1.

Ethical Dilemma
2. An Ethical dilemma is a complex situation that will often involve an apparent mental conflict
between moral imperatives This is also called an ethical paradox since in moral philosophy,
paradox often plays a central role in ethics debates. It is a moral situation in which a choice has to
be made between two equally undesirable alternatives.
3. A production manager, when asked to produce a commodity by his company may face an
ethical dilemma, when he knows that it will harm the large number of consumers who buys and uses
the same. People have no other alternative but to think well and deeply before they make
decisions and once decided, to take the responsibility for such decisions.
4. An ad agent may be asked by the director of a an educational institute to draft an advertisement
for admission stating that since its inception, the institute has 100 percent placement. Through the
advertiser knows it to be untrue, he or she may be prompted to draft and release the blatantly untrue
advertisement due to extraneous factors.
5. His decisions would be results in Either Doing what is morally right Results in A bad outcome or
bad effects Or Doing what is morally wrong Results in Good or at least better effects or outcome
6. Ethical dilemmas in business affect the stake holders Share holders Business balance Employees
Society and others
7. Sources of ethical problems Failure of personal character: Recruiting workers whose personal
values are not desirable, without knowing the workers background. 2. Conflict of personal values
and organizational goals: E.g. Bayer AG, in 2003, hatched a conspiracy to overcharge for the
antibiotic Cipro. Mr. George Couto, a marketing executive of the pharmaceutical giant opposed the
decision and informed the official about the conspiracy. 1.
8. Organizational goals versus social values: e.g. :Johnsons & Johnson cleared all retail shelves of
its Tylenol analgesic within days of the discovery that some containers had cyanide poison traces
and had caused deaths 4. Personal beliefs versus organizational practices: E.g. Religious
celebration 5. Production and sale of hazardous but popular products: 3. e.g. : ITC ltd. Produces
cigarettes and United Breweries Ltd. manufactures and sells liquor. The stopping its operation leads
to mass unemployment.
9. Waltons six models of business conduct 1. 2. 3. 4. 5. 6. The austere model: Emphasis on
ownership interest and profit objectives The household model: Emphasizes on employee jobs,
benefits and paternalism like a concept of an extended family The vendor model: Consumer
interests, tastes and rights dominate the organization. The investment model: Emphasis as the
organization as an entity and thus on long term profits and survival The civic model: Slogan is
corporate citizenship. It goes beyond imposed obligations, accepts social responsibility and makes a
positive commitment to social needs The creative model: Emphasis the organization to become a
creative instrument, serving the cause of an advanced civilization with a better quality of life.
10. How to resolve an ethical problem Utility: Does its benefits exceed cost (Shareholder) Rights:
Does it respect human rights (Society) Justice: Does it distribute benefits and burdens evenly
(employees) Answer to these questions in the affirmative will be the first step in the process of
solving ethical problems.
11. How to resolve ethical dilemmas 1. Analyse the consequences: Who are the
beneficiaries of your action Who are likely to be harmed by your action What is the nature of the
benefits and harms How long or how fleetingly are these benefits and harms likely to exist 2.
Analyse the action: Compare with moral principles such as honesty, fairness, equality, respect for
the dignity and rights others, recognition of the vulnerability of people who are weak. 3. Make
decision