This chapter discusses different perspectives and trends in social decision making, especially the actual processes used by humans when they make decisions in their everyday lives or in business situations. The chapter uses cognitive psychological techniques to break down these processes and set them in their social context. Most of our decisions are made in a social context and are therefore influenced by other people. If you are at an auction and bidding on a popular (...) item, you will try to guess how long the others will keep in the bidding race. Likewise, when you and another person have to coordinate your decision to win a card game you will also try to think about what the other person know and what s/he will do, so you can adjust your choice. In other words, you are trying to come up with a model of the person and his decision-making process. This involves the capability to think about the thoughts and intentions of others, to put yourself in another person's shoes (perspective taking), and to think recursively about your and another person's over several steps (like in a game of chess). Especially, recursive social reasoning is one of the hallmarks of social decision-making. Whereas observational, competitive and cooperative decision-making can all be seen as trying to maximize the own reward or profit, altruistic decision-making blatantly violates this axiomatic principle of behavioral economics. Yet, altruistic behavior is quite common throughout human society. -/- . (shrink)

The Ostrogorski paradox and the discursive dilemma are seemingly unrelated paradoxes of aggregation. The former is discussed in traditional social choice theory, while the latter is at the core of the new literature on judgment aggregation. Both paradoxes arise when, in a group, each individual consistently makes a judgment, or expresses a preference, (in the form of yes or no) over specific propositions, and the collective outcome is in some respect inconsistent. While the result is logically inconsistent in the (...) case of the discursive paradox, it is not stable with respect to the level of aggregation in the case of the Ostrogorski paradox. In the following I argue that, despite these differences, the two problems have a similar structure. My conclusion will be twofold: on the one hand, the similarities between the paradoxes support the claim that these problems should be tackled using the same aggregation procedure; on the other hand, applying the same procedure to these paradoxes will help clarify the strengths and weaknesses of the aggregation method itself. More specifically, I will show that an operator defined in artificial intelligence to merge belief bases can deal with both paradoxes. (shrink)

This volume presents research that integrates decision making and creativity within the social contexts in which these processes occur. The volume is an essential addition to and expansion of recent approaches to decision making. Such approaches attempt to incorporate more of the psychological and socio-cultural context in which human decision making takes place. The authors come from different disciplines and also belong to a broad spectrum of research traditions. They present innovative chapters dealing (...) with both theoretical and empirical aspects of decision making in different personal and organizational contexts. All chapters are written from the perspective that human decision making is inherently social and more or less creative. The volume addresses fundamental questions about the nature of human decision making as it occurs in different social contexts. Thereby, it becomes essential reading for researchers in decision making and for advanced students in psychology, management science, informatics, and related disciplines. (shrink)

Sometimes citizens disagree about political matters, but a decision must be made. We have two theoretical frameworks for resolving political disagreement. The first is the framework of social choice. In it, our goal is to treat parties to the dispute fairly, and there is no sense in which some are right and the others wrong. The second framework is that of collective decision-making. Here, we do believe that preferences are truth apt, and our moral consideration is (...) owed not to those who disagree but to the community that stands to benefit or suffer from the decision. In this chapter, I describe and explore these two frameworks. I conclude two things. First, analysis of real-world disagreement suggests that collective decision-making is the right way to model politics. In most, possibly even all, political disagreement, all parties believe (if implicitly) that there is an objective standard of correctness. Second, this matter is connected to the concept of pluralism. If pluralism is true, then collective decision-making cannot be applied to some political disagreements. More surprisingly, pluralism may rule out the applicability of social choice theory as well. (shrink)

Psychological studies have long demonstrated effects of expectations on judgment, whereby the provision of information, either implicitly or explicitly, prior to an experience or decision can exert a substantial influence on the observed behavior. This study extended these expectation effects to the domain of interactive economic decision-making. Prior to playing a commonly-used bargaining task, the Ultimatum Game, participants were primed to expect offers that would be either relatively fair or unfair. A third group played the Game without (...) receiving any prior information about expected offers. As predicted, these expectations had a large effect on decisions made by participants in the Ultimatum Game, with those with expectations of fairness rejecting significantly more unfair offers than those participants who expected low offers. Implications for models of fairness and equity are discussed. (shrink)

