Analysis of Ethical Behavior in Accounting for Management Decision

This assignment analyzes ethical behavior in management decision-making, addressing the phenomenon of 'good people doing bad things' in the workplace. The paper explores various factors contributing to unethical conduct, including scripts, rote behavior, distractions, and moral exclusion. Scripts, as embodied knowledge, often lead to habitual behaviors, while rote behavior, stemming from habit, can cause errors. Distractions, both mental and emotional, are identified as significant contributors to mistakes and accidents. Moral exclusion, where individuals are deemed undeserving of moral consideration, is also examined as a driver of unethical actions. The conclusion emphasizes the need for improved internal controls to mitigate workplace issues, promote ethical decision-making, and foster a more inclusive environment.

Running Head: ACCOUNTING FOR MANAGEMENT DECISION
Accounting for management decision
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ACCOUNTING FOR MANAGEMENT DECISION
Introduction
In context to the situation “where good people do bad things at work” is that the
corporate mistakes are not done by bas people only. In reality this situation arises in business as a
result of selfishness and greediness where good people do bad things. Ethic and morality is two
things that govern an individual. Business ethic is the ethic which is applied to examine the
ethical behavior of individuals. Any business can achieve short term gains or profit by
performing unethically but it will lead to damage to the business. So ethic is an important part of
any business which will help in achieving the goodwill and increase the life of the business in the
market. Ethic help an organization to produce goods and provide service which are safe and
effective while meeting the customer satisfaction.
In business ethical decision are more prioritized than unethical decisions so each person
views their ethical question according to their point of view. Every human has their own unique
value of ethical decision. While ethical decision does not only affect the humans but also affect
the situation around him. Mostly ethical decision is based on two factors which are cost incurred
and the benefit received from that. Both profit and social responsibility is a different aspect and
each cannot be maximized simultaneously as ethical and unethical decision is not clear. Every
human being is personally dependable for the ethical or unethical decision and the action related
to it. People unique moral is responsible for decision making and they must be liable for their
actions too.

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Types
As Abraham Lincoln said “when I do well, I feel good and when I do badly, I feel bad” this
should be the ethical behavior of an individual. Some of the factors which cause good people to
do bad thing at work are as follows:
 Scripts – It’s been one of the growing interests among the psychology. Scripts play a
double role in the field of psychology. There are mainly two types of scripts which help
to know or understand the behavior of humans. While there is little condition which is
needed to be satisfied for the occurrence of scripted behavior. First an individual need to
stable, secondly context related to script must be presented and lastly an individual need
to enter the script as it will fill the gap between the behavior and cognition. Here it so
assumed that script are highly contingent. Script is embodying the knowledge of
stereotyped event. In this people usually avoid the thinking’s that arise in their mind as
those are the daily activities that they are performing. Mental capacity of human are
limited which is most common for saving the mental energy. Scripts are mainly
compared with the habit and roles of human beings.
 Rote behavior – it refers to the act that is done repeatedly because of habit. It is not
considered as important as other but it may cause adverse consequence if thinks continue
like that. There is always a need of technique to complete a task unless it creates any
hurdle.
 Distraction – It is the diversion of attention of an individual from its work to another
source which creates the condition of distraction. Distraction can occur in anywhere
whether it is at home or at work. It can be created by both mental and emotional
disturbance. Distraction in important work can cause critical issues in work place and

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lead to mistakes or accidents. Psychologist also defines distraction as one of the main
reason of forgetting or memory loss. Human thinking never stops whether it is in
conscious or subconscious state. While if fatigue or stress is present with the distraction
than the chances of error occurring is might be more or increases. Distraction can also
shift the mental condition of a human from a rational state to an emotional state. All
distraction from the work place need to be removed in order to work at best.
 Moral exclusion – It mainly occurs when an individual do something which is outside his
or her boundary and where the moral values, rules, consideration and fairness does not
followed. Individual who are morally excluded they are deemed as undeserving or non-
entities. While it continuously harms them and exploits them it leads to the cause of bad
work. There could be the chance of rationalization and violence among the individual.
Moral consist of all the norms, rules, rights, responsibilities and duties than one need to
follow. Peoples who are out of morale are justified as enemies and strangers. Sometimes
people are morally excluded due factors like gender, caste, religion, age, sex and
political. Like an army person of one country does not like the army of another country
especially during a war time, it is because they morally exclude them.
Conclusion
Every organization makes their own rules and regulation for creating an ideal situation
and speed up the growth in their organization. But when the rules and regulations fails or
collapse the system in an organization, than good peoples behaves in a bad way. Then it will be a
general phenomenon that good people are making mistake in work either intentionally or
accidentally. Sometime repeated work can also lead to the creation of mistakes among good
people. People changes themselves according to the situation and circumstances that is prevailed

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around them. It is also true that mental responses of humans are mainly happens in their
unconsciousness. So there is a need of minimizing problems and issues in the work place by
improving the internal control which will also solve the problem of script. We should evolve our
society especially the younger ones so that they do not get easily manipulated into any type of
discrimination .