The Intersection of Business Ethics and Business Analysis: Making Decisions
Disclaimer: The views and opinions expressed in this article are those of the author and may not reflect the perspectives of IIBA.
Hey, business analysis professionals in the house!
As someone who appreciates structure and professional resources, I value IIBA’s A Guide to the Business Analysis Body of Knowledge (BABOK Guide). This comprehensive guide explains techniques like decision analysis, which can help you make informed decisions.
Yet business analysis also involves a critical interplay between decision analysis and ethical considerations, adding complexity and depth to the field. To unravel it, let’s explore the complex decision-making landscape so you can navigate it with confidence and clarity.
First, what’s the difference between decision analysis and ethical decision-making?
Decision analysis, originating from Operations Research, has become a crucial tool in various industries, including business analysis. It assesses a problem and possible decisions to determine the value of alternate outcomes under conditions of uncertainty. Decision analysis evaluates the factors that should influence our choice of action, guiding us toward the best course of action.
Ethical Decision-Making: The 5 A’s Model
As outlined in the sixth edition of Business Ethics, ethical decision-making ensures that business decisions are ethically sound and aligned with an organization's code of ethics. When ethical dilemmas arise, business analysis professionals need more than analytical tools.
Enter the 5 A’s of ethical decision-making. This adaptable model encourages thoughtful reflection on core beliefs and values through five steps:
- Assessment
- Alternatives
- Analysis
- Action
- Analysis
When to Apply the Technique?
When making a business decision, ask these four questions to judge its moral soundness:
- Is it legal? The business decision should be legal.
- Does it meet company standards? A company’s ethical standards should be outlined in its values, code of ethics, or policy statements.
- Is it fair to all stakeholders? The ethical decision must ensure that the interests of all affected parties are considered and respected.
- Can it be disclosed? If you’re comfortable explaining and defending your decision to stakeholders or in a public forum, it’s a good indication that the decision is ethically sound and justifiable.
Your 5-Step Guide
- Assessment. Start by defining the decision problem and outlining key factors, criteria, and objectives. Gather all relevant facts and documents.
- Alternatives. Traditional business analysis techniques include brainstorming to generate a range of possible alternatives or options. Use this approach to address ethical issues as well.
- Analysis. The BABOK Guide suggests that business analysis professionals use analytical tools such as decision trees, cost-benefit analysis, or risk assessment techniques to assess each alternative against the defined criteria and objectives. However, if faced with an ethical dilemma, the 5 A’s model asks you to consider your ethical values and those of your stakeholders.
- Action. After thorough analysis, act by weighing the pros and cons of each alternative. An ethical approach involves executing and documenting each step.
- Analysis (post-action reflection). From a BABOK Guide perspective, this involves implementing and monitoring the chosen alternative. The 5 A’s model adds reflection and evaluation of expected versus actual outcomes, helping you learn and improve future analyses.
Master Ethical Decision-Making
In a nutshell, the decision analysis and ethical decision-making frameworks are similar. That said, there are moments when ethical considerations take precedence.
The 5 A’s framework helps you navigate ethical challenges, ensuring you consider stakeholders and communicate effectively with everyone involved. Explore the framework to take your decision-making skills to the next level.
Remember, each ethical decision is an opportunity to assert your integrity and improve. Get ready to seize the power of ethical decision-making and steer your organization toward greatness!
Happy analyzing and decision-making!
Better decisions lead to better business outcomes. Purchase A Guide to the Business Analysis Body of Knowledge (BABOK Guide)—the globally recognized standard for the practice of business analysis.
About the Author
Zola is a seasoned South African professional in marketing and communications, renowned for driving continuous improvement and compliance. Featured in Forbes Africa magazine for revolutionizing freelancing through her media business, Zola is a recognized leader in her field. She is a recipient of the prestigious Chevening Scholarship Award and holds a master's degree from the UK. Currently transitioning her career into business analysis, Zola has completed multiple certifications and initiated projects aligned with business operations. Her innovative technical solutions have enhanced project outcomes by 30%. Recently, she earned the title of "Certified Ethics Officer" at The Ethics Institute of South Africa, reflecting her commitment to ethical innovation. Zola continues to leverage her expertise to create impactful solutions across industries.
