Moral and Ethical Dilemmas Explained

• Lecture is about Moral and Ethical Dilemmas

Ethical Dilemma

• Ethical dilemmas arise when there isn't a straightforward choice between right and wrong.

• They are moral situations requiring a choice between equally undesirable alternatives.

• Moral dilemma is another term for the same situation

• Established societal and personal ethical guidelines may not provide satisfactory solutions.

• Ethical behavior goes beyond legal requirements, concerning discretionary decisions a business makes.

• Organizational/societal ethics are relevant to both individual conduct within an organization and the organization's conduct as a whole.

• Structure of an ethical dilemma:

  • Doing what is morally right results in a bad outcome or effect.
  • Doing what is morally wrong results in a good or at least better outcome or effect.

Characteristics of a Dilemma:

• It is not a simple right vs. wrong choice.
• Has far reaching consequences.
• Has multiple alternatives and mixed outcomes.
• Has Uncertain consequences.
• Has personal implications.
• Decisions are easier when one is not directly involved.

Causes of Ethical Problems:

• Personal Character
• Conflict of Personal and Organizational Goals
• Personal Beliefs vs. Organizational Practices
• Organizational Goals vs. Social Values
• Production and Sale of Hazardous but Popular Products

Framework for Ethical Decision Making (Kidder, 1995):

• Step 1: Describe the problem
• Step 2: Determine whether there is an ethical issue or an ethical dilemma
• Step 3: Identify and rank the key values and principles
• Step 4: Gather information
• Step 5: Review any applicable Code of Ethics
• Step 6: Determine the options
• Step 7: Select a course of action
• Step 8: Put your plan into action
• Step 9: Evaluate the result

Rules for Ethical Decision Making:

• Utilitarian Rule: An ethical decision should produce the greatest good for the greatest number of people.
• Moral Rights Rule: An ethical decision should maintain and protect the fundamental rights and privileges of people.
• Justice Rule: An ethical decision should distribute benefits and harm among people in a fair, equitable, and impartial manner.
• Practical Rule: An ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable.

Ethical Tests:

• Is it legal?
  • Ethical - Legal - (may be considered)
  • Ethical-Illegal - (Difficult)
  • Unethical - Legal - (may be considered)
  • Unethical - Illegal - (Difficult)
• Benefit Cost Test: Do the benefits exceed the costs to whomsoever they accrue?
• Categorical Imperative: Are you willing to allow everyone to practice the proposed action, or do you want to be a special case?
• Light of Day Test: What would be your reaction if the action were made public?
• Do onto Others Test: (Golden Rule) Would you want others to do the same to you? Passing this test indicates ethical approval.
• Ventilation Test: Seek others' views. If others feel it is OK after discussing the 5 tests, the action passes.