 Looping

Unit-3
Ethical Dilemmas, Sources & Resolutions
Outline
• What is an ethical dilemma?
• Sources of ethical behavior
• Code of personal ethics for employees
• How to resolve an ethical problem?
• How to resolve ethical dilemmas?
*Ethical dilemmas are moral situations where choice has made between two equally
alternatives.

often hard to identify because they are specific.

choosing between two "right vs. right" options.

Definition of Ethical Dilemma:
1. There is a significant value conflict among differing interests.
2. There are real alternatives that are equally justifiable.
3. The situation has significant consequences on stakeholders.
*What is an Ethical Dilemma?
 Definition of Ethical Dilemma: An ethical dilemma occurs when a person faces a conflict
between two or more choices, each of which compromises one or more ethical principles, leading to
a potential ethical violation.
 In an ethical dilemma, regardless of the choice made, no matter what he does, he will do something
wrong. This makes it a challenging moral situation.
 Example: Imagine you work as a salesperson. You find an ethical dilemma: Are you reveal a
significant weakness in your product to a customer, even though doing so might negatively impact
sales or the company's interests? disclosing the weakness could be seen as honest and ethical, but it
may harm your job or the company's success. Not disclosing it might secure the sale but could be
considered unethical because you hide crucial information.
 salient features of an ethical dilemma: Uncertain Outcome: It's not clear what will happen as a result
of the choices made.
 Multiple Choices and Alternatives: These choices can make the decision-making process complex.
 Mixed Consequences: Each alternative may have both positive and negative consequences.
 Direct/Indirect Involvement: may require individuals to make decisions that directly or indirectly
impact others
* Sources of Ethical Behavior
 In every society there are three sources of business ethics - Religion, Culture and Law.
Religion: Religion is one of the oldest sources of ethical guidance.
 There are numerous religions worldwide, but they generally agree on fundamental ethical
principles.
 Religions provide guidance on what is morally right and wrong in business and life.
 A common principle across religions is, treating others as you want to be treated.
 Religions emphasize the need for a well-ordered society and social responsibility to contribute to the
common good.
 Each religion often has its own specific code of conduct.
Culture: Culture include shared values, ideas, perceptions, and codes of conduct within a
community.
 Different societies have different cultures, and culture evolves over time.
 Culture is passed from generation to generation
 Culture encourages individuals to commit to something greater than their individual interests.
 Managers must understand and adapt to the cultural context in which their business operates.
Sources of Ethical Behavior (Cont…)
Law: The legal system of a country, that guides human behavior in society.
 Society expects businesses to follow the law.
 However, many businesses engage in illegal activities such as selling poor quality and overpriced
products, and causing environmental pollution.
 Law breaking in business is common
 business must follow the law
 Common approaches and methods for resolving ethical dilemmas in organizations:
 1. End-Based Approach (Utilitarian): This approach focuses on achieving the greatest overall
good or the best outcome for the majority of people involved.
 2. Rule-Based Approach (Universalism): The rule-based approach relies on established ethical
principles, rules, or codes of conduct.
 3. Care-Based Approach: This approach emphasizes empathy, promote the welfare of individuals,
and concern for the well-being of individuals involved in the ethical dilemma.
Code of Personal Ethics for Employees
 Business Code of Ethics: This is a set of guidelines that a company creates based on its
core values.
 It includes the company's mission statement, how employees should handle ethical
dilemmas, and the standards they should meet.
 Individual Code of Ethics: This is a personal set of principles that an individual follows,
often based on their beliefs, values, and background.
 While individual and organizational codes of ethics are unique, they generally reflect
society's common understanding of what is considered morally right and wrong. For
example, not stealing from others is a widely accepted ethical norm.
 Creating a personal code of ethics is valuable because it provides a reference point when
faced with moral uncertainty. It helps individuals make ethical decisions based on their
own values and beliefs.
 * Code of Personal Ethics for Employees (Cont…)
o Respect Confidentiality: Do not disclose or misuse o Environmental and Social Responsibility: Consider the
sensitive information. environmental and social impact of your actions.
o Maintain Professional Standards: Uphold high o Conflict Resolution: Engage in open and respectful
professional standards in all your work. communication.
o Act Ethically: Differentiate between what is right and o Reporting Concerns: Report any unethical behavior or
wrong in your actions. concerns to the appropriate authority within the
o Apply ethical principles in your decision-making organization.
process. o Treat Others Well: Treat others as you want to be
o Honesty : Be honest and truthful in all your treated.
communications. o Give your Best: Always put your best effort and
o Act with integrity in all business dealings.
maintain work-life balance.
o Responsibility : Take responsibility for your actions and
o Self-Improvement: Dedicate yourself to continual self-
decisions.
improvement.
o Continuous Learning and Improvement: Learn from
mistakes and find ways to improve. o Keep Promises: Keep promises and honor
o Follow Laws and Regulations: Follow all relevant laws, commitments.
regulations, and legal requirements. o Uphold Beliefs: Always uphold your beliefs.
o Gratitude: Appreciate life and be grateful every day.
How to resolve an ethical problem?
Step 1: Gather Facts and Identify Problems
• Collect all the facts related to the situation.
• Identify any conflicts of values, rights, or professional responsibilities involved.
Step 2: Consider Ethical Issues
• Reflect on the ethical aspects of the problem.
• Understand the meanings and limitations of these issues.
Step 3: Identify Fundamental Principles
• Recognize which fundamental ethical principles, like integrity, objectivity, confidentiality, self-interest,
self-review, familiarity.
Step 4: Refer to Organizational Policies
• Check your organization's internal procedures and policies.
• Understand how to concerns within the organization and who to involve.
Step 5: Consider Alternatives
• Consider different courses of action, taking into account your organization's policies, laws, universal
values.
Step 6: Implement the Chosen Course of Action
• Act on the ethical decision you've made.
• Keep records of your thought processes, discussions, and actions taken.
• If needed, justify your chosen course of action with written records.
How to Resolve Ethical Dilemmas?
 Two Approaches to Ethical Resolution:
 Deontological Approach (Action-Oriented): Ethical standards are based on the inherent
moral rights of humans. Actions are right or wrong based on their alignment with these
fundamental rights.
 Teleological Approach (Results-Oriented): Ethical judgments depend on whether actions
produce more benefits than harms. Actions that result in greater good are considered
right, while those causing harm are seen as wrong.
 A Three-Step Strategy Combining Both Approaches:
 Analyze Consequences:
 Assess the positive and negative consequences of each option to gain insight into which
option is better.
 Remember, the quality and significance of the consequences matter.
 After all, certain ‘good things’ in life (e.g., health) are more significant than others (e.g., a
new phone).
How to Resolve Ethical Dilemmas? (Cont…)
 Analyze Actions:
 Look at the options from a different angle.
 Determine if any of the actions involved are inherently good or bad.
 Some actions should be avoided, regardless of the potential benefits.
 No matter how much good comes from these bad actions, the action will never be right.
 Make a Decision:
 Combine both approaches to make an informed ethical decision.
 Consider the consequences and the nature of the actions.
 This balanced approach helps determine the best course of action.
 If you're uncertain, talk to knowledgeable individuals to gather different perspectives and
potential solutions.
 Be ready to adapt to new developments in the situation that might require adjustments to your chosen
course of action.
 Afterward, reflect on your past actions and consider how to prevent similar dilemmas in the
future