1.0 Introduction
When
we talk about ethics, it is the code of values and moral principles that guides
individual or group behaviour with respect to what is right and wrong (Trevino,
1986). There is no proper structure or guideline or framework to defines what
action is morally done and what is not. Ethical behavior is defined as
character which is morally accepted as “good” and “right” as opposed to “bad”
or “wrong” (Sims, 1992). Basically, what is good in society as a whole is
accepted as an ethical act while what is opposed in society, is considered as
unethical act.
In
context of organization: Ethical behavior has been mostly frequently described
in term of ethical behavior of senior leaders and the culture to which they
substantially contribute (DeGeorge, 1986). An ethical act is usually lay on
leader behavior, how a leader handle and overcome issues in an organization is
portrayed as ethical concerns for organizational entity. (as cited in Mihelič, Lipičnik
and Tekavčič , 2010).
In
general, in order to have an ethical culture a leader must play a role to “Walk
the Talk”, it means that, an ethical leader can create ethical culture in an
organization if a leader itself, do what is ethical to be done in any
circumstances. While, Ethical Dilemma though, arises in uncertain situations,
in which different interest, values and beliefs pertaining to multiple
stakeholders are in conflict. Ethical leadership is crucial and vital in
providing directions that enables the organization to fulfill its mission,
vision and declared goals (Kanungo & Mendonca, 1996). According to Guy
(1990), leading ethically is believed to be a process of inquiry-asking
questions about what is right and what is wrong- and a mode of conduct- setting
the example for followers and others about the rightness or wrongness of
particular actions, “Leader Walk the Talk”.
2.0 Three Steps to Solve Ethical Dilemma
There
are several of step that can be taken in order to resolve the ethical dilemma
issues in leadership. However, these three steps are outlined clearly by a
coaching and e-learning firm of BIGG Success.com. Know your values, select a
model and use a problem as a solving process.
2.1
Know your values
The
first step in order to solve ethical dilemma in leadership is know your values.
In a simple definition of values according to Ethics Sage by Steven Mintz in
2018, values are basic and
fundamental beliefs that guide or motivate attitudes or actions. Values help us
to determine what is important to us. Values describe the personal qualities we
choose to embody to guide our actions; the sort of person we want to be; the
manner in which we treat ourselves and others, and our interaction with the
world around us. They provide the general guidelines for conduct. There
are certain values which society agrees, and accepted as a right values or
things to do for example honesty, integrity, trustworthiness, civility,
personal responsibility and more.
Values are the motive behind purposeful action. It is the
ends to which we act and come in many forms. Personal values are personal
beliefs about right and wrong and may or may not be considered moral. Cultural
values are values accepted by religions or societies and reflect what is
important in each context. In solving ethical dilemma in leadership, we need to
determine the values and it’s about applying them. Create our own list of core value that we
uphold most in ourselves, whoever we are so that we can apply this values
accordingly in every action that we take.
2.2
Select a model
In
selecting the best model to be applied in solving ethical dilemma, the model
theories are divided into two which are consequential theories and
non-consequential theories. For consequential theories, it spread to three;
egoism, utilitarianism and situational theories. While non consequential
theories divided intosingle rule factor and multiple rule factors. For single
rule factor, it is divided into Golden Rule and Categorical Imperative (Kant).
While multiple rules is categories under Prima face duties (Ross, Maximin
Principles of Justice (Rawls) and Proportionality (Garrett).
The
theory of egoism is an act that brings morality if it promotes your best
long-term interest. This theory give a flexibility toward leader to make
decision that give prolong interest, however it posses weaknesses when it is
inconsistent and ignores the interest of others as long as a long term benefits
could be gain. While for utilitarianism, an act is moral if it produces the
great ratio of good to evil for everyone. Its do flexible and resolves conflict
of interest but it may conflict with justice when the right of minority being
neglected. In situational theory, an act is moral if it creates the greatest
amount of love. Among the rest, this theory is the most humanizes decision
making theory that show empathy more than moral legalism but there are no
definite criteria for decision making.
For
Golden rule, an act is said to be moral if you treats others the way you would
wish to be treated. This rule brings fairness into play as you have the mind
set not to jeorpardize others right as well as you won't allowed people do the
same towards you. However, this rule posses weakness where we can't know what
others feel and think about either it is the same as what we thought to be
treated. As categorical Imperative by Immanuel Kant an act is moral if you
would wish that everyone behaved in the same manner. It means that, everyone
recognizes responsibilities and respects the right of others without any
subject of misinterpretation of duties.
