Managing Business - Ethical Dilemmas Case Studies

ETHICAL DILEMMAS



Choices in life are rarely simple .



We normally do not have situations which are to our likings.



Many times we are under the control of others, whose values may not be consistent with yours .



Many such are examples of dilemma.

What should you do when you have a value conflict? - You are against bribes. - You have to get a dead body released from the morgue; the relatives are disturbed; the priests have expressed that the last rites be completed before sunset.

-You have to seek professional admission; one certificate is held back for ostensible reason. You are a staunch critic of corruption.

-What should a doctor do: He knows that the girl getting married to his close friend has problems that would harm the marriage relationship? Should he tell his friend by breaking the professional relationship.

- Bankers and lawyers face similar dilemmas. You find the organisation you are working is doing an anti social activity. Blow the whistle? Do you keep quiet and risk society or complain and risk the job?

-You find your immediate boss using the facilities available for his personal ends. Should you report to the higher ups?

- Were the Army officers who joined the Indian

National Army of Netaji Subhas Chandra Bose right?

duty to the country is greater or duty to the oath of office

We are talking of high ethics and high profits Organizations with high ethics and low profits do not survive Organizations with low ethics and high profits should not survive Calls for tough minded fairness Hands-on management

Do you have a right to rebel against an unreasonable officer, a sadist, like the one who ordered the annihilation of the Jews in the HITLER’s Army OR is it right to obey the orders?

Can the Tamil soldiers join the LTTE or sympathise with the movement and refuse to fight?

Many such dilemmas exists why – there is a choice or OPTION. TO DO or NOT TO DO

If there is no choice, there is NO PROBLEM

 If it is not possible to resolve the dilemma, you are a

compromiser.  You should recognise the ethical issues and think through

the consequences of alternative resolutions.  You need CONFIDENCE to seek out different points of

VIEW and also tough minded fairness.

A dilemma arises when an action favours ONE and harms the others.

 We said “concern for others must take

precedence over concern for SELF”.

the issue could be others meaning : *Community *Family *Society *Country and so on.

 The simple rule recommended is, bigger

unit should get precedence over smaller units.  Like our cricketers had refused to play in

South Africa inspite of generous money offers because of policy of Apartheid.

 Long term interest should get precedence over short

term.

 Building a dam for water and electricity versus

unsetting people living there.

 Development of a new technology, without the use of

CFCs for cooling in refrigerators and air conditioners

The development interest should get precedence over short term.  We have to follow a system concept

which recognises that a functional unit is a part of a bigger unit and comprises of smaller units.

self other individuals family community society national world universe

ORDER OF IMPORTANCE

 In a human body we have a number of sub system be

if it -

- circulatory -nervous -digestive -respiratory  While each sub system is a complete one, none can

exist, if the body does not function.

What is true of the human body, is true of the individual and the environment?

 Part of the family

• the organisation for which he works • the community • the society

 When there is a conflict between an

individuals interest and the interest of the bigger system the latter should prevail.

 As a member of a system, one does not and cannot have

the freedom to do as one likes to do purely as per dictates of ones conscience.

 In a family one has to make adjustment.  There is a discipline one follows

-may be meal timings and eat together to maintain cohesiveness.  Failure creates frown.

 Value differences which seek to prevent one

from pursuing ones interests.  In the by gone days Govt. jobs was much sought

after.  Some could feel them as insurance.  Now youngsters get into private businesses, even

consultancy or freelance business.

Tamper with records with connivance

 A certain material with a different mix was imported at

$2 per kg versus $12 for the standard.

 The custom refused to clear, they were able to settle at

50,000, Co did not accept.

 Co. went to court .  They won but paid Rs3 Lakhs as demurrage and had to

buy from the local market supplies @ $14.

Harassment of customs however continued  An MNC which refused to contribute to a

trust set up by a senior political leader had his project delayed by 9 months.

Resolving dilemmas  In real life the dilemmas do not provide

very clear alternatives. GIFTS - Chocolates to extravagant.

 A sincere and competent worker catches a

debilitating disease.  Is it alright to retire him from service pay

him dues and ex-gratia?

 Should his wife or son or daughter be given an

employment so that his family does not suffer?  Is relationship between employer employee only

one of employment conditions or goes beyond quality of life?

Does the employer have an obligation to bear costs of man’s illness and family’s suffering? Should a person’s wife be maintenance when she is divorced?

given

When a person falls sick should he investigate connections between disease and the work that he does?

Should company take cognizance of stress in working, assume existence and effects thereof?

Each person has a different way of solving such dilemmas. Many are by rationalisation.  It is not really wrong (ambiguous)  It is not that important  Others will understand  It is expected  It will not be noticed (safety)  I have no choice

 It won’t cause harm  I will be excused  Others are doing it  I am only following instructions  This is my duty  I am not responsible for what is happening

The final test as to whether an action is ethical or not are answers to the following questions. 1. If the answers are all negative, then the chances are you are being ethical. 2. Is it in conflict with values deep religious beliefs? 3. Does it hurt my conscience? 4. Do I feel guilty? 5. Will I feel bad to admit in public?

The question about religious beliefs is important because they form the basis of many values. Conscience is the custodian of values and therefore of ethics. Conscience is never killed. It only goes underground, from where it continues to generate feelings of guilt with serious psychological and physical consequences.

We have an increasing number of dilemmas due to erosion of values Mainly because  Dominance of economic considerations in

the materialistic world  Exposure to much ethnic multi cultural and

plural society depicted in satellite

 Religion has been politicised and loss of faith  Increased influence of western thoughts on younger

generations

 Relative ease of cutting corners  Difficulty in thinking about consequences of alternate

courses

 Lack of toughmindness  Different from rashness or stubbornness.

 Thank you …….