Ethical dilemma

Meaning
An ethical dilemma is a moral situation in which a choice
has to be made between two equally undesirable
alternatives.
It may arise out of failure of personal character, conflict of
personal values and organizational goals, org goals vs
social values etc.
Problem solving situation-decision rules are often vague or
in conflict.
How Ethical dilemma in business
affect the stakeholders
Shareholders are real owners of the company-expect(ROI)
Corporations-opportunity costs-incurred in investing in their firm.
Compensated-dividends,bonuses,bonus shares etc.
Bettering the interest of shareholders-high and dry.
Employees-militant& demand huge bonuses-org.severe losses.
Unions-bonuses,provocation-strikes,declare lock outs-financial loss
Eg:Kerala,West bengal-communist-led militant trade unions;Mumbai
and coimbatore-cotton textile mills-huge workers demands even
when they into losses.
Society-Crs,competitors,suppliers,public-pay their suppliers on
time;due instalments of capital and int in time;partnership
relationship with their distributors-benefit from channel partnership.
 Types of ethical dilemma
Face to face ethical dilemma
▪ This arises mainly because of human element at work
▪ People make social interaction and relation at work
▪ These informal relations create certain type of expectations.
▪ However,org has specific expectation of org and of social relations oppose each other,we say
there is face-to-face dilemma.
Corporate policy ethical dilemma
▪ Managers have to certain policy decisions based on the corporate policy or corporate directive
that might seem to be unethical or that might increase the scope of being misused.
▪ Manager has to make policy decision.At the time when manager feels that the policy made by
him is unethical or which might result in an unethical practise in future than such is known as
corporate policy ethical dilemma.
Functional area ethical dilemma
▪ Manager perform wide rage of functions in the org.
▪ These functions sometimes have unethical choice associated with them or the choice is equally
bad at that time what the manager feels is called Functional area ethical dilemma.
 How to solve an ethical
dilemma
Refute the paradox-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 offer greater
good or lesser evil
Find alternative solutions-In some cases,the problem can be
reconsidered,and the new alternative solutions may arise.
Eg: taking credit for others work
Eg:Offering a client a worse product for your own profit
Walton’s six models of business conduct

The Austere model-ownership interest and profit objectives

The Household model-employees jobs,benefits and
paternalism
The Vendor model-interest,tastes and rights dominate the org.
The Investment model-Long term profit and
survival-self-interest
The Civic model-Corporate citizenship-positive commitment
to social needs.
The Creative model-advanced civilizations with better quality
of life;perform as artists,own creative ideas into actions.