There are many sources of ethical standards; four are widely used: the utilitarian approach, the rights approach, the fairness approach, and the common good approach. There are many other sources, but these four are representative.

The utilitarian approach states that ethical action is the one that provides the most good or does the least harm. The moral corporate action would be the one that produces the greatest good and does the least harm for all affected parties-customers, employees, shareholders, the community, and the environment.

The rights approach maintains that an ethical action is the one that best protects and respects the moral rights of the affected parties. Moral rights can include the rights to make one’s own choices about what kind of life to lead, to be told the truth, not to be injured, and to a degree of privacy. Which of these rights people are actually entitled to-and under what circumstances- is widely debated. Nevertheless, most people acknowledge that individuals are entisome morale moral rights. An ethical organizational action would be one that protects and respects the moral rights of customers, employees, shareholders, business partners, and even competitors.

The fairness approach posits that ethical actions treat all human beings equally, or, if unequally, then fairly, based on some defensible standard.

The common good approach highlights the interlocking relationships that underlie all societies. This approach argues that respect and compassion for all others is the basis for ethical actions.

It emphasizes the common conditions that are important to the welfare of everyone. These conditions can include a system of laws, effective police and fire departments, healthcare, a public educational system, and even public recreation areas.

If we combine these four standards, we can develop a general framework for ethics (or ethical decision making). This framework consists of five steps.

Recognize an ethical issue

• Could this decision or situation damage someone or some group?
• Does this decision involve a choice between a good and a bad alternative?
• Does this issue involve more than legal considerations? If so, in what way?

Get the facts

• What are the relevant facts of the situation?
• Do I have sufficient information to make a decision?
• Which individuals and/or groups have an important stake in the outcome?
• Have I consulted all relevant persons and groups?

Evaluate alternative actions

• Which option will produce the most good and do the least harm? (the utilitarian approach)
• Which option best respects the rights of all stakeholders? (the rights approach)
• Which option treats people equally or proportionately? (the fairness approach)
• Which option best serves the community as a whole, and not just some members? (the common good approach)

Make a decision and test it

• Considering all the approaches, which option best addresses the situation?

Act and reflect on the outcome of your decision

• How can I implement my decision with the greatest care and attention to the concerns of all stakeholders?
• How did my decision turn out, and what did I learn from this specific situation?