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ETHICAL DILEMMA

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ETHICS IS KNOWING THE DIFFERENCE BETWEEN WHAT YOU HAVE A RIGHT TO DO AND WHAT IS RIGHT TO DO. ~ POTTER STEWART THEORY OF RELATIVITY APPLIES TO PHYSICS NOT ETHICS. "HONOR IS BETTER THAN HONORS. PRESIDENT ABRAHAM LINCOLN. To be, or not to be: that is the question: Whether 'tis nobler in the mind to suffer The slings and arrows of outrageous fortune, Or to take arms against a sea of troubles, And by opposing end them? Shakespeare in Hamlet

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ETHICAL DILEMMA IS A MORAL SITUATION IN WHICH A CHOICE HAS TO BE MADE BETWEEN TWO EQUALLY UNDESIRABLE ALTERNATIVES. KEY FACTORS OF ETHICAL DILEMMA THE ALTERNATIVES WOULD GENERALLY CHALLENGE THE GENERAL SOCIETAL VALUES IN RELATION TO THE OUTCOME. THE ALTERNATIVES LEAD TO A CONFLICT OF INNER VALUES. THE BASIS OF DECISION IS GENERALLY THE EFFECT & IMPACT OF THE OUTCOME. INTENTIONS ARE THE INTRINSIC FORCE THAT DRIVE THE PROCESS OF DECISION

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EITHER

DOING WHAT IS MORALLY RIGHT DOING WHAT IS MORALLY WRONG

RESULT S IN

UNDESIR ABLE OR BAD OUTCOME DESIRABL E OR GOOD OUTCOME

OR

RESULT S IN

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TYPES OF MANAGEMENT FROM ETHICAL POINT OF VIEW ARCHIE B CAROLL, IDENTIFIED FOLLOWING TYPES : MORAL, AMORAL & IMMORAL TYPES MORAL MANAGEMENT. WHERE THE MANAGEMENT FOLLOWS ETHICAL CONSIDERATIONS AND DOCTRINES. AMORAL MANAGEMENT. WHERE THE MANAGEMENT INTENTIONALLY/UNINTENTIONALLY IGNORES ETHICAL CONSIDERATIONS. SUCH ACTIONS ARE USUALLY ON ACCOUNT OF COMPROMISE AS A TRADE OFF.

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FACTORS EFFECTING ETHICAL OR UNETHICAL BEHAVIOR

STAGE OF MORAL DEVELOPMENT. INDIVIDUAL CHARACTERISTICS: PERSONAL VALUES. LOCUS OF CONTROL.

ORGANIZATIONAL STRUCTURE. ORGANIZATIONAL CULTURE.

DRIVES ETHICAL OR UNETHICAL BEHAVIOR. INTENSITY OF THE ISSUE: GREATNESS OF HARM. CONSENSUS OF WRONG.

INFLUENCING FACTORS OF ETHICAL DILEMMA IN BUSINESS SHAREHOLDERS/P ROMOTERS

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EMPLO YEES

STAKEHO LDERS

INFLUENCE ON DECISION MAKING

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SHARE HOLDERS/PROMOTERS ROI DEPENDENT OUTCOME CAN DRIVE DECISIONS. DECISIONS CAN BENEFIT S SPECIFIC SECTION OF MANAGEMENT.( FAMILY DOMINATED PROMOTERS) MAY LEAD TO PERSONAL FIEFDOMS, RESORT TO ASSET STRIPPING, SIPHONING OF FUNDS/PROFITS. MANAGEMENT ACTIONS FAVOURING SHAREHOLDERS INTERESTS AT THE COST OF EMPLOYEES. EMPLOYEES POWERFUL UNIONS TAKING MANAGEMENTS TO RANSOM BY HIGH DEMANDS OF BONUS ETC. EXPLOITING THE ASPECT OF PUBLIC NECESSITY.

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REASONS FOR ETHICAL DILEMMA WHEN THE DECSION IMPACTS ON PROFITABILITY AND COMPETITIVENESS. IT HAS A DIRECT EFFECT ON ITS STAKEHOLDERS. ABSENCE OF LINKAGE BETWEEN BUSINESS ETHICS AND FINANCIAL SUCCESS. UNCLEAR AS TO HOW MUCH TO INVEST IN THE ETHICS SYSTEM.

SOURCES OF ETHICAL PROBLEMS FAILURE OF PERSONAL CHARACTER. CONFLICT OF PERSONAL VALUES AND ORGANIZATIONAL GOALS. ORGANIZATIONAL GOALS VS SOCIAL VALUES.

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FAILURE OF PERSONAL CHARACTER. ACTIONS TO FEED PERSONAL GROWTH, GREED , POWER ETC. ACTIONS IN THE GARB OF COMPANY BENEFIT BUT WITH A DEFINITE SELFISH MOTIVE. DEFINITE FALL IN STANDARDS OF ACCEPATABLE BEHAVIOUR AND NORMS. RESORTING TO ILLEGAL ACTIVITIES AS PART OF DEFINITE PLAN WITH CONVICTION.

