3.2.2 Ethical quandaries
Nash (1994) considered that a quick survey of most managers would show that they had participated in, or even directly initiated, at least 20 ethical quandaries and his list below includes 30 situations which pose ethical quandaries for managers.
You may wish to check how many of them you have personally encountered in your career. You may consider that some of these should not be listed as ethical quandaries. Remember, a situation that I may consider to be an ethical problem, you may consider to be downright irresponsible or not worth worrying about. Another interesting thing about this list is its length. Had I been asked to make a list of ethical quandaries, I doubt that I would have been able to compile such a comprehensive list.
Ethical quandaries
- Greed
- Cover-ups and misrepresentations in reporting and control procedures
- Misleading product or service claims
- Reneging or cheating on negotiated terms
- Establishing policy that is likely to cause others to lie to get the job done
- Overconfidence in one's own judgement at the risk of the corporate identity
- Disloyalty to the company as soon as times get tough
- Poor quality
- Humiliating people at work or by using stereotypes in advertising
- Lockstep obedience to authority, however unethical and unfair it may be
- Self-aggrandisement over corporate obligations (conflict of interest)
- Favouritism
- Price fixing
- Sacrificing the innocent and helpless in order to get things done
- Suppression of basic rights: freedom of speech, choice and personal relationships
- Failing to speak up when unethical practices occur
- Neglect of one's family, or neglect of one's personal needs
- Making a product decision that perpetrates a questionable safety issue
- Not putting back what you take out of the environment, employees and/or corporate assets
- Knowingly exaggerating the advantages of a plan in order to get needed support
- Failing to address probable areas of bigotry, sexism or racism
- Courting the business hierarchy instead of just doing the job well
- Climbing the corporate ladder by stepping on others
- Promoting the destructive go-getter who outruns his or her mistakes
- Failing to cooperate with other areas of the company - the enemy mentality
- Lying by omission to employees for the sake of the business
- Making an alliance with a questionable partner, albeit for a good cause
- Not taking responsibility for injurious practices - intentional or not
- Abusing or just going along with corporate perks that waste money and time
- Corrupting the public political process through legal means.
(Source: Nash, LL (1994). Chapter 1 'Why business ethics now?' In Managing Business Ethics. Edited by J Drummond and B Bain. Butterworth: Heinemann, pages 14-15.)
Consider this
Such ethical quandaries are the centre of every manager's and employee's job. Can you add anything to this list? While it is long, it is not exhaustive. You may think of something that is particularly prevalent in your part of the industry.
Many business decisions have an ethical component, and effective managers must add the methods, concepts and ideas of ethics to their managerial tool kit. We engage in some kind of ethical reasoning every day of our lives, but in order to improve ethics we must analyse it. People develop their own common-sense views about what is ethical and unethical behaviour and act accordingly.
Values define a person's beliefs. Ethics is concerned with what is right, what is wrong and with what is your moral duty to your employees, your organisation and society. Determining ethical rights and wrongs is complicated by the fact that moral standards change with time. Different people within the same society have different ideas about what is right and what is wrong. An obvious example is logging in wilderness areas and the different opinions about progress versus preservation.
A common thread in defining ethics is about right and wrong, good and bad actions, and the philosophical reasons for morality outlined by society. Ethics goes beyond the area of law, and provides guidance for resolving moral issues. Managerial ethics are the 'standards' and 'principles' that guide decisions and are based on cultural background.