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Categories of Ethical Dilemmas in Business

First published: Exchange, the magazine of the Brigham Young University School of Business, the following twelve categories were developed to cover the roots or causes of most ethical business dilemmas that one may encounter in one’s work. I’ve summarized them to keep them short and simple.

1. Taking things that don’t belong to you

Taking highlighters out of storage, sending personal letters through the mail room, and downloading unauthorized games to your work computer fall into this category. The CFO of a large company took a taxi from the airport to his home in the city. When he asked the taxi driver for a receipt, he was handed a full blank receipt. Obviously, the dilemma of accurately reporting business expenses doesn’t just affect one employee.

2. If you say things you know to be untrue

If a car dealer insists to a customer that a used car has never been in an accident, there has been an ethical breach. When a salesperson in a store assures a customer that a product has a money-back guarantee when only exchanges are allowed, another ethical violation (and perhaps a violation of the law) has occurred.

3. Creating or permitting false impressions

There is an urban legend in which they sold 2 CDs in a TV commercial that claimed all the hits of the 1980s were on the CD. The infomercial emphasized over and over that all the songs were performed by the original artists. When they received the CDs, upon closer inspection, they found that all the songs were covered by a band called The Original Artists. Although technically true, the impression created by the infomercial was false.

4. Buying influence or participating in a conflict of interest

When a company awards a construction contract to an organization owned by the attorney general’s brother, or when a county committee tasked with selecting a new road construction company tours the state’s roads at the expense of one of the bidders. , a conflict of interest occurs that may affect the outcome of the election.

5. Withholding or Disclosure of Information

For example, failing to disclose information from the results of a new product safety study or choosing to take the company’s own product information to a new workplace falls into this category.

6. Exploitation of unfair advantages

Have you ever wondered why there are so many product safety rules and procedures? This is primarily the result of laws enacted by government institutions to protect consumers from businesses that have previously taken unfair advantage of them due to their lack of knowledge or complicated contractual obligations.

7. Committing acts of personal degradation

Over time, it became increasingly obvious that the actions of employees outside of work can have a negative impact on the image of the company. This is one of the primary reasons why companies minimize social interactions or events outside the office so that drug or alcohol related incidents cannot be traced back to the company.

8. Perpetuation of interpersonal abuse

This category of ethical misconduct focuses on abusing employees through sexual harassment, verbal abuse, or public humiliation of the company manager.

9. Allowing organizational abuses

When an organization decides to operate in another country, it sometimes confronts a social culture in which child labor, degrading work environments or excessive working hours are required. At this point, the company’s leaders have a choice… to continue the abuse or mitigate it.

10. Violation of rules

In some cases, people or organizations break the rules to speed up a process or decision. In many cases, the results would have been the same regardless, but breaking the rules or prescribed procedures for that result could potentially damage the organization’s reputation.

11. To condone unethical actions

Let’s say that one day at work you notice that a colleague is using loose change for personal purchases and doesn’t report it. Maybe you know that a new product under development has security issues, but you’re not talking. In these examples, failure to do right results in evil.

12. Balancing ethical dilemmas

What about a situation that is neither right nor wrong? What to do here? Should Google or Microsoft do business in China when human rights violations are committed daily? Sometimes an organization must balance the necessity of doing business with the ethical dilemmas that arise from doing business.

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