Final answer:
Moral sensitivity is the element of James Rest's ethical decision-making model that involves recognizing the moral component of an issue. It is the first step in ethical decision-making.
Step-by-step explanation:
Recognizing that the issue has a moral component represents the element of moral sensitivity in James Rest's ethical decision-making model. Moral sensitivity is the ability to detect and evaluate the ethical aspects of a situation, which is the first step in ethical decision-making. Being sensitive to moral issues involves understanding how one's actions can affect others, recognizing potential ethical conflicts, and being aware of possible courses of action.