ETHICAL DECISION-MAKING

AND RESOLVING ETHICAL

DILEMMAS – PART B
STUDY UNIT 5
K R ET Z S C H M A R E T A L .
C H A P T ER 1 , 5 , 6 , 11 , 1 4
( S E L EC T I O N )

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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 The golden rule
 Treat others the way you want to be treated.
RECAP
 The platinum rule
 Treat others the way they want to be treated.
ON
 Four criteria against which ethical PART A
decision making has to be assessed to
judge its moral soundness and
acceptability:
 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. 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:

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

• 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
ONE 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.

• Dialogue can produce solutions:

• Dialogue produces inclusive solutions and participants commit to
finding solutions
• Through dialogue, conflicting moral views can be used in a creative
TWO 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…
• Focussing on motives is futile and pointless:
• Focusing on subjective motives does not overcome rivalry and
create solutions
• Motives underlying moral views should not dominate the decision-
THREE making process.
• We use the motives to gain a better understanding of the moral
viewpoints of others.

• 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
FOUR 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. 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. 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