ABSTRACT. The study of decision making has
multiple implications for business ethics. This paper
outlines some commonly used frameworks for under-
standing choice in business. It characterises the
dominant model for business decision making as
rational choice theory (RCT) and contrasts this with
a more recent, naturalistic theory of decision-making,
image theory. The implications of using RCT and
image theory to model decision making are discussed
with reference to three ethical systems. RCT is shown
to be consistent with Utilitarian ethics, but not with
Kantian or Virtue-based ethics. Image theory is
shown to be consistent with each. The paper identi-
fies a number of implications following from this
analysis.
KEY WORDS: ethical decision making, image
theory, rational choice
Justification for examining choice in
ethics
Following Aristotle, to sensibly assign praise or
blame we infer that someone has exercised choice
(Aristotle, NE: III.1–2). To describe an action
as chosen involves more than simply considering
whether action was voluntary (animals act
voluntarily), but in addition implies deliberation,
in other words a process (ibid.). Gaining greater
insight into this process is relevant to our under-
standing of ethics. This applies equally whether
we evaluate our own actions, or other people’s.
As scholars and teachers, it is important for
business ethicists to be aware of some of the most
commonly used frameworks for understanding
choice in business and management. This is
because these frameworks are used at different
stages of decision-making: initial consideration of
the problem, choice of a course of action, justi-
fication for that choice. They may be concep-
tual tools for evaluating or generating options, or
used to select or reject options. They may also
be used to explain a chosen course of action
retrospectively, irrespective of whether they were
the basis for that choice. More generally, a given
framework may form the basis for conceptual-
ising reasons and motives. Many of these frame-
works are restricted to particular domains, and
cannot be sensibly applied to understand complex
ethical problems. In this light, Morgan’s caveat
on metaphor also applies here, “in creating ways
of seeing they tend to create ways of
not seeing”
(Morgan, 1997, p. 348).
Studying decision-making processes can enable
the identification of assumptions, or partial
Decision Making and Business
Ethics: The Implications of
Using Image Theory in
Preference to Rational Choice
Kevin Morrell
Journal of Business Ethics 50: 239–252, 2004.
© 2004 Kluwer Academic Publishers. Printed in the Netherlands.
Dr. Morrell (www.kevinmorrell.org.uk) is a Senior
Research Fellow at the Local Government
Centre, Warwick Business School, University of
Warwick, Warwickshire, where he is carrying out
research into leadership in the public sector.
He is also ESRC Postdoctoral Research Fellow
at Loughborough University Business School,
Loughborough, Leicestershire, and recently
finished working on a Department of Health
funded research project at King’s College, London.
His main interests are in the broad subject areas
of Organisational Behaviour (OB) and Human
Resource Management (HRM); particularly in
careers, choice and ethics.