Individuals are downloading copyrighted materials at escalating rates (Hill 2007; Siwek 2007). Since most materials shared within these networks are copyrighted works, providing, exchanging, or downloading files is considered to be piracy and a violation of intellectual property rights (Shang et al. 2008). Previous research indicates that personal moral philosophies rooted in moral absolutism together with social context may impact decision making in ethical dilemmas; however, it is yet unclear which motivations and norms contextually impact moral awareness (...) in a peer-to-peer (P2P) file sharing context (Shang et al. 2008). In sum, factors affecting the decision to share copyrighted material require further clarification and investigation (Shang et al. 2008). The purpose of this study was to use a consumer-based scenario and multiple ethics measures to explore how idealism, formalism, and perceived social consensus impact users’ propensity to recognize that the sharing of copyrighted media through P2P networks was an ethical issue and their subsequent ethical intentions. Results showed that high levels of idealism and formalism were associated with an increased recognition that file sharing was an ethical issue, but neither construct had a direct effect on ethical intention. Strong social consensus among respondents that other people consider file sharing to be unethical was also positively related to the recognition that file sharing was an ethical issue, and ethical recognition was a moderate predictor of intention not to engage in file sharing. Finally, a post hoc mediation analysis indicated that idealism, formalism, and social consensus operated through recognition of an ethical issue to impact ethical intention (indirect-only mediation). (shrink)

This research extends our understanding of ethical decision making on the part of leaders by merging social role and self-construal perspectives. Interdependent self-construal is generally seen as enhancing concern for justice and moral values. Across two studies, we tested the prediction that non-leading group members’ interdependent self-construal would be associated with lower levels of unethical decision making on behalf of their group but that, in contrast, this relationship would be weaker for leaders, given their (...) class='Hi'>social role. These predictions were experimentally tested by assigning participants to the role of leader or non-leading group member, and assessing the association between their interdependent self-construal and their unethical decision making. Across both studies, interdependence predicted less unethical decision making on behalf of one’s group for non-leading group members. However, the leader role was shown to weaken, and even reverse, this relationship. This research demonstrates that self-construal influences group-based ethical decision making, but that the nature of this influence is moderated by social role. (shrink)

Abstract:This paper develops a framework for examining decision making about ethical issues and tests the applicability of a social contract perspective. Using two separate samples of students and salespeople, we determine that community members (salespeople) tend to judge a potentially unethical act to constitute a violation of an implicit social contract and non-community members (students) do not. Also, consistent with the emphasis on context specificity of integrative social contracts theory, situational variables influence perceptions of ethicality (...) for the community members, but do not affect the perceptions of individuals outside the community. The study finds considerable support for the use of a social contractarian perspective in the study of decision-making processes about ethical issues. (shrink)

Research on human decision making is at the present time undergoing rapid changes. From previously being much focused on models and approaches with an origin in economy, much of the present day research finds its inspiration from disciplinary approaches concerned with incorporating more of the context that the decision making takes place in. This context includes psychological aspects of the decision maker and social-cultural aspects of the situation he or she acts in. All human (...) decision making occurs in dynamically changing contexts. One factor contributing to this is that human beings or groups in many situations act as entrepreneurs trying to improve the situation for themselves or their organization. Given that this is the case, it is of increasing interest for both researchers and practitioners interested in the social aspects of decision making to consider the relation between creativity and decision making. (shrink)

