Introduction
The profession of business ethics has long needed a highly practical resource that is designed particularly for leaders and managers. However, far too many resources about business ethics end up being designed primarily for philosophers, academics and social critics. As a result, leaders and managers struggle to really be able to make use of the resources at all. This guide is a straightforward and highly practical tool designed to help leaders and managers implement comprehensive ethics management systems to deal with the complex, ethical issues that can occur in realities of leading and managing a company(Carter McNamara, MBA, PhD, Authenticity Consulting, LLC, 2022). Therefore, organizations must develop a procedure for dealing with ethical dilemmas as they arise. Ideally, ethical dilemmas should be resolved by a group within the organization. One of the effective methods is an ethical checklist, a ten-step method, and a list of key questions.
Real-to-Life Examples of Complex Ethical Dilemmas
“A customer (or client) asked for a product (or service) from us today. After telling him our price, he said he couldn’t afford it. I know he could get it cheaper from a competitor. Should I tell him about the competitor — or let him go without getting what he needs? What should I do?”
This kind of situation happens almost every day in the modern business world. Suppose that I am the owner of an electric car company. A potential customer asked for a partnership and wants to sign a contract to sell my cars. However, after telling him the price, he said he couldn’t afford it, and its also lower his profit from becoming a dealer. Yes, I probably know he could get it cheaper from one of my competitors. In this case, I believe I will try my best to explain why my products are worth the higher price compared to my competitor's products. But, it is his freedom to choose other products if he only considers as lower prices as possible. I think I would not actively tell him or encourage him to purchase my competitor's products or become a dealer of their products. However, I will tell him there are many cheaper products out there but it is better for his business if he actually understands what the price gap is for. Letting him go without getting what he needs is not what I am going to do. Instead, I will try my best to help him get what he needs because I can earn his trust. I believe it would be worth doing so because doing business is not just a short-term job.
Now, let's take a look at the Ethical Checklist to get a reflection on my response. “1” = not at all; “5” = totally yes
1. Relevant Information Test. Have I obtained as much
information as possible to make an informed decision and action
plan for this situation? 4
The deducted one points are for what he needs. I believe I have to better understand what the potential client is actually looking for and what position he stands before making any suggestions.
2. Involvement Test. Have I/we involved all who have a right
to have input and/or to be involved in making this decision and
action plan? 4
Yes, I think I have to seek more suggestions from my professional team or board of directors to consider a wider range of ideas.
3. Consequential Test. Have I/we anticipated and attempted
to accommodate for the consequences of this decision and action plan on any who are significantly affected by it? 5
Yes, I anticipate and attempt to accommodate for the consequences of this decision and action plan on any who are significantly affected by it which is the loss of a potential deal to build trust.
4. Fairness Test. If I/we were assigned to take the place
of any one of the stakeholders in this situation, would I/we
perceive this decision and action plan to be essentially fair,
given all of the circumstances? 4
If I were assigned to take the place of any one of the stakeholders in this situation, I probably perceive this decision to be essentially fair but not totally fair. Because, my decision may not consider including enough perspectives of the stakeholders.
5. Enduring Values Test. Do this decision and action plan
uphold my/our priority enduring values that are relevant to this
situation? 4
I reckon this decision and action plan somewhat uphold my priority enduring value, "Business build on trust", which is relevant to this situation.
6. Universality Test. Would I/we want this decision and action
plan to become a universal law applicable to all similar situation,
even to myself/ourselves? 4
I think I would probably want this decision and action plan to become a universal policy within my company and applicable to all similar situation, even to myself. However, I still trying to keep some level of flexibility when this action plan does not work for some situations.
7. Light-of-Day Test. How would I/we feel and be regarded
by others (working associates, family, etc.) if the details of
this decision and action plan were disclosed to all to know? 5
I believe I will gain more trust if the details of this decision and action plan were disclosed for my employee and other people to know.
8. Total Ethical Analysis Confidence Score . My total of all circled numbers is 30 which means very confident according to the standard provided(7-14 = Not very confident, 15-21 = Somewhat confident, 22-28 = Quite confident, and 29-35 = Very confident)
References
McNamara, C (n.d.) Complete Guide to Ethics Management: An Ethics Toolkit for Managers. Retrieved from:http://managementhelp.org/businessethics/ethics-guide.htm#anchor26548.
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