Exploring Ethical Decision-Making: Examples and Factors

In business, all professionals are tasked with making ethical decisions every day. Artificial intelligence (AI), data privacy, political tension, workplace diversity, and other current issues are inextricably woven into the modern workplace.

This post will cover some examples of ethical decision-making in business, and the factors that can influence these decisions, to help you prepare for tough choices when they arise.

Understanding Ethics in a Changing World

As an academic subject, ethics is the study of moral rights and wrongs.¹ This is not an exact science; cultural definitions of right and wrong are always shifting.

In today’s social, digital, and business worlds, ethical standards are in a state of flux. Several factors are currently reshaping how ethical decisions are made:

• Social media
• Changing cultural norms
• AI technology
• Sustainability
• LGBTQ+ rights
• Immigration

At Santa Clara University, the mission of the Markkula Center for Applied Ethics is to engage individuals and organizations in making choices that demonstrate respect and care for others. With a strong focus on applied ethics, the Markkula Center offers students opportunities to explore how the factors above shape collective ethical standards, while also earning credits toward their MBA.

What Is Ethical Decision-Making?

Ethical decision-making is the process of making principled choices when faced with an ethical dilemma. After weighing the negative consequences of a decision against your ethical standards, you can move forward with the path that aligns with your values.

Ethical decisions can vary from person to person, shaped by individual values, social norms, laws, or religious beliefs. Even so, there are established guidelines and approaches that can help you act ethically and feel more confident in your choices. The Framework for Ethical Decision-Making refers to these approaches as “lenses:”

• The rights lens: Choices are rooted in the moral rights to which all humans are entitled 
• The justice lens: Everyone deserves fair and equal treatment
• The utilitarian lens: The right choice is the one that produces the greatest benefit for the greatest number of people
• The common good lens: Ethical actions should contribute to the good of society or your community 
• The virtue lens: Actions should align with ideal character traits that make us our best selves
• The care ethics lens: Choices are rooted in shaping positive relationships

For example, ethics in corporate governance is rooted in fairness, transparency, and accountability. Corporate leaders may make ethical decisions through a virtue lens to ensure they are meeting ethical standards, or through the common good lens to act in the best interest of the whole company.

Everyday Ethical Decision-Making Examples

People make ethical decisions every day. Here are some common examples:

• A friend is about to make a bad decision. Do you say something or spare this person’s feelings?
• Do you give money to someone who might spend it irresponsibly?
• Do you speak up or mind your own business when you see someone being mistreated?

Examples of Ethical Decision-Making in Business

Consider these examples of ethical decision-making in the workplace, with a framework for navigating each one:

• Financial misconduct: Deciding whether to report a financial crime at your company— a form of cheating and morally unethical—is a decision you can make through the virtue lens
• Greenwashing: A common example of ethical decision-making in marketing, greenwashing is a type of false advertising in which a product or practice is falsely labelled as sustainable. You might address this through the common good approach, as deceiving the public about unsustainable practices harms society as a whole
• Prejudiced hiring: Addressing prejudice in your company’s hiring practices can be seen through the rights lens, as bias violates applicants’ human rights

Factors That Influence Ethical Decision-Making

Here are a few of the most common influences on ethical decision-making.

Cultural and Social Norms

Social norms are always shifting. Corporations in today’s world face more social pressure than ever before, thanks to the advent of social media. The risk of being “cancelled” or criticized on a large scale makes the stakes much higher for business leaders to abide by cultural norms.

Personal Values and Beliefs

Your family, education, religious beliefs, and upbringing have a significant impact on your ethical values. These values are different for everyone, and they shift over time, in line with cultural norms. For example, according to the banking company NCR Atleos, Baby Boomers are more likely to be fiscally conservative than are people born in Generation Z.²

Work-life balance is another personal value that divides generations. In a 2025 article, Forbes reported that Millennials and Gen Z are more likely to prioritize leisure and well-being over their work than older generations are.³

Policies and Laws

In an ideal world, the law would always align with what ethical standards. In reality, ethics are subjective and evolve over time, which means laws may sometimes be viewed as outdated or even unethical if they fail to adapt to changing cultural expectations.

This is why regulatory changes in business are essential: industry regulations must be regularly reviewed and updated to reflect evolving ethical norms. It also explains why international compliance can be challenging, since what is considered ethical in one culture may not align with the values of another.

Market and Environmental Factors

Just as cultural norms affect business ethics, so do market norms. Corporations are pressured to keep up with the competition in the market and in the court of public opinion. That means ethical hiring, transparency, and sustainable practices. Sustainability requirements are also increasingly enforced by law.⁴

In many cases, this pressure encourages businesses to act ethically. It can, however, also lead to dishonest practices, such as greenwashing.

A Simple Framework for Making Ethical Decisions

Ethical dilemmas can be tricky. When you can’t use the full Ethical Decision-Making Framework to guide your decisions, here are some quick and easy techniques:

1. Gather relevant information
2. Weigh the potential consequences of different actions
3. Consider the interests of multiple stakeholders
4. Seek guidance from colleagues or external resources
5. Choose an option and commit to it
6. Engage in ethical reasoning and reflection

Learn to Lead with Your Ethics

As elusive as ethical decision-making can be, its importance in business can’t be overstated. From data collection to hiring policies and operations, you can apply an ethical lens to almost every situation in the workplace.

If you’re eager to learn more about ethics in business, consider enrolling in the Online MBA program through Leavey School of Business at Santa Clara University. Ethics is ingrained in the curriculum at SCU. Learn more about the program and how it can elevate your career by speaking with an admissions outreach advisor today.