Men often make riskier decisions than women across a wide range of real-life behaviors. Whether this sex difference is accentuated, diminished, or stable under stressful conditions is, however, contested in the scientific literature. A critical blind spot lies amid this contestation: Most studies use standardized, laboratory-based, cognitive measures of decision making rather than complex real-life social simulation tasks to assess risk-related behavior. To address this blind spot, we investigated the effects of acute psychosocial stress on risk (...) class='Hi'>decision making in men and women using a standardized cognitive measure and a novel task that simulated a real-life social situation. Participants were exposed to either an acute psychosocial stressor or an equivalent control condition. Stressor-exposed participants were further characterized as high- or low-cortisol responders. Results confirmed that the experimental manipulation was effective. On the IGT, participants characterized as low-cortisol responders made significantly riskier decisions than those characterized as high-cortisol responders. Similarly, in the online chatroom, participants characterized as low-cortisol responders were, relative to those in the Non-Stress group, significantly more likely to make risky decisions. Together, these results suggest that at lower levels of cortisol both men and women tend to make riskier decisions in both economic and social spheres. (shrink)

Despite significant ethical advances in recent years, including professional developments in ethical review and codification, research deception continues to be a pervasive practice and contentious focus of debate in the behavioral sciences. Given the disciplines' generally stated ethical standards regarding the use of deceptive procedures, researchers have little practical guidance as to their ethical acceptability in specific research contexts. We use social contract theory to identify the conditions under which deception may or may not be morally permissible and formulate (...) practical recommendations to guide researchers on the ethical employment of deception in behavioral science research. (shrink)

Adolescence is a period of life during which peers play a pivotal role in decision-making. The narrative of social influence during adolescence often revolves around risky and maladaptive decisions, like driving under the influence, and using illegal substances. However, research has also shown that social influence can lead to increased prosocial behaviors and a reduction in risk-taking. While many studies support the notion that adolescents are more sensitive to peer influence than children or adults, the developmental (...) processes that underlie this sensitivity remain poorly understood. We argue that one important reason for this lack of understanding is the absence of precisely formulated models. To make a first step toward formal models of social influence during adolescence, we first identify three prominent verbal models of social influence in the literature: social motivation, reward sensitivity, and distraction. We then illustrate how these can be translated into formal models, and how such formal models can inform experimental design and help identify developmental processes. Finally, by applying our formal models to existing datasets, we demonstrate the usefulness of formalization by synthesizing different studies with seemingly disparate results. We conclude with a discussion on how formal modeling can be utilized to better investigate the development of peer influence in adolescence. (shrink)

The personality traits of social work leaders are important factors influencing ethical decision-making in organisations. The lack of empirical evidence with regard to the relationship between personal authenticity and ethical decision-making in social work stimulated the present study. Two hundred thirty-eight leaders (81.9% female) from organisations working in various fields of social work were administrated with the Authenticity Scale, Managerial Ethical Profile, and conducted two free association tasks with the cue words authenticity and (...) self. Authenticity was positively correlated with ethical decision-making. In contrast, authenticity was not correlated with the tendency to make decisions in an effort to maximise economic profit for the organisation. The results of the present study have important practical implications for the social work sector. The positive correlation of authenticity with ethical decision-making indicates that positive reinforcement of authenticity in leaders could possibly lead to supporting ethical decision-making within an organisation. Therefore, supporting authenticity in leaders working in social work may also help foster quality services and prevent unethical behaviour. (shrink)

Benzodiazepines and antidepressants have been shown to change responses to unfairness; however, the effects of their combined use on unfairness evaluation are unknown. This study examines the effects of concomitant benzodiazepines and antidepressants long-term use on the evaluation of fair and unfair offers. To analyze behavioral changes on responses to unfairness, we compared the performance of medicated participants and healthy controls in the Ultimatum Game, both in the proposer and in the respondent role. The results showed that long-term psychotropic users (...) had the worse economic strategy by accepting less offers than control subjects. However, in the proposer role, the unfair offers made by participants were similar between groups. The present results suggest that long-term use of psychotropic medication, specifically the combination of benzodiazepines and antidepressants, may increase the sensitivity to unfairness, resulting in higher rejection rates in conditions where this strategy is the most disadvantageous. (shrink)

