What is an Ethical Dilemma?

An ethical dilemma (ethical paradox or moral dilemma) is a problem in

the decision-making process between two possible options, neither of
which is absolutely acceptable from an ethical perspective. Although we
face many ethical and moral problems in our lives, most of them come
with relatively straightforward solutions.

On the other hand, ethical dilemmas are extremely complicated

challenges that cannot be easily solved. Therefore, the ability to find the
optimal solution in such situations is critical to everyone.

Every person may encounter an ethical dilemma in almost every aspect of

their life, including personal, social, and professional.

How to Solve an Ethical Dilemma?

The biggest challenge of an ethical dilemma is that it does not offer an

obvious solution that would comply with ethics al norms. Throughout the
history of humanity, people have faced such dilemmas, and philosophers
aimed and worked to find solutions to them.

The following approaches to solve an ethical dilemma were deduced:

 Refute the paradox (dilemma): The situation must be carefully

analyzed. In some cases, the existence of the dilemma can be
logically refuted.
 Value theory approach: Choose the alternative that offers the
greater good or the lesser evil.
 Find alternative solutions: In some cases, the problem can be
reconsidered, and new alternative solutions may arise.

 
Examples

Some examples of ethical dilemma examples include:

 Taking credit for others’ work

 Offering a client a worse product for your own profit
 Utilizing inside knowledge for your own profit

How to Handle Ethical Issues in the Workplace

Character and Conscience underlie Ethical Decision Making

Ethical dilemmas in the workplace can be more effectively dealt with if managers
follow a few simple steps:

1. Identify the ethical issues. Ethical issues exist, in a broad sense, whenever

one’s actions affect others. In the workplace, a manager’s decisions might
affect employees, customers, suppliers, creditors and shareholders. These
are the stakeholders of an organization.
2. Identify alternative courses of action.  Every dilemma affords more than just
one opportunity. The cautious handling of workplace ethics issues can
resolve personal and business dilemmas. By identifying the alternatives, the
next step can take place.
3. Using ethical reasoning to decide on a course of action. Ethical reasoning skills
are essential to making ethical decisions. A variety of methods exist
including:

Egoism: Egoism looks at each decision by considering the effects of a decision only

as it relates to the individual decision-maker. Most ethicists dismiss this method
because it fails to consider the consequences on the stakeholders. For example, if a
CEO or CFO is dealing with financial statement reporting and wants the statements
to look as good as possible regardless of the rules and effects on others, then
egoism rules the day.

Enlightened Egoism: This method considers the consequences of alternatives on the

stakeholders but ultimately a decision is made based on what’s in the best interest
of the decision maker. So, a manager would consider the effects on the
stakeholders and may decide that since a particular decision is harmful to the
stakeholders because manipulatation of the financial statements compromises the
validity of those statements, it is in the best interests of the manager to conform
the statements to accounting rules.

Utilitarianism: Here the decision-maker evaluates harms and benefits of alternative

decisions using a calculus/weighting approach. Under act utilitarianism,  the decision
would be to select the act where the benefits to the stakeholders exceed the harms
(i.e., net benefits are greater than any other act I might take).  The problem here is a
decision-maker might weigh the alternative to manipulate the statements as having
greater value than conforming to the rules. An alternative is to apply rule-
utilitarianism  where regardless of utilitarian benefits certain rules should never be
violated, such as always follow proper accounting rules regardless of the
consequences on others.

Rights and Obligations: In this method the decision-maker uses ethical judgment to
evaluate the rights of others (i.e., the investors and creditors). These stakeholders
have a right to expect accurate and reliable financial statements. Correspondingly, I,
as a decision-maker, have an obligation to respect those rights when I select an
alternative course of action. Rights Theory follows a universality approach in that I
would ask, before deciding, whether I would want others in my position to make
the same decision for the same reason if they were faced with a similar dilemma. If
so, my action has universal appeal and should be taken.

Values-based decision making can be a complimentary thought process because

the ethical values to be emphasized in the workplace mirror the rights and
obligations approach. Decision makers should act in accordance with certain
virtues of behavior, or character traits, such as truthfulness, trustworthiness,
respect, fairness, responsibility, objectivity, and integrity. If I am a principled person,
then my actions reflect these virtues and those who rely on my decisions expect to
be treated in accordance with these ethical values.

Ethical decision-making in the workplace is fraught with danger because

stakeholders of an organization may have competing demands. Investors and
creditors expect to receive truthful information while top management may believe
their own personal wealth and image is tied into putting the best face on the
financial statements. It takes courage and perseverance for decision-makers to
avoid the obstacles that may be in play and follow their conscience. Let your
conscience be your guide is as true today as years ago. Of course, we are talking
about people who have the propensity to be ethical; otherwise, their conscience
may not bother them if unethical actions are taken.
Finally, managers should avoid the proverbial ethical slippery slope where once a
decision is made that violates ethical tenets the decision maker starts to descend
the slippery slope and it is difficult to reverse course and reclaim the high road.
Unethical decisions can lead to cover-up and more unethical decisions down the
road. Remember, ethics is about what you do when no one is looking. In other
words, you are what you do and ethical people are motivated to do the right thing,
not make a decision based on selfishness – egoism.

Morality and values-based dilemmas in the workplace are, at best, difficult to handle when
employees have to choose between what’s right and what’s wrong according to their own
principles. Forward-thinking employers who implement workplace ethics policies are usually
well-prepared for the potential conflicts of interest that arise due to the diversity of opinion,
values and culture in the workforce. However, handling ethical issues in the workplace
requires a steady and cautious approach to matters which can potentially be dangerous or
illegal.

