Ethical Issues
Ethical Issues
Dilemmas
Ethical Issues
General in nature
Easier to identify the point of conflict
Concern a single situation or stakeholder
Choice has to be made between right and wrong
The decision-maker is generally assumed to know what is the right
action.
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Ethical Dilemmas
Dilemmas arise out of specific situations, problems and circumstances.
Difficult to identify the points of conflict.
May have much broader implications for a number of stakeholders.
Choice has to be made between several “correct” or “right”
alternatives, each with its own set of consequences.
The decision-maker may not have the knowledge of all the possible
consequences of all available choices.
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More on Ethical Dilemmas
Significant value conflict among differing interests
Several alternatives that may appear equally justified:
◦ Truth versus Loyalty
◦ Individual versus Community
◦ Short Term versus Long Term
◦ Justice versus Mercy
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Dimensions of Ethical
Dilemmas
Extent of decision’s effect on number of stakeholders
Rarely is there a yes or no option; several options may be available.
Ethical decisions may have mixed outcomes: social benefits, costs,
revenues, expenses may all be affected.
Element of uncertainty of consequences. Results cannot be predicted
scientifically.
Almost all ethical dilemmas have a personal implication.
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Approaches to resolving
Ethical Dilemmas
End based thinking, or Utilitarian Approach
◦ Do what will give most benefit to most people
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9 Steps Method of Resolving
an ED
1. Recognize the moral aspect and define the problem.
2. Determine who is affected by the decision; your role.
3. Gather the facts; analyze them.
4. Test right versus wrong issues. Rule versus fairness.
5. Test right versus right paradigm, truth versus loyalty etc
6. Work through all four approaches
7. Investigate if there is any other way out
8. Make decision, take action.
9. Revisit and reflect when a need arises.
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11 Steps Method
1. Define the problem.
2. Determine if it is an ethical issue or business problem
3. Isolate the ethical dimension of the problem from the technical or
legal dimensions.
4. Is it right versus wrong, or matter of conflicting interests
5. Who can help: technically and ethically
6. Is it a personal, departmental, company, industry or social problem?
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11 Steps Method (contd.)
7. Who is/are affected party or parties?
8. Tabulate available alternatives; reduce them to manageable few.
9. Weigh the alternatives
10. For each alternative ask yourself: is it legal, is it moral, is it offensive
to any stakeholder?
11. Ask yourself how it makes you look. Does it correctly reflect the
kind of person/company you are? Can we get away with it is not a
consideration.
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Guidelines for Decision-
makers
Question your motives. If it is illegal, unfair or against policy don’t do it.
Practice what you preach; your character should match your actions.
Be your own investigative reporter.
Keep your commitment / promises / undertakings
Learn to say No. If you say No to what you cannot do, you will have time
for what you can do.
Build and maintain your integrity.
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Ethical Decision Making
Behavior
Stage of Moral Development
◦ How mature is the decision-maker? What is his level of social understanding
Locus of Control
◦ Is the decision-maker’s personality independent or subservient to others?
Does he have his own conscience?
Organizational Environment
◦ Decision-makers working in ethical companies can make ethical decisions
more easily.
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Factors Guiding Managers
Their personal code of conduct / ethics
Company policy on the matter
Ethical climate of the industry
State of government regulations
Behavior of colleagues and superiors
Professional managers are more ethical
Larger corporations tend to have better ethical standards
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