People experiencing similar conditions may make different decisions, and their belief systems provide insight about these differences. An example of high‐stakes decision‐making within a complex social context is the Arab Spring, in which large numbers of people decided to protest and even larger numbers decided to stay at home. This study uses qualitative analyses of interview narratives and social media addressing individual decisions to develop a computational model tracing the cognitive decision‐making process. The model (...) builds on work by Abelson and Carroll (1965), Schank and Abelson (1977), and Axelrod (1976) to systematically trace the inferences connecting beliefs to decisions. The findings show that protest decisions were often based on positive emotions such as pride, hope, courage, and solidarity, triggered by beliefs about successful protest and self‐sacrifice. By contrast, decisions to stay at home were triggered by beliefs about safety, state approval, and living conditions. As one participant said, “When I heard about the revolution in Tunisia, my heart was filled with solidarity for the people.” In the words of a non‐participant: “When people are killed, we must be careful. There are more important things than protest: safety and stability.” This study of individual explanations about events identifies the role of emotions in high‐stakes decision‐making within complex social environments. (shrink)

The use of algorithms to support prediction-based decision-making is becoming commonplace in a range of domains including health, criminal justice, education, social services, lending, and hiring. An assumption governing such decisions is that there is a property Y such that individual a should be allocated resource R by decision-maker D if a is Y. When there is uncertainty about whether a is Y, algorithms may provide valuable decision support by accurately predicting whether a is Y (...) on the basis of known features of a. Based on recent work on statistical evidence in epistemology this article presents an argument against relying exclusively on algorithmic predictions to allocate resources when they provide purely statistical evidence that a is Y. The article then responds to the objection that any evidence that will increase the proportion of correct decisions should be accepted as the basis for allocations regardless of its epistemic deficiency. Finally, some important practical aspects of the conclusion are considered. (shrink)

Academic and public debates are increasingly concerned with the question whether and how algorithmic decision-making may reinforce social inequality. Most previous research on this topic originates from computer science. The social sciences, however, have huge potentials to contribute to research on social consequences of ADM. Based on a process model of ADM systems, we demonstrate how social sciences may advance the literature on the impacts of ADM on social inequality by uncovering and mitigating (...) biases in training data, by understanding data processing and analysis, as well as by studying social contexts of algorithms in practice. Furthermore, we show that fairness notions need to be evaluated with respect to specific outcomes of ADM systems and with respect to concrete social contexts. Social sciences may evaluate how individuals handle algorithmic decisions in practice and how single decisions aggregate to macro social outcomes. In this overview, we highlight how social sciences can apply their knowledge on social stratification and on substantive domains of ADM applications to advance the understanding of social impacts of ADM. (shrink)

Poor ethical decision–making costs industry billions of dollars a year and damages the images of corporations. Thus, by answering the question ‘Why do individuals behave as they do when confronted with ethical issues?’ ethical theory can provide businesses with a means to create a more ethical climate and a more successful operation. This study tested the Ethical Decision–Making Model with accountability (Beu & Buckley 2001), which uses theory that suggests that ethical behavior is influenced by the (...) individual, the issue, social relationships (accountability), and the organization in which the employee is embedded (Brass, Butterfield & Skaggs 1988; Frink & Klimoski 1998). The results showed that individuals’ thought processes (cognitive moral development), personalities (locus of control, hostility and aggression, Machiavellianism), and gender influence how they respond to ethical dilemmas, as well as the salience of the moral issue (moral intensity) and the environmental context (work/school). (shrink)