Know the Law

Research federal, state and municipal labor and employment laws pertaining to
whistleblowing. Refrain from making employment decisions, such as termination or
suspension, in connection with whistleblowing or an employee’s right to protected
activity under whistleblowing laws or public policy. Seek legal advice for employee
reports of workplace ethics issues that increase your organization’s liability under
federal, state or municipal employment law.

Under the Texas Whistleblower Act, for example, public-sector employees may be
entitled to damages if an employer engages in retaliatory actions based on an
employee who, in good faith, files a complaint related to workplace ethics. This Act
grants "[a] public employee who claims that his suspension, termination, or other
adverse personnel action was in retaliation for his good faith reporting of violations of
the law the right to sue for damages and other relief."

Set Workplace Expectations

Develop a workplace policy based on your company’s philosophy, mission statement
and code of conduct. Incorporate the policy into your performance management
program to hold employees accountable for their actions and alert them to their
responsibilities to uphold professional standards throughout their job performance and
interaction with peers and supervisors. Revise your employee handbook to include the
policy and provide copies of the revised handbook to employees. Obtain signed
acknowledgement forms from employees that indicate they received and understand
the workplace ethics policy.
Train Your Employees
Provide workplace ethics training to employees. Utilize varied instruction methods to
engage employees in learning how to address and resolve ethical dilemmas.
Experiential learning, or role-play, is an effective way to facilitate workplace ethics
training. Examples of workplace ethics simulations involve scenarios about the
misappropriation of company funds, personal values related to improper workplace
relationships and the organization’s compliance with regulatory controls.

Put Someone in Charge

Designate an ombudsperson in charge of handling employees’ informal concerns
pertaining to workplace ethics. Consider whether your organization also needs an
ethics hotline, which is a confidential service employees may contact whenever they
encounter workplace dilemmas that put them into uncomfortable or threatening
positions. Confidential hotlines are an effective way to assure employees’ anonymity,
which is a concern for employees whose alerts are considered “whistleblowing”
actions.

Be Fair When Applying Policies

Apply your workplace policy consistently when addressing workplace issues and
employee concerns about workplace ethics. Use the same business principles in
every circumstance, regardless of the perceived seriousness or the level of employees
involved. Communicate the same expectations for all employees – whether they are in
executive positions or front-line production roles – and approach every issue with
equal interpretation of the company policy.

5 Common Ethical Issues in the Workplace

Unethical Leadership

Having a personal issue with your boss is one thing, but reporting to a person
who is behaving unethically is another. This may come in an obvious form, like
manipulating numbers in a report or spending company money on
inappropriate activities; however, it can also occur more subtly, in the form of
bullying, accepting inappropriate gifts from suppliers, or asking you to skip a
standard procedure just once.  With studies indicating that managers are
responsible for 60% of workplace misconduct, the abuse of leadership
authority is an unfortunate reality.

Toxic Workplace Culture

Organizations helmed by unethical leadership are more often than not

plagued by a toxic workplace culture. Leaders who think nothing of taking
bribes, manipulating sales figures and data or pressuring employees or
business associates for “favors” (whether they be personal or financial), will
think nothing of disrespecting and bullying their employees. With the current
emphasis in many organizations to hire for “cultural fit,” a toxic culture can be
exacerbated by continually repopulating the company with like-minded
personalities and toxic mentalities. Even worse, hiring for “cultural fit” can
become a smokescreen for discrimination, which can result in more ethical
issues and legal ramifications.

Discrimination and Harassment 

Laws require organizations to be equal employment opportunity employers.

Organizations must recruit a diverse workforce, enforce policies and training
that support an equal opportunity program, and foster an environment that
is respectful of all types of people. Unfortunately, there are still many whose
practices break with EEOC guidelines.  When discrimination and harassment of
employees based on race, ethnicity, gender, disability or age occurs, not only
has an ethical line been crossed but a legal one as well. Most companies are
vigilant to avoid the costly legal and public ramifications of discrimination and
harassment, so you may encounter this ethical dilemma in more subtle ways,
from seemingly “harmless” off-color jokes by a manager to a more pervasive
“group think” mentality that can be a symptom of a toxic culture. This could
be a group mentality toward an “other” group (for example, women aren’t a
good fit for our group). Your best response is to maintain your personal values
and repel such intolerant, unethical or illegal group norms by offering an
alternative, inclusive perspective as the best choice for the group and the
organization.

Unrealistic and Conflicting Goals

Your organization sets a goal—it could be a monthly sales figure or product
production number—that seems unrealistic, even unattainable. While not
unethical in and of itself (after all, having driven leadership with aggressive
company goals is crucial to innovation and growth), it’s how employees, and
even some leaders, go about reaching the goal that could raise an ethical red
flag. Unrealistic objectives can spur leaders to put undue pressure on their
employees, and employees may consider cutting corners or breaching ethical
or legal guidelines to obtain them. Cutting corners ethically is a shortcut that
rarely pays off, and if your entire team or department is failing to meet goals,
company leadership needs that feedback to revisit those goals and re-evaluate
performance expectations.

Questionable Use of Company Technology

While this may feel like a minor blip in the grand scheme of workplace ethics,
the improper use of the internet and company technology is a huge cost for
organizations in lost time, worker productivity and company dollars. One
survey found that 64% of employees visit non-work related websites during
the workday. Not only is it a misuse of company tools and technology, but it’s
also a misuse of company time. Whether you’re taking hourly breaks to check
your social media news feed or know that your coworker is using company
technology resources to work on freelance jobs, this “little white lie” of
workplace ethics can create a snowball effect. The response to this one is
simple: when you’re working on the company’s computer on the company’s
time, just don’t do it, even as tempting as it may be.