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Title: |
The Dilemma of Enterprise’s Ethical Decision and Its Solutions: On the Perspective of the Bounded Rational Decision |
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Source: |
International Conference on Engineering and Business Management 2012(Part 3 Engineering and Project Management)
(pp 2054-2057)
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Author(s): |
Rong Liu, Hohai University, Nanjing, Jiangsu, China, 211100 |
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Abstract: |
An enterprise’s ethical decision should be economically rational; however, because of commitment mechanisms embedded in enterprise organization itself, its operations will always deviate from rationality. The bounded rational decision model emphasizes that the enterprise’s decisions are impacted by its own commitment mechanisms, especially by the power relationship of actors. As a result, the enterprise’s ethical decisions should not entirely obey the principle of rational decision. When there are abuses of power by actors, there would appear immoral decision. The solution should be focused on restrictions on decision-making and commitment mechanisms. Replacing the bounded rationality with insetting rationality is a practical way.
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