ETHICAL DILEMMA

What is an ethical dilemma?

It is a Conflict between ...

o one’s personal and professional valueso two values/ethical principleso two possible actions each with reasons strongly

favorable and unfavorableo two unsatisfactory alternativeso one’s values/principles and one’s perceived roleo the need to act and the need to reflect

What Causes an Ethical Dilemma in Conducting Business?

o Pressure from Management

o Ambition and Discrimination

o Negotiation Tactics

Can Ethical Dilemma be avoided?

o You can avoid ethical dilemmas!

But...

o You cannot completely avoid ethical dilemmas!

Avoiding Ethical DilemmaThings to Consider ..

o Don't be afraid to push back

o Don't be the frog

o Don't be a privacy buster

o Be a credible leader

Resolving an Ethical Dilemma

o List the alternative courses of options

o Analyze The Consequences

o Analyze The Actions

o Make A Decision

o Evaluate the system

Examples of ethical dilemma in business

The Ford P into

• Ford launched PINTO in 1971• Ford was fully aware of the faulty fuel tank

that often ruptured during rear-end impact.• This measure was taken by the management

for just cost problem.

• 25mph+ the gas tank would rupture in an accident• 30mph+ rear endings would cause the gas tank to

leak and the rear of the car to be folded up into the back seats

• 40mph+ the car doors would jam

Testing found several safety defects

Cost Benefit AnalysisWith Current Gas Tank With Safety Alteration

180 burn deaths Cost = $11 per vehicle

180 serious burns Total = $137 million

2100 Pintos burned

Costs = $200 000 per death

$67 000 per serious injury Second alternative = Rubber Bladder

$700 per car Cost = $5.08 per vehicle

Total = $49.5 million Total ~= $64 million

Were they morally responsible to refuse to produce a car they knew

would hurt the customer?

Were they responsible for the safety of customers?

Examples 2• Uber taxi service• Drivers are not allowed to drive for lyft

Examples 3• MBA course for admission purposes.

Conclusiono It is in an organization's best interest to provide ethical training to its

employees, to help them identify unethical behavior and give them

tools with which to comply.

o Every company should have an ethical policy that spells out its

penalties for infractions.

o Moreover, management must lead by example, showing that the

company takes ethics seriously and that violators will be punished

according to the organization's policies, including possible suspension

or termination.

Thank You