An ethical dilemma is when a problem in the decision making process arises between two options where neither of them are ethically acceptable, the solution is not straightforward as this is a situation where there is no simple choice between right and wrong. Dilemmas can become apparent due to the conflict of personal values and organizational values as well as social ones. A dilemma exists when there are two or more options that have negative impacts on either the organizations profitability or the stakeholders. It is when conflict arises between the social and economic performance of a business. To solve these ethical problems companies should construct strict ethical standards for their employees which.
Business ethics is the understanding of business practises and behaviour in terms of morality. The first component of the framework for ethical decision making is the utilitarian approach which attempts to increase the good done and reduce harm to those involved such as customers, employees, shareholders, the community and environment. This approach deals with the consequences and professionals who are taking the ethical action that minimises harm for most people by balancing all interests, an example of this could be tiered seats (economy, business, first).
The rights approach are for leadership teams whose best interests are to protect and respect the rights and morals of those who could be affected. This approach believes that humans are worthy of honor and respect and have free will therefore have to be treated fairly and not as a means to an end. Moral rights include the right to make your own decisions, to be told the truth and to be given privacy. The ethical action should respect everyone’s moral and legal rights.
It is common knowledge that everyone should be treated equally which is defined in the fairness approach. Ethical actions taken should keep in mind that treating everyone equally or fairly with justification despite the circumstances such as their position in a company. For example in a company if one person is offered health care then everyone should be offered this amenity too, nevertheless it is justified that people who work harder should be paid more.
The common good approach is also an important component of the framework for making ethical decisions within a business. It states that leaders in an organization should endeavor to protect the well being of the community. This approach puts emphasis on relationships and how the interaction of society’s relationships shows that respect and compassion for everyone around us should influence us to do good by others. Ethical actions taken place due to this approach benefit the welfare of everyone, such as police and fire departments or national health services ; businesses in the public sector. An example of this would be an accessible and clean water for society.
The virtue approach requires the head of an organization to base ethical standards on virtues such as honesty, compassion, sympathy, bravery and tolerance. These are qualities that allow us to work to our fullest potential and have an impact on us to strive to be the best version of ourselves. More examples of virtues include self-control, fairness and integrity, they let employees consider if their actions will negatively affect their desire to be kind to others. It enables them to question if the actions they take display the character values they have in themselves and if they are satisfied with the decisions they have made.
A stakeholder is an individual, a group or an organization which invests money into a projects, aiming for a positive outcome and a financial profit which depends on the success of the project which will depend within or outside the organization that is sponsoring the project. Stakeholders can have a positive or negative influence on the project. As they can also lose the money they have invested if the project fails.
There are a lot of people involved in getting a project from inception to successful completion. The key is to know how to manage them in order to make sure they produce a positive outcome making your investment profitable.A stakeholder must have the skills to know how to deal with personalities, have a good dialogue in order to reach the goal
Many would argue that businesses exist to serve their customers. Customers are actually stakeholders of a business in that they are impacted by the quality of service and its value. For example, passengers traveling on an airplane literally have their lives in the company’s hands while flying with the airline.
Employees have a direct stake in the company in that they earn an income to support themselves, as well as other benefits (both monetary and non-monetary). Depending on the nature of the business, employees may also have a health and safety interest (for example, transportation, mining, oil and gas, construction, etc.).
Investors include both shareholders and debtholders. Shareholders invest capital in the business and expect to earn a certain rate of return on that capital. Investors are commonly concerned with the concept of shareholder value. Lumped in with this group are all other providers of capital, such as lenders and different classes of shareholders.
Suppliers and vendors sell goods and/or services to the business and rely on it for revenue generation and on-going business. In many industries, the suppliers also have their health and safety on the line, as they may be directly involved in the company’s operations.
Communities are major stakeholders in large businesses. They are impacted by a wide range of things, including job creation, economic development, health, and safety. When a big company enters or exits a small community, they will immediately feel the impact on employment, incomes, and spending in the area. In some industries, there is a potential health impact, as companies may alter the environment.