ABSTRACT
This chapter considers James Rest's basic ethical decision-making theory that underpins many organizational ethics theories. It also considers theoretical views about how factors in the issue, the individual, and the environment/context influence ethical decision making and behavior in organizations. A discussion of sensemaking-intuition theories of ethical decision making, dual process theory, and the theory of developing ethical expertise in the workplace follow. Since both rationalist and sensemaking approaches to ethical decision making have theoretical, anecdotal, and research support, contemporary scholars are building a consensus around a "two-system" approach for ethical decision making. Human capital is a term that economists use when they refer to employees' knowledge, skills, and abilities that enhance their productivity and their motivations to apply their capacities to meet the organization's goals. The chapter concludes with discussing the implications for educational leadership of these ethical decision-making theories.