For
multiple non-consequential factors, Prima face duties by Sir William David Ross
defined act of morality by fulfilling your duties; if there is conflict,
fulfill the duty to which you are most obligated. Which is prioritise the duty
by acting sensitive to the consequences but without having a basic agreement on
moral principles. On the other part, Maximin Principles of Justice by John
Rawls explains an act is moral if it provides an equal amount of liberty for
you and others, except when social or economic inequalities exist. In that
case, the worst-off in society should benefit more from the act. This
principles theory assumes a high level of rationality and encourages social responsibilities
in society by all. The third theory under multiple factor is Proportionality by
Garrett (1966), means an act is moral if, in engaging in it, you don’t will a
major evil to you or anyone else without a proportionate reason. It is highly
subjective and provides flexibility without immorality.
2 2.3 Use problem as a solving process
It
is really important to know your values and uphold it within ourselves; from
here we know that, which model to apply to orderly
process to solve the problem. A good value will determine the decision that we
made either it is morally right or wrong. Considered all the alternatives and
chosen the best alternative under the circumstances. Select the best model to
suits with personal or organization interest and never neglect the act of
morality.
3.0 Ethical Dilemma Issues by Business Leader
3.1 Anthony Soohoo,
Co-Founder and CEO of Dot & Bo
“During
my time as a product manager on Apple’s PowerBook team, we were gearing up to
launch a new product. As part of testing, we had found that a very small sample
size with flawed and could be harmful. I was under tremendous pressure to make
decision on whether or not to hold off bringing the product to market. And
there were good arguments on both sides”.
On
the other hand, the defected sample size was small and not statistically
significant, and millions of dollars would be lost by holding off shipment.
However, Soohoo believed the long-term impact risk was high.
What
would you decide if you’re in Soohoo position?
Ultimately, Soohoo
decided to delay the launch of the product, “If the flaw was bigger than we
thought, it could have created a huge loss of trust with our customers,” he
says.
“In the end, I decide to
take a long-term perspective and it just made more sense to delay the launch”.
The lesson in this
ethical dilemma situation is trust your gut to do the right thing for the
customers. When there is difficult decision to make, make it based on what
would create long-term value instead of gaining the short-term win.
Theoretically, Soohoo made decision based on consequential theory of egoism as
his act of choosing long-term best interest instead of short term interest.
Customer trust is an important part to be preserved in order to sustain and
develop a business in a long term momentum.
3.2 Scott Gerber, CEO of The Gerber Group
Gerber Group is one of
the prestige leading company in hospitality industry with owning-operator of 15
innovative cocktail bars and restaurants in New York, Washington D.C., Atlanta,
Santiago and Chile. Established their first venue in 1991 named The Whiskey at
the Paramount Hotel, Gerber Group promising its strong ability to provide a
unique nightlife experience with creative dining concept and bars featuring
renowned beverage programs accompanied by exceptional culinary talents.
One of the stories in
ethical dilemma issues told by Gerber was, one of the employees was immediately
fired when Gerber found out that him clocking in his wife who wasn’t actually
showing up until three hours later. Afterwards, the employee came in with his
father, who has worked for Gerber for two decades and they pleaded for another
chance. His father told that, his son just welcoming their first newborn, so
his wife cannot make herself to work until his son reach home.
“We made the decision to
rehire him”, “The decision was extremely difficult because we caught him
technically stealing from the company and we generally have a zero-tolerance
policy for such behavior. But because his father has worked for us for over 20
years and vouched that his son would never do this again, we decided to give
him another chance.” say Gerber.
Based on the above
ethical dilemma scene, it portray that loyalty and longevity still matter at
some companies. Gerber had come out with decision to rehire theoretically based
on consequential theories under situational circumstances. Gerber made that
decision by considering on his employee’s father that served the group for 20
years. It is consider as a moral act by showing the greatest amount of love
towards his employee’s loyalty and services. An act of humanity values by
considering employees situation and problem.
4.0 Conclusion
As a conclusion, ethical dilemma is
actually subjective and there is no right and wrong answer in taking a
solution. What we as a leader can do is taking into consideration all the
possibilities and input of outcome on what will happen once decisions are made.
There will be risk in present on every decision taken. In order to act
ethically, there are lots of challenges to satisfy everyone needs and
requirment, but one solid solution is a must in order for a leader to 'Walk The
Talk'. Some minor group's interest needs to be forgone in order to reach
decision that satisfy a larger group. Sometimes leniant actions by leader is
required in order to reach ethical decision and ac with humanizes values.
Reference
Black,
S. (2015). CEOs and Top Leaders: Solutions to solve ethical dilemmas and decision
making. 5th International
Conference on Engaged Management Scholarship: Baltimore, Maryland.
Giang,
V. (2015). 7 Business leaders share how they solved the biggest moral dilemmas
of their careers. Retrieved from www.fastcompany.com
Mihelič,K,K.,
Lipičnik, B., & Tekavčič, M. (2010). Ethical leadership. International Journal
of Management & Information Systems –
Fourth Quarter 2010 Volume 14, Number 5.
Krueger,
G. and Foster, M-L. (2008). 3 Steps to solve an ethical dilemma. Retrieved from
www.biggsuccess.com
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