Professional CIPD Support

5CO02 • AC 1.5

Ethical Perspectives and Decision-making

A detailed study guide to ethical perspectives and how different approaches to ethics can shape people-practice decisions.

What does AC 1.5 ask you to do?

AC 1.5 asks you to assess how ethical perspectives can influence decision-making in people practice. The important word is assess. This requires more than defining ethical theories: you need to examine how different perspectives can lead decision-makers to emphasise different considerations and make a reasoned judgement about their influence.

A strong approach recognises that ethical decisions are rarely reduced to a single rule. People professionals may need to consider consequences, duties, rights, fairness and organisational values at the same time.

What is an ethical perspective?

An ethical perspective is a way of reasoning about what ought to be done. It provides a basis for judging whether an action is acceptable, fair or responsible rather than considering only whether it is efficient, profitable or legally permissible.

Different perspectives ask different questions. One may focus on the consequences of a decision, another on duties or principles, and another on the way people are treated. These differences can lead to different conclusions even when decision-makers are considering the same situation.

Why ethics matters in people-practice decisions

People-practice decisions can affect employment opportunities, pay, development, privacy, wellbeing, progression and the way employees are treated. Their consequences are therefore both organisational and human.

Legal compliance provides important boundaries, but legality and ethics are not identical. A decision can comply with minimum legal requirements while still raising questions about fairness, transparency or the distribution of benefits and burdens.

Ethical reasoning helps people professionals make these considerations explicit rather than allowing them to remain hidden behind operational or financial arguments.

Ethical perspective 1: utilitarianism

Utilitarianism is a consequentialist perspective. It considers an action in terms of its outcomes and generally seeks the option expected to create the greatest overall benefit, or the least overall harm, for those affected.

In organisational decision-making, this can encourage a broad assessment of consequences rather than focusing on one stakeholder. A proposed people initiative might therefore be considered in terms of its effects on employees, managers, customers and organisational performance.

A strength of this perspective is its attention to overall outcomes. A limitation is that an action benefiting the majority could impose a substantial disadvantage on a smaller group. Outcomes can also be uncertain or difficult to compare, particularly when some consequences are financial and others concern wellbeing, trust or fairness.

How utilitarian reasoning can influence a people decision

Suppose an organisation is considering a change intended to reduce costs. A utilitarian analysis would not stop at the expected saving. It would also consider wider consequences such as workload, service quality, employee wellbeing, retention and longer-term organisational effects.

The preferred option would be influenced by the balance of expected benefits and harms. However, the analysis depends heavily on which consequences are included, whose interests are counted and how uncertain future effects are assessed.

Ethical perspective 2: deontological or duty-based ethics

Deontological ethics focuses on duties, principles and the rightness of actions rather than judging an action only by its eventual consequences. From this perspective, some ways of treating people may be considered unacceptable even if they appear to produce a beneficial overall outcome.

In people practice, duty-based reasoning can draw attention to principles such as honesty, consistency, respect, confidentiality and keeping commitments. It asks whether the process and action themselves are ethically defensible.

Its strength is that important principles are not easily sacrificed for convenience. A challenge arises when duties conflict. For example, maintaining confidentiality may need to be considered alongside a responsibility to act when information indicates serious risk.

How duty-based reasoning can influence a people decision

A duty-based perspective may cause a People Team to reject a seemingly efficient option if implementing it requires misleading employees, applying criteria inconsistently or disregarding an important professional obligation.

This demonstrates why ethical perspectives can change the way a decision is framed. Instead of asking only, ‘Which option gives us the best outcome?’, the decision-maker also asks, ‘Are there principles or duties that should govern how we act?’

A further perspective: rights and justice

Ethical reasoning can also focus on rights and justice. A rights-based approach considers whether legitimate individual interests and freedoms are respected. A justice perspective considers fairness in the distribution of opportunities, benefits and burdens, as well as fairness in the procedures used to reach decisions.

These perspectives are particularly relevant to people practice because apparently neutral policies can affect employee groups differently. Fairness does not always mean treating everyone identically; differences in circumstances may need to be considered.

Different perspectives can produce different answers

The value of comparing ethical perspectives becomes clearer when they point in different directions. An option could create a strong overall organisational benefit and therefore appear attractive from a consequentialist viewpoint, while raising concerns about individual rights or the fairness of the process.

This does not mean ethical reasoning is arbitrary. It means decision-makers need to identify the competing considerations, explain their reasoning and justify why particular considerations carry weight in the situation.

Ethics, evidence and professional judgement

Evidence can inform an ethical decision by showing who may be affected, the likely consequences and whether particular groups experience different outcomes. Evidence alone, however, cannot determine which values should take priority.

Professional judgement is therefore required to combine factual evidence with ethical reasoning. The practitioner should also be alert to personal and organisational biases that could make a convenient outcome appear more ethically acceptable than it really is.

Stakeholders and ethical decision-making

Ethical decisions often involve stakeholders with different interests. Employees may focus on fairness and security, managers on operational requirements, and senior leaders on financial or strategic outcomes.

Considering stakeholder perspectives can reveal consequences or concerns that would otherwise be overlooked. It does not mean that every preference can be satisfied. Instead, it supports a more informed judgement about who is affected, how significantly and whether the decision can be justified transparently.

Applying ethical perspectives at Camellia

Camellia’s People Team is considering and addressing several areas of people practice, including recruitment and selection, onboarding, reward, and learning and development. Each can involve decisions that affect different groups and therefore create ethical considerations.

A useful application would select a relevant decision and examine it through at least two ethical perspectives. For example, one perspective might emphasise the overall consequences of an option while another highlights duties, rights or procedural fairness.

The purpose is not to invent an ethical problem that the case does not describe. Instead, demonstrate how applying different ethical lenses could influence the way Camellia evaluates a people-practice decision.

What does strong assessment look like?

A descriptive response might state that utilitarianism focuses on consequences and duty-based ethics focuses on principles. An assessment goes further by showing how these perspectives could change the factors considered, the preferred option or the justification for a decision.

It should also recognise strengths and tensions. Consequence-based reasoning can consider broad organisational impact but may disadvantage a minority. Principle-based reasoning can protect important standards but may become difficult where duties conflict.

A useful pattern is ethical perspective → central principle → influence on the decision → strength or limitation → reasoned judgement.

Common mistakes to avoid

  • Only defining ethical theories without showing their influence on decisions.
  • Treating ethics as the same thing as legal compliance.
  • Assuming one ethical perspective always produces the ‘correct’ answer.
  • Discussing consequences without considering who experiences the benefits or harms.
  • Using ethical terminology without connecting it to people practice.
  • Ignoring conflicts between stakeholder interests or ethical principles.
  • Making claims about Camellia that are not supported by the case information.
  • Describing perspectives rather than assessing their strengths, limitations and implications.

Useful research for AC 1.5

Useful areas for further research include utilitarianism, consequentialism, deontological ethics, rights-based ethics, organisational justice, ethical decision-making, stakeholder theory and professional ethics.

When researching ethical theories, prioritise sources that explain how the perspective guides judgement and discuss its limitations. People-profession resources on ethical practice and professional values can then help connect philosophical principles with workplace decision-making.

Important: use this as study guidance

This resource explains concepts and ethical perspectives relevant to 5CO02 AC 1.5. It is not a completed assessment response. Use it to develop your understanding and then construct your own assessment of how ethical perspectives could influence decision-making in line with CIPD and Study Centre requirements.

Continue exploring 5CO02

← Previous: AC 1.4Next: AC 2.1 →

Return to the 5CO02 resource directory to explore all assessment criterion study guides.