Bachelor of General Studies (BGS) Degree Practice Exam

When assessing ethical issues, what is an important first step for managers?

1. Considering the profitability of the decision

2. Analyzing the ethical implications

3. Consulting with legal advisors

4. Reviewing past decisions

The correct answer is: Analyzing the ethical implications

When assessing ethical issues, an important first step for managers is analyzing the ethical implications. This initial step is crucial because it requires managers to fully understand the situation at hand, including the potential consequences of their decisions on various stakeholders—such as employees, customers, the community, and the organization itself. By thoroughly examining the ethical aspects, managers can identify the core values and principles that are at stake, which informs more conscious and responsible decision-making. For instance, a manager might analyze how a decision affects employee well-being or public trust in the organization. This foundational analysis helps establish a framework for making decisions that not only align with organizational goals but also uphold ethical standards. In contrast, while considering profitability, consulting legal advisors, or reviewing past decisions may be valuable in the decision-making process, they do not address the ethical implications directly. Profitability focuses on financial outcomes rather than moral consequences, legal consultation deals primarily with compliance rather than ethical considerations, and learning from past decisions does not necessarily guarantee that the ethical factors will be identified or appropriately addressed in current scenarios. Thus, starting with an analysis of ethical implications sets a strong foundation for subsequent actions and considerations.