Ethical Dilemmas

An ethical dilemma arises in a situation concerning right or wrong when values are in conflict. Right and wrong cannot be clearly identified.

 When all choices have been deemed undesirable because of potentially negative ethical consequences, making it difficult to distinguish right from wrong.

Five categories of common ethical dilemmas in business Human resource issues Employee safety issues Conflicts of interest Customer confidence Use of corporate resources

Human resource issues

Issues associated with human resources occur as a result of employees working together.

Discrimination Performance appraisals Sexual harassment

Employee safety issues

Every employee is entitled to a safe and healthy work environment. The Occupational Safety and Health Administration (OSHA) was created to ensure safety in the workplace. It is unethical and illegal to force an employee to perform an unsafe task.

Conflicts of interest
Conflicts of interest arise when an employees judgment is compromised due to external influences. These situations present a particular ethical dilemma when the best interest of the employee and the best interest of the company are at odds.

Customer confidence
Product safety Truthful advertising

Use of corporate resources

Ethical use of corporate resources requires that employees be fair and honest to their employers. Using company letterhead. Using supplies. Skewed financial data.

Criteria for Ethical Decision Making

Most ethical dilemmas involve A conflict between needs of the part & whole. The individual versus the organization. The organization versus society as a whole.

Guidelines for Dealing with Ethical Dilemmas

Is it legal? Is it right? Is it beneficial? To whom? How much? Is it harmful? To whom? How much?

1. Would you be willing to allow everyone to do what you are considering? 2. Would you like your family to know? 3. Would you like your decision printed in the newspaper? 4. Have you consulted others who are objective and knowledgeable?

Criteria for Ethical Decision Making

Utilitarian Approach Individualism Approach Moral-Rights Approach Justice Approach

Utilitarian Approach
Moral behaviors produce the greatest good for the greatest number.
Moral behavior produces the greatest good for the greatest number.

Individualism Approach
Acts are moral when they promote the individual's best long-term interests . Acts are moral when they promote the individual's best long-term interests. Individual self-direction paramount. Individualism is believed to lead to honesty & integrity since that works best in the long run.

Moral-Rights Approach
Human beings have fundamental rights (e.g., free consent, privacy, due process) Moral decisions are those that best maintain the rights of those people affected by them.

Moral Rights Considerations

The right of free consent

The right to privacy

The right of free speech The right to due process The right to life & safety

Justice Approach
Standards of equity, fairness, and impartiality.

Making ethical decisions

Factors affecting ethical decisionmaking. First, people are not always objective and rational during the decisionmaking process. Facts are overlooked and consequences might not be considered. Also, there is great uncertainty that exists in the business world.

external influences
family, friends, co-workers, laws and regulations.

The DECISIONS process for making ethical decisions

1 Discover facts 2 Examine issues 3 Consider affected parties 4 Identify solutions 5 Search for consequences 6 Inspect obligations 7 Observe effects on integrity 8 Name potential actions 9 Self-reflect

Discovering facts
What is the dilemma? What historical information is relevant to resolving the dilemma? How did the dilemma occur in the first place?

Examining issues
Dont stop at the first issue and accept it as the only one. During this step, it might be helpful to discuss the dilemma with people you trust, such as friends, family, and co-workers.

Considering affected parties

Identify the people affected by the dilemma. 1. Does the dilemma affect my department? 2. Does the dilemma affect other employees, supervisors, or departments? 3. Does the dilemma affect the entire organization? 4. Does the dilemma affect our customers? 5. Does the dilemma affect our suppliers? 6. Does the dilemma affect the industry of which my organization is a part? 7. Does the dilemma affect the local community?

Identifying solutions
Next, try to outline possible solutions to the dilemma. You should always consider at least two possible solutions, and often, there will be several more. List as many as you can, even those that dont seem ideal at first glance.

Searching for consequences

predict the consequences each affected party will face as a result of each potential solution. There can be numerous consequences for each party.

Inspecting obligations
Obligations are the commitments, made directly or indirectly, that influence the dayto- day decision-making process

Observing effect on integrity

Determine how each possible solution will affect your character and integrity

Naming potential actions

determine which of the remaining possible solutions make sense when considering the affected parties, obligations, consequences, and your character and integrity. You should also consider any new possibilities that have come up during the decision-making process.

Self-reflection
Instincts provide us with empathy and intuition, which cannot necessarily be modeled by an objective thinking process.