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Categories of Ethical Dilemmas in Business

first published on exchange, the journal of Brigham Young University’s School of Business, has developed the following twelve categories to cover the root or cause of most business ethics dilemmas that people are likely to encounter on the job. I’ve summarized them to keep them short and to the point.

1. Take what doesn’t belong to you

Everything from grabbing highlighters in the closet to sending personal emails through the mailroom to downloading unauthorized games to play on your work computer falls into this category. The chief financial officer of a large corporation took a taxi from the airport to his home in the city. When he asked the taxi driver for a receipt, he got a whole book of blank receipts. Clearly, this dilemma of accurately reporting business expenses involves more than just one employee.

2. Saying what you know isn’t true

It is a violation of ethics when a car salesman insists to a customer that a used car has not been in an accident before, if there has been one. Another ethical violation (and perhaps illegality) occurs when store clerks assure customers that products have a money-back guarantee, when only trade-ins are allowed.

3. Giving or allowing the wrong impression

There’s an urban legend about selling 2 CDs in a TV ad claiming that all the hits of the 1980s were on CD. TV commercials repeatedly emphasize that all songs are sung by original artists. When they received the CD, a closer examination revealed that all the songs had been covered by a band called The Original Artists. While technically correct, the TV ad gave the wrong impression.

4. Buying influence or getting involved in a conflict of interest

Conflicts of interest can arise when a company awards a construction contract to an organization owned by the attorney general’s brother, or when the county board tasked with selecting a new road-building company scouts roads statewide at the expense of one of the bidders will affect the outcome of this selection.

5. Concealment or disclosure of information

Failure to disclose information about the results of a new product safety study, or choosing to use your company’s proprietary product information for new work, are examples of this.

6. Misuse

Have you ever wondered why there are so many product safety rules and procedures? This is largely the result of government agencies passing laws to protect consumers from companies that have previously exploited them unfairly through lack of knowledge or through complex contractual obligations.

7. Committing personal depravity

Over time, it has become increasingly apparent that the behavior of employees outside of work can negatively affect the corporate image. This is one of the main reasons companies minimize social interactions or activities outside the office so that drug or alcohol related incidents cannot be traced back to the company.

8. Persistent interpersonal abuse

At the heart of this type of ethical misconduct is corporate leadership abusing employees through sexual harassment, name-calling or public humiliation.

9. Allowing Organizational Abuse

When an organization chooses to operate in another country, it sometimes runs counter to social cultures that require child labor, demean work conditions, or work excessive hours. It is at this point that the company’s leaders have a choice…whether to continue this abuse or mitigate it.

10. Breaking the rules

In some cases, individuals or organizations violate the rules to expedite a process or decision. In many of these cases, the outcome is the same anyway, but they risk damaging the reputation of their organization if they violate the rules or procedures required for that outcome.

11. To condone immoral behavior

Suppose you were at work one day and noticed that one of your co-workers used petty cash to buy a personal item and didn’t report it. Maybe you know there is a security issue with a new product you’re developing, but you don’t speak up. In these examples, not doing the right thing is wrong.

12. Balancing moral dilemmas

What about situations that are considered neither right nor good? What should be done here? Human rights are being violated every day, should Google or Microsoft do business in China? At times, organizations must balance the need to do business with any ethical dilemmas that may arise while doing business.

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