Poor ethical decision–making costs industry billions of dollars a year and damages the images of corporations. Thus, by answering the question ‘Why do individuals behave as they do when confronted with ethical issues?’ ethical theory can provide businesses with a means to create a more ethical climate and a more successful operation. This study tested the Ethical Decision–Making Model with accountability (Beu & Buckley 2001), which uses theory that suggests that ethical behavior is influenced by the (...) individual, the issue, social relationships (accountability), and the organization in which the employee is embedded (Brass, Butterfield & Skaggs 1988; Frink & Klimoski 1998). The results showed that individuals’ thought processes (cognitive moral development), personalities (locus of control, hostility and aggression, Machiavellianism), and gender influence how they respond to ethical dilemmas, as well as the salience of the moral issue (moral intensity) and the environmental context (work/school). (shrink)

This paper is an attempt to understand how social knowledge affects human economic decision making. The paper discusses the nature of social knowledge in today’s context with special reference to how social knowledge influences consumers’ sentiments and their economic decisions. Social networks are being continuously flooded with various kinds of information and disinformation. Some of the information becomes knowledge for social network users who browse various kinds of content that are either entertaining or (...) related to products and marketing. Although reliability remains a critical issue regarding online information from social networks, it, however, provides some knowledge about diverse things, goods, and products being in use in different societies around the world. Some products advertised on social networks like Facebook may affect consumer decisions or provide information about new products. This paper presents a formal discussion on what social knowledge is and how it is originated, and what use it might have for such consumers. The paper designs a simplistic mathematical model for a theoretical understanding of the assumption that has practical implications regarding its utility in society. It is found that social networks generate enough social information that can influence user choice and preferences. The study has implications for both the users and the developers of social networking sites. (shrink)

This study attempts to refine and test a theory of social influences on ethical decisions of journalists. The theoretical model proposes that several social factors influence any given decision, and that a hierarchy of influences assigns relative value to each: individual, small group, organization, competition, occupation, extramedia, and law. Print and broadcast journalists reacted to 3 hypothetical scenarios that raised ethical problems. The journalists then rated the salience of various reasoning statements, each representing 1 of the 7 (...) social influences. No single source of ethical guidance appeared; in many cases different influences emerge as powerful under different circumstances. But of the 7 proposed influences, 5 showed consistent strength in predicting the decision the journalist makes. The individual influence was the weakest of the 7, despite its prominent strength in the literature. The organizational and small-group strength suggests company-level strategies for media policy-makers who wish to increase journalists'ethical awareness. Overall, the study seems to challenge a traditional assumption that in ethical dilemmas journalists are autonomous moral agents, acting on the basis of their own values alone. The data support the notion of a far more dynamic and complex pattern of social influences. (shrink)

This is a new edition of a classic textbook in health care ethics, one that offers an alternative to the principle-based approach from Beauchamp and Childress (Principles of Biomedical Ethics, now in its seventh edition from OUP) and traditional Catholic approaches of Ashley and O'Rourke. In the early chapters Devettere spells out the meaning of ethics and the importance of prudential reasoning in seeking the good life. The rest of the book deals with issues and cases, including determinations of life (...) and death, reproduction and research and genetics, and the distribution of health care. In this fourth edition Devettere updates all chapters and adds new cases and new sections on the following: neuroscience, social psychology, overriding advance directives, studies on the fetus, the palliative care movement, cardiopulmonary resuscitation, pharmacists and reproductive issues, prenatal life and abortion, neonatal testing and mandatory vaccinations, the US governments' STD research in Guatemala, the emergence of biobanks, facial transplantations, genetic testing, legal issues around the Affordable Care Act, and more. This is an accessible and comprehensive textbook covering all aspects of the field. (shrink)

This paper aims to critically review the existing literature on the relationship between corporate governance, in particular board diversity, and both corporate social responsibility and corporate social responsibility reporting and to suggest some important avenues for future research in this field. Assuming that both CSR and CSRR are outcomes of boards’ decisions, this paper proposes that examining boards’ decision making processes with regard to CSR would provide more insight into the link between board diversity and CSR. (...) Particularly, the paper stresses the importance of studies linking gender diversity and CSR decision making processes, which is quite rare in the existing literature. It also highlights the importance of more qualitative methods and longitudinal studies for the development of understanding of the diversity–CSR relationship. (shrink)

