ETHICAL DECISION-MAKING

AND RESOLVING ETHICAL

DILEMMAS – PART B
STUDY UNIT 5
KRETZSCHMAR ET AL.
CHAPTER 1, 5, 6, 11, 14
(SELECTION)

Presented by:
MS ELIZABETH RITHO (CA)SA
Honours Chartered Accountancy
 Study material & Learning outcomes
Study material
Kretzschmar et al. Chapter 1, 5, 6 & 11.
Kretzschmar et al. Chapter 14 (selection)
Learning outcomes
On completion of this study unit you should be able to:
Identify and distinguish between personal and social ethical dilemmas.
Discern ethical issues, identify possible options, determine the
possible impact of decisions on stakeholders and make ethically sound
decisions against ethical criteria.
Generate creative solutions for moral dilemmas by applying a suitable
strategy for resolving ethical problems.
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Four criteria against which ethical decision
making has to be assessed to judge its moral
soundness and acceptability:
A
1. Is it legal?
2. Does it meet the company standards?
3. Is it fair to all stakeholders?
4. Can it be disclosed?
The 5 tenets:
1. The utilitarian approach
2. The deontological approach
3. The fairness and justice approach
4. The common good approach
5. The virtue approach
PART B – RESOLVING
ETHICAL DILEMMAS
 1. OVERVIEW
A “moral or ethical dilemma” arises when an ethical consideration of a situation
produces two or more conflicting judgements. It is where one is confronted with
contradicting moral choices, but is uncertain which option is the right/best to
follow.
There are two types:
1.

1.

1. Personal moral/ethical dilemmas: the ethical conflict is within the person,

e.g. when a choice may have both good and bad consequences.
2. Social ethical dilemmas: the ethical conflict is between different
individuals, groups or parties. It can also be referred to as a clash of
convictions revolving around the right thing to do. In a previous class it was
said that something like affirmative action can for example become a social
dilemma if some people believe that it is good whilst others believe it is
unfair.
Also note that a large group of interested parties need to be involved before it is
a social dilemma.
NB: Resolving ethical dilemmas should be distinguished from the process of
ethical decision-making.
No obvious solution to ethical dilemmas exist, however, there are ethical
dilemma solution strategies. One of them = RIMS
 2. RIMS STRATEGY
RIMS – “Rational Interaction for Moral Sensitivity”
This strategy begins with “rational interaction” – which is the basis.
This refers to a rational debate between individuals with two or more rival views on a
moral dilemma. The rival points should be presented, analysed, and discussed in a
rational and tolerant manner. Meaning that:

Each party should tolerate and show respect to the views of the other party in
order for all parties to contribute towards the best resolution for a dilemma.
In order to derive at a ethical decision, all the parties need to allow the other party
the freedom to express their own view points and they should also afford the
opportunity for the other party to criticise views.
If not rational than irrational (violence/one-sided decision) or suspend dispute (no
solution).
All parties have to interact to determine the best solution. It is not up to one party or
person.
Is it always easy to have rational interaction?
What hinders rational interaction?
We will therefore first look at the assumptions that the RIMS strategy is based on. After
the basis has been established a moral decision can be made using 3 basic steps (Will be
discussed later).
 UNDERLYING
ASSUMPTIONS
 2.1. RIMS STRATEGY - ASSUMPTIONS
RIMS is based on the following FOUR underlying assumptions:

ON Dissensus (i.e. moral dissensus) does not equal defeat:

E People are from diverse multi-cultural and multi-religious
societies, hence judgement about what is ethically right differs
Interaction between people with rival moral viewpoints is
necessary and important to determine morally sensitive solutions.
With proper structure, interaction based on dissensus is an
important source of determining creative solutions that are
inclusive.

TW Dialogue can produce solutions:

O Dialogue produces inclusive solutions and participants commit to
finding solutions
Through dialogue, conflicting moral views can be used in a
creative way to produce morally sensitive solutions to moral
dilemma. (Talk it out. State your views)
There are preconditions for useful dialogue
 2.1. RIMS STRATEGY –
ASSUMPTIONS…

THRE Focussing on motives is futile and pointless:

E Focusing on subjective motives does not overcome rivalry and
create solutions
Motives underlying moral views should not dominate the
decision-making process.
We use the motives to gain a better understanding of the moral
viewpoints of others.

FOUR Only moral arguments are allowed:

An argument should display a concern and respect for the
interests of others and should not be selfish.
If the points of view are unethical and immoral, it should be
disregarded.
STEPS FOR MORAL
DECISION-MAKING
USING THE RIMS
 2. THE RIMS STRATEGY…

The 3 basic steps for moral decision-making using the RIMS

strategy
STEP 1:
Generate and
evaluate all
viewpoints

STEP 2: Identify
the implications
or concerns in
all viewpoints

STEP 3: Find a
solution
 STEP 1: GENERATE AND EVALUATE ALL VIEW
POINTS

All parties should state their viewpoints and these should be evaluated
to determine if they are moral.
It earlier said that only moral arguments should be considered.
A moral point of view satisfies the following 3 criteria:
1.

1. It should be a moral argument and not selfish

2. It should be clear and intelligible to all.
3. It should be factually correct
STEP 2: IDENTIFY THE IMPLICATIONS OF VIEW POINTS

For all view points – determine the negative as well as positive

implications or concerns. Disregard the motives.
Isolate the positive implications or concerns from the negative ones
and list them.
In determining the best solution for the ethical dilemma emphasis
will be placed on retaining the positive implications and
eliminating the negative implications.
 STEP 3: FIND SOLUTIONS

After all viewpoints have been evaluated and their implications

considered, the decision reached should minimise or eliminate negative
implications.
All the parties should work together to provide proposals in order to
arrive at the solution which best suites all relevant parties.
There should be solutions for all the negative implications or
concerns.
When determining solutions for the negative implications or concerns,
make sure that the positive implications still exist.
PRACTICE QUESTION

Gripping Audit Inc.

 Conclusion

Ethical decision-making involves determining solutions

to an ethical situation which are ethically/ morally sound
as it meets the 4 criteria.
A moral dilemma can be resolved through the
implementation of the RIMS strategy (3-step process,
based on 4 assumptions) which is based on rational
interaction, where the decisions derived at has to be
inclusive and all affected parties should contribute to
determining the best solution.
 HOMEWORK

1.

1. Work through Kretzschmar et al. CHAPTER 1, 5, 6

2. Work through the examples in the textbook (CHAPTER 6)
3. Pearson Vector Witt question on eFundi