In business and in our personal lives, we are often faced with ethical dilemmas. Most of the time, the course of action to take is clear and we don’t even have to think twice. But sometimes, we are faced with challenging ethical issues that could have significant implications on our own personal or organizational reputations.
I’m sure we all can name at least one ethical dilemma we’ve faced in business. In a highly competitive environment, employees are frequently pressured to increase profits and productivity, perform ahead of schedule or under budget on projects, and be loyal to their organization. These internal and external pressures can lead to unethical decision-making and behaviors that are not aligned with your own personal or professional ethics when greediness or personal gain are put before the organization.
Unethical decision-making can lead to failure within an organization and have implications on its reputation. By fostering a culture that is ethically committed, an organization can more easily sustain and protect itself in today’s competitive environment with internal and external influences.
In April, Mizzou’s football program dismissed one of its players from the team for his behavior off the field. The athlete’s decisions were inconsistent with the expectations of the university and the program. The athlete’s behavior impacted not only his personal reputation, but also had implications for the reputation of the university, the program and his teammates. Coach Gary Pinkel defended his decision by stating that he had “to protect the integrity of the program.”
More recently, General Motors has been under scrutiny for its significant vehicle recalls. GM’s CEO Mary Barra has quickly led the organization to transparency regarding all quality and safety issues. While GM’s recent recalls are impacting the company’s profits, Barra is focused on establishing a culture of trust with stakeholders and moving forward to address the concerns of stakeholders.
The Mizzou and GM examples are just two recent stories about ethical decision-making that have come to the media’s attention. But what about the ethical dilemmas that surface in our professional and personal lives on a daily basis? How should we determine the best course of action to take when faced with an ethical dilemma?
Here are six questions to consider when deciding the “right” thing to do:
1. First and foremost – Is it legal?
This question may seem like a no brainer, but sometimes judgment can be clouded by internal and external pressures. No matter what course of action you choose to take, it should be legal.
2. Who are your stakeholders and how might your actions affect them?
It is critical to recognize the obligation you have to your organization’s stakeholders. Think about the stakeholders involved and their expectations for you and your organization.
3. Have you assessed the risks associated with your actions?
Every decision has short-term and long-term implications. You must explore the risks associated with your actions and the impact of your decision. Sometimes, I find it easiest to weigh the pros and cons of the possible outcomes.
4. How does your organization expect you to represent them?
As an employee, you are expected to uphold the highest standards professionally and act consistent with your organization’s goals. An organization’s values and codes of conduct help to guide you in your actions.
5. Can you defend your actions should the information become public?
When facing an ethical dilemma, you must be comfortable with defending the course of action you chose to take to both internal and external stakeholders. With social media and technology, information could be made available at any time – not just in the present but also in the future. You have to make a decision that will protect yourself and your organization’s reputation.
6. Are your actions aligned with your own personal ethics?
Most importantly, never compromise your own personal ethics. While you have an obligation to your organization, you want to be able to sleep at night and know you made a decision you can live with going forward.
When faced with an ethical dilemma, what questions do you ask yourself to help guide your decision-making?