Decision making is a key activity, perhaps the most important activity, in the practice of healthcare. Although physicians acquire a great deal of knowledge and specialised skills during their training and through their practice, it is in the exercise of clinical judgement and its application to individual patients that the outstanding physician is distinguished. This has become even more relevant as patients become increasingly welcomed as partners in a shared decision making process. This book translates the (...) research and theory from the science of decision making into clinically useful tools and principles that can be applied by clinicians in the field. It considers issues of patient goals, uncertainty, judgement, choice, development of new information, and family and social concerns in healthcare. It helps to demystify decision theory by emphasizing concepts and clinical cases over mathematics and computation. (shrink)

Our research’s aim is to assess the effect of cultural factors on business ethical decision-making process in a Western cultural context and in a non-Western cultural context. Specifically, this study investigates ethical perceptions, religiosity, personal moral philosophies, corporate ethical values, gender, and ethical intentions of U.S. and Moroccan business managers. The findings demonstrate that significant differences do exist between the two countries in idealism and relativism. Moroccan managers tend to be more idealistic than the U.S. managers. There is (...) a strong positive relationship between religiosity and idealism. There were mixed findings in examining the correlates of religiosity and various components of ethical intentions. Moroccan managers were more homogenous in their corporate ethical values than were the U.S. managers. The results demonstrate that (in general) idealism is a good predictor of ethical intentions and behaviors. Additionally, managers from the two countries differed in the degree of relationship between perceptions and intentions in three of the four scenarios. This study’s results confirm other research findings that, in general, female business managers have higher ethical sensitivity in terms of their ethical judgment than their male counterparts. Managerial implications are also discussed. (shrink)

We began writing the first edition of this textbook in 2006, soon after a wave of major corporate scandals had shaken the financial world. Headlines made the companies involved in these ethical scandals household names: Enron, WorldCom, Arthur Andersen, KPMG, J.P. Morgan, Merrill Lynch, Morgan Stanley, Citigroup, Salomon Smith Barney. At that time, we suggested that, in light of such significant cases of financial fraud, mismanagement, criminality, and deceit, the relevance of business ethics could no longer be questioned.

The intention of this paper is to point to the dilemma humanity may face in light of AI advancements. The dilemma is whether to create a world with less evil or maintain the human status of moral agents. This dilemma may arise as a consequence of using automated decision-making systems for high-stakes decisions. The use of automated decision-making bears the risk of eliminating human moral agency and autonomy and reducing humans to mere moral patients. On the (...) other hand, it also has the potential to bring tremendous benefits to humanity by decreasing human-induced harm in the world. After presenting how this dilemma may arise, I explore general avenues for addressing it. I will argue that we do not have to solve this dilemma in an all-or-nothing fashion and that a more nuanced approach may be suitable. However, the main point I want to highlight is that we need to have a principled way of addressing this dilemma, which is currently missing. (shrink)

High levels of specialization have created knowledge with little or no “peripheral vision,” and the resulting “blind spots” are causing many “collisions” with human life, society, and the biosphere. Each discipline and specialty must be equipped with a “map” showing its connections to everything else, but especially the negative consequences that tend to be associated with its practices. Preventively oriented practices can improve the ratio of desired to undesired effects of design and decision making to create ways of (...) life that are more sustainable across the board, as opposed to treating symptoms (such as global warming). This new approach has already fired the imagination of many students in engineering. (shrink)

The computer revolution has had an enormous effect on all aspects of the practice of medicine, yet little thought has been given to the role of social media in identifying treatment choices for incompetent patients. We are currently living in the ?Internet age? and many people have integrated social media into all aspects of their lives. As use becomes more prevalent, and as users age, social media are more likely to be viewed as a source of information (...) regarding medical care preferences. This article explores the ethical and legal issues raised by the use of social media in surrogate decision making. (shrink)