EXAMPLES:

EXAMPLES FROM THE MOVIE CORPORATE & PAGE 3. THE DECISIONS BY CEO OF SATYAM COMPUTERS. DECISIONS BY ORGANIZING COMMITTEE RESULTING

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CONFLICT OF PERSONAL VALUES AND ORGANIZATIONAL GOALS EMPLOYEES PERCPTION OF VALUE AND ETHICS IS AT VARIANCE. THE PROFESSED VALUE SYSTEM BY THE MANAGEMENT AND THE VALUES SYSTEMS IN PLACE ARE AT CONFLICT. SUCH VARIAANCE MAY OCCUR DUE TO : INTENSIVE COMPETITIVE PRESSURES. EXCLUSIVE FOCUS ON ECONOMIC GOAL. DESIRE TO ACQUIRE/ RETAIN LEADERSHIP POSITION IN INDUSTRY. EXAMPLES: FROM MOVIE CORPORATE CASE OF MANJUNATH AND IOC CORRRUPTION IN INDIA. CASE OF GEORGE COUTO OF BAYER AG IN THE BRINGING OUT THE COMPANY

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PERSONAL BELIEFS AND ORGANIZATIONAL PRACTICES THESE ARE CONFLICTS DUE TO DISCRIMINATORY PRACTICES ADOPTED BY THE ORGANIZATIONS. DISCRIMINATIONS MAY BE OVERT / COVERT, IN TERMS OF CASTE, CREED, COLOUR, RELIGION ETC. PRODUCTION AND SALE OF HAZARDOUS BUT POPULAR PRODUCTS ORGANIZATIONS PRODUCING HARMFUL PRODUCTS LIKE CIGARETTE, LIQUOR, GUTKA, PAN, DRUGS ETC, HAVE TO UNDERGO THIS DILEMMA. DIFFICULT TO DETERMINE WHERE ETHICAL BURDEN LIES WHENIT IS KNOWN THAT PROFIT GENERATION IS ON ACCOUNT OF HARM CAUSED TO THE SOCIETY. EXAMPLES: ITC, UB GROUP ETC.

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WALTONS SIX MODELS OF BUSINESS CONDUCT THE AUSTERE MODEL. THE MODEL GIVES EXCLUSIVE EMPHASIS ON OWNERSHIP INTEREST AND PROFIT OBJECTIVES. LEVEL OF COMPATABILITY: INDIVIDUAL BUSINESS VENTURES LIKE GROCERY STORES . SMES ETC. THE HOUSEHOLD MODEL. THIS MODEL EMPHASIZES THE CONCEPT OF EXTENDED FAMILY . THE FOCUS IS ON EMPLOYEE JOBS, BENEFITS, PATERNALIZATION ETC. THE VENDOR MODEL. IN THIS MODEL, THE CONSUMER INTERESTS, TASTES AND RIGHTS DOMINATE THE ORGANIZATIONS FOCUS. THE INVESTMENT MODEL. THIS MODEL FOCUSSES ON THE ORGAINZATION AS AN ENTITY WITH A LONG TERM PERSPECTIVE OF PROFIT &

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TWO APPROACHES FOR RESOLVNG ETHICAL DILEMMAS DEONTOLOGICAL APPROACH ( ACTION-ORIENTED)

IT IS AN ETHICAL STANDARD CONSISTENT WITH THAT PERFORMED BY A RATIONAL FREE PERSON. THEY INCORPORATE INALIENABLE RIGHTS OF HUMAN BEINGS. THEY ARE FUNDAMENTAL HUMAN RIGHTS SUCH AS RIGHT TO FAIRNESS, EQUALITY,HONESTY, INTEGRITY, JUSTICE AND REPECT FOR DIGNITY. OUTLOOK WHILE ANALYZING AN ETHICAL DILEMMA THE FOCUS IS NARROWED DOWN ISSUES AS MENTIONED ABOVE. THE QUESTION CONSIDERED WILL BE WHICH ACTIONS ARE GOOD? DO THEY RESPECT HUMAN RIGHTS ? DO THEY AVOID DECEPTION, COERCION, MANIPULATION? DOES IT TREAT PEOPLE EQUITABLY? ETC IT IS A RIGID INFLEXIBLE APPROACH STRICTLY BASED ON PRINCIPLES DEVOID OF ANY EMPHASIS ON SITUATION OR COMPASSION. TELEOLOGICAL APPROACH (RESULT ORIENTED) IT IS A PRAGMATIC,COMMON SENSE, LAYMANS APPROACH TO ETHICS. IT IS BASED ON THE PREMISE THAT ACTIONS THAT PRODUCE MORE BENEFIT THAN HARM ARE RIGHT.

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ANALYSIS OF TWO APPROACHES

ONE SCHOOL OF THOUGHT POINTS TO ACTION, THE OTHER FOCUSSES ON OUTCOME OR RESULTS. BETWEEN THEM THERE IS WIDE SPECTRUM OF INTERNAL AND EXTERNAL FACTORS OF HUMAN ACTIONS AND MORAL CONSEQUENCES. THEY APPEAR CONTRADICTORY IN THEORY BUT COMPLIMENTARY IN PRACTICE. BOTH ACT AS A CHECK ON EACH OTHER. IN THE PROCESS OF IDENTIFYING PRAGMATIC SOLUTIONS BOTH NEED TO BE CONSIDERED.

THREE STEPS TO RESOLVE ETHICAL DILEMMAS

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STEP I : ANALYZE CONSEQUENCES WIDE ARRAY OF CONSEQUENCES BOTH POSITIVE AND NEGATIVE TO BE EXAMINED. SOME QUESTIONS TO BE ANSWERED ARE : WHO ARE THE BENEFICIARIES? WHO ARE LIKELY TO BE HARMED? WHAT IS THE NATURE OF BENEFIT AND HARM? HOW LONG OR FLEETING ARE THE BENEFITS/HARM? AFTER FINDING ANSWERS TO THIS, THE ONE WAY IS TO IDENTIFY THE BEST MIX OF BENEFITS OR HARMS. STEP II : ANALYZE THE ACTIONS AFTER IDENTIFYING THE OPTIONS, CONCENTRATE

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EXERCISE ON DECISION MAKING

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Values are rules. Morals are how we judge others. Ethics are professional standards.

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