Ethical Decisions: JP Morgan Chase & Co.

The issue of ethical decision making has become more important in recent years for a variety of reasons. An understanding of ethical decision making in organizations is more significant to the development of organizational science. Managers engage in decision-making behavior affecting the lives and well-being of others. The individual responds to an ethical dilemma with cognitions determined by his or her cognitive moral development stage.

To understand “ethical decision making” it is best to break the phrase up. What is the definition of ethics? According to the website businessdictionary.com (2011), ethics are “basic concepts and fundamental principles of right human conduct.” It stands to reason that ethical decision making is the ability to make decisions based on core or base principles of correct human conduct. We at Acme Toy Company depend on employees at all levels to make the “right” choices when it comes to business decisions and their own conduct. How do we support them in their ethical decision making?

JPMorgan Chase & Co. is one of the most leading financial service firm and banking industry in the United States and worldwide. The firm was founded in 2000 on merger between Chase Manhattan Corporation and JPMorgan & Co. Based on the Forbes report JPMorgan Chase & Co is the world's sixth largest public company based upon the companies operational assets. The hedge fund unit of JPMorgan Chase is the 2nd largest hedge fund in the United States.

In a business setting especially, good decision making is an essential skill for career success. People can learn to make timely and well considered decisions, unlike the many unethical or quickly selected options talked about earlier. Learning these appropriate guides early will often lead a business team to success much faster. Obviously, when making poor decisions, a business risks failure. All in all, a dedicated commitment to ethical behavior is the right thing to do, is good business, and promoting ethical excellence

Admiring how ethics takes a role in the workplace is a significant way to start individual's thinking about the emotional and psychological aspects of ethical decision-making. There are many steps businesses can take into account when incorporating ethical decision-making into their practices, beginning with ethics training. All businesses, regardless of for-profit status should embrace ethics training at all levels of the organization. When an entire business takes part in learning the values of ethics together the program will be more successful. Ethics training is an important motivator for productivity as well as a way to practice the organization’s values. This training will enhance awareness of employees and open up the opportunity to discuss unusual ethical decisions that may

While an organization is often confronted with the numerous issues in need of effective decision-making processes, their ability to utilize their code of ethics is proving more vital to their success in today’s society (The only way is ethics. 2015). Furthermore, an organization’s willingness and ability to sacrifice possible profits in order to ensure the well-being of their stakeholders, signifies both their type of ethics and the degree in which it influences their business transactions. Therefore, an ethical decision can be classified as a decision that is intended to either maintain or improve the reputation and/or welfare of an organization and their participants, as well as their prospective growth. Despite the fact that ethical decision-making

Since the dawn of time, ethical behavior has been a recurring thought that is a constant throughout the decision making process by many businesses. However, ignored more times than one care to admit. In addition, in recent years the ethical dilemmas continue to plague organizations and their leadership. Organizations and their leaders make decisions daily that can ultimately lead to embarrassing outcome. The subject of ethics is never meet easy, nor is it straightforward in any context. Ethics is a forever-evolving phenomenon that expands throughout organizations as well as your personal lives (Cheney & Frenette, 1993; Fielder, 1964; Jennings, 2012).

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases [9th edition]. Mason, OH: Cengage Learning. Retrieved from https://www.betheluniversityonline.net/cps

The business world is where most people work during their lives to make a living for themselves. Those same businesses run on a thin line of being ethical or crossing that line and ending up splayed on the front page of the next day’s news. During the first two chapters of Business Ethics: Ethical Decision Making and Cases, it is discussed that business may allow themselves to slip into being unethical, and pay the price for a greater reward. Ron Carucci, a writer for Forbes.com states in his article, “Will Your Ethics Hold Up Under Pressure”, that “Helping businesses to perform just a little better, just a little more ethically, is arguably the most important project humanity can undertake.” Having ethics in business does aid a company in

JP Morgan Chase & Company is one of the United States leading banks and a leading global financial services firm. Its origins can be traced back to 1799 when the company was first chartered under its predecessor known as Bank of the Manhattan Company. J. P. Morgan along with Anthony Drexel formed a private merchant banking partnership called Drexel and Morgan & Co., which later was renamed

Ethics involve an individual's moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions within the organization are always emanate from the company's culture. However, the decision to act ethically and morally requires an individual judgment. Thus, members of staff are obligated to make decisions that reflect their right course of action (shaw, 2008). This involves rejecting the option that could lead to the greatest short-term gain. The leadership of most organizations stresses the need to adopt ethical behaviors and corporate social responsibility. Ethical dealings can earn the organization various benefits. For instance, it may attract more clients to the business thus boosting sales; employees could be motivated to stay longer in the organization thereby reducing recruitment expenditures. Ethical behaviors could also earn the business a favorable reputation that could attract investors. Categorically, a lack of social responsibility or unethical behavior may hurt the firm's reputation and scare away investors. Sales and profits could fall in the process.

Making consistently ethical decisions is difficult. Most decisions have to be made in the context of economic, professional and social pressures, which can sometimes challenge our ethical goals and conceal or confuse the moral issues. In addition, making ethical choices is complex because in many situations there are a multitude of competing interests and values. Other times, crucial facts are unknown or ambiguous. Since many actions are likely to benefit some people at the expense of others, the decision maker must prioritize competing moral claims and must be proficient at predicting the likely consequences of various choices. An ethical person often chooses to do more than the law requires and less than the law allows.

Using 2 different companies as example, analyse and evaluate the ethical decision making process within a business setting.

The Panic of 1907, the Glass-Steagall act of 1933, and the development of merchant banking in the 1980’s were significant events in the history of banking in the Unites States, and the Morgan banks were intricately involved in all three. The J.P. Morgan bailout of the Panic of 1907 could not have been possible in 1987 because of the magnitude of the crisis, just as the government was not prepared to deal with the Panic of 1907 at the time it occurred. The lessons learned from the Great Depression and the contributions that J.P Morgan had made to the formation of government regulation and policy averted another depression in the 1990’s. J.P. Morgan remains one of the largest banks in the United States to this day, and although its influence is not the same as it was in its heyday, it has been intimately involved in the formation of the modern banking system in place in the world

In their personal and professional lives, people can and, unfortunately, sometimes do go against their moral and ethical standards. Ethical standards are what it means to be a good person, the social rules that govern our behavior. Ethics in business is essentially the study of what constitutes the right and wrong or the good or bad behavior in the workplace environment. A business is an organization whose objective is to provide goods or services for profit. The organization has a group of people that work together to achieve a common purpose. The moral challenges that these men and women face each day along with a whole range of problems that could occur, are why ethics plays such an important