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In: Accounting

How does kidder's structure for decision-making relate to the integrated model presented in the chapter?

How does kidder's structure for decision-making relate to the integrated model presented in the chapter?

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Expert Solution

Answer:-

Kidder's approach to ethical decision making begins with defining the issue, gathering facts, considering right-versus-wrong and right-versus-right issues, applying ethical standards, looking for alternatives, making a decision and acting, and reflecting.

Making a decision and acting require courage. Reflecting on our decisions help to learn lessons from the process and can be applied to future problems and dilemmas. The approach from Kidder is employed in the integrated ethical decision making process.

● 2 interesting aspects of Kidder's approach are described below.

Test for right-versus-wrong issues. Kidder suggests using four determinations including a legal test. If lawbreaking is involved (i.e., fraudulent financial statements), then the problem becomes a legal matter, not a moral one. The smell test relies on intuition. If you have an uneasy feeling about the decision or course of action, chances are it involves right-versus-wrong issues. The front-page test asks how you would feel if your decision made it to the front page of the local newspaper. If you feel uncomfortable about it, then you should consider choosing another alternative. The mom test asks how you would feel if your mother or some other important role model became aware of your choice. If you have a queasy feeling, then it is best to reconsider your choice.

Test for right-versus-right paradigms. If an issue does not involve wrong behavior, then it likely pits two important positive values against each other. Kidder identified four such models: truth-telling versus loyalty to others and institutions; personal needs versus needs of the community; short-term benefits versus long-term negative consequences; and justice versus mercy. When an ethical dilemma pits two core values against each other, a determination should be made whether they are in conflict with one another in this situation.

Extended Discussion

Kidder's Four Paradigms for Understanding Ethical Dilemmas:

1. Truth vs. Loyalty: Truth, for most people, is conformity with facts or reality. Loyalty involves allegiance to a person, corporation or body of people, a government, or set of ideas to which one owes fidelity. It is right to stand on truth. It is right to be loyal.

2. Individual vs. Community: Individualism assumes that in a society where each person vigorously pursues his own interests, the social good would automatically emerge. As such, the rights of the individual are to be preserved. By "community" it is meant that the needs of the majority outweigh the interests of the individual. Communities speak to us in a moral voice. They lay claims on their members. It is right to consider the individual. It is right to consider the community.

3. Short-Term vs. Long-Term: Short-term concerns are usually associated with the satisfaction of current needs in such a way as to preserve the possibility of a future. Long-term concerns are usually defined by the projection of future interests in such a way that there will be ample means to meet future required needs. It is right to think and plan short-term. It is right to think and plan long-term.

4. Justice vs. Mercy: Justice urges us to stick by our principles, hold to the rules despite the pressures of the moment, and pursue fairness without attention to personalities or situations. Mercy urges us to care for the peculiar needs so individuals case by case and to seek benevolence in every way possible. It is right to be merciful. It is right to enforce justice.

How is understanding the type of dilemma helpful?

-It helps us separate right from wrong;
-It helps us cut through mystery, complexity, and confusion;
-it helps us strip away extraneous detail and get to the heart of the matter.

Once the dilemma is identified it is often very helpful to understand how one thinks about ethical decisions.

Ways of Thinking:

Kidder draws from the field of Moral Philosophy to describe different ways of thinking about ethical decision making. He describes three:

1. Ends Based: Known to philosophers as "utilitarianism", this principle is best known by the maxim "Do whatever produces the greatest good for the greatest number".

2. Rules Based: This principle is best known as the "categorical imperative". Rules exist for a purpose, they promote order and justice and should be followed. Follow the principle that you want others to follow. "Stick to your principles and let the chips fall where they may".

3. Care Based: Putting love for others first. It is most associated with the Golden Rule: "Do unto others as you would have them do unto you".

Once it is determined that the problem is not a right vs. wrong, that indeed an ethical dilemma exists. One examines how one is thinking about the situation and begins to try and resolve the dilemma.


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