Ethical Dilemma

There are situations when there is not simple choice between right or wrong. Dilemmas are
complex when managers have no clear guidelines either in law or in religion. Managers are in
fix, predicament, mess, perplexity, difficulty. Choice one is faced is clearly of the “right
versus right sort”.

An ethical dilemma is a complex situation that will often involve an apparent mental
conflict between moral imperatives, in which to obey one would result in transgressing
another. In other words, ethical dilemmas are complex judgements on the balance between
the economic performance & social performance of an organisation.

An ethical dilemma exists when one is faced with having to make a choice among following
alternatives –

a) Significant value conflicts among differing interests,

b) Real alternatives that are equally justifiable, &
c) Significant consequences on “stakeholders” in the situation

Four common Ethical Dilemmas

 Truth versus loyalty

 Individual versus community
 Short – term versus long – term
 Justice versus mercy

Examples of Ethical Dilemmas

Accounting:

Your supervisor enters your office and asks you for a check for $150.00 for expenses he tells
you he incurred entertaining a client last night. He submits receipts from a restaurant and
lounge. At lunch your supervisor’s girlfriend stops by to pick him up for lunch and you
overhear her telling the receptionist what a great time she had at dinner and dancing with
your supervisor the night before. What do you do?
Computers:

In your spare time at work, you have developed a new spreadsheet program on the personal
computer in your office. It is even more powerful, yet easier to sue than anything on the
market. You share your new program with a friend who encourages you to market it on your
own because you could probably make an incredible profit in a very short time. This is a very
attractive option, yet you developed it using company equipment and during time that you
were at work. What do you do?

Personnel:

Your company has a firm policy regarding cases of theft of company property. Used
company equipment is on a table to be sold by bid each month. You see a valued employee
who is 2 months from retirement slip an electric drill from the table and put it in his car
before the day of the sale. What so you do?

Corporate Example

Ethical Dilemma at Coca-Cola

AN ASSESSMENT OF AN ETHICAL DILEMMA AT COCA-COLA RELATED TO

EQUITY IN RETIREMENT COMPENSATION

Is the Ethical Dilemma Facing the Coca-Cola Company Illegal?

The AFLCIO (2003b) describes a situation that is widespread among American corporations
wherein (a) retirement benefits for top executives are inequitable in comparison with
retirement benefits for rank and file employees and (b) excessive retirement benefits for top
executives have been de-linked from company performance. The AFLCIO (2003a) provided
specific evidence linked to selected major American corporations (of which Coca-Cola is
one) of the existence of such inequities.

In the case of Coca-Cola, the AFLCIO describes a situation in which corporate executives at
several levels of the organization receive generous retirement benefit packages, while
offering only limited (and partly self-funded) retirement plans for rank and file employees.
The company's own Proxy Statement for 2003 (Coca-Cola, Inc., 2003b) and Annual Report
for 2002 (Coca-Cola, Inc., 2003a), however, provide details relevant to executive retirement
compensation and employee retirement savings plans that show that the inequities are greater
even that indicated in the AFLCIO (2003a) assessment.

While the company has an ethical dilemma relative to inequity in retirement

compensation benefits, there is little evidence to indicate that the company views the
dilemma in an ethical context. Rather, the company appears to view the dilemma in a
legal context.

How to Resolve Ethical Dilemmas in Business

In the current era of ever-growing competition and limited financial resources, entrepreneurs
and business managers constantly encounter certain dilemmas related to business. Most of the
times, entrepreneurial managers tend to feign away from ethical issues while taking decisions
on dilemmas either due to ignorance or on purpose.

In today’s business, the workforce comprises of people who are diverse in their nationality,
religion, caste, race, age, education and even socioeconomic status. They are all expected to
work together as a team towards the success of the organization. Dilemmas are bound to rise
in issues such as downsizing the staff, pollution control, toxic waste disposal, utilization of
resources, changes in law and technology, issues related to discrimination, employee rights
and even on product quality. All these issues are relatively complex and are difficult to
resolve. Entrepreneurial managers have to rely on their individual judgment while resolving
all these different dilemmas related to business.

However, before making any decision, one needs to be aware of the ethical issues concerned
with the business. There are two different ways of resolving ethical dilemmas in business.
While one approach concentrates on analyzing the practical consequences of the decision,
another approach concentrates on the action.

Ethical resolution of conflicts requires discussion, analysis, problem solving and decision
making. In order to resolve ethical dilemmas, managers need to have interpersonal
communication and negotiation skills, conflict resolution skills and critical thinking. Before
making any decision, one has to analyze all the positive and negative consequences that are
connected with the issue.
 Bibliography

Reference site

http://www.homemorals.com/ethical-dilemma/how-to-resolve-ethical-dilemmas-in-
business.html

http://www.lotsofessays.com/viewpaper/1689134.html

All the sites were accessed on October 19, 2009

Reference book

Bhatia S. K., Business Ethics & Corporate Governance, Deep & Deep Publications, 2007,
Chapter – 8, pp. 43-44.

Submitted To: Prof. Dr. A. N. Sarkar

Prepared By: Prashant Rampuria

Roll No. – 2K81/IB/29