Bounded ethicality refers to the idea that ethical choices are limited by internal and external pressures.

• A. Ethical choices are always made after full rational consideration.
• B. Ethical choices are constrained by internal and external pressures.
• C. Ethical behavior is unaffected by context.
• D. People always act ethically when properly motivated.

Answer: (B)

Bounded ethicality captures how ethical decisions aren’t purely the product of perfect moral reasoning; they’re shaped and limited by pressures we face inside ourselves and from the surrounding environment. The statement that ethical choices are constrained by internal and external pressures is the best fit because it highlights that what people deem acceptable or decide to do is influenced by biases, self-interest, and cognitive limitations (internal), as well as norms, incentives, rules, and social dynamics in the workplace (external).

Think about how context can nudge choices even when someone intends to do the right thing. For example, a manager might recognize a moral issue but weigh it against potential career consequences or team reactions, leading to a decision that doesn’t fully align with their stated ethical standards. That illustrates why the idea centers on constraints rather than absolute rationality or universal ethical action.

The other statements don’t fit because they imply extremes that bounded ethicality rejects: ethical decisions aren’t always the result of full rational consideration; context does affect behavior; and motivation alone doesn’t guarantee ethical action since pressures and biases can override good intentions.