Throughout history, ethical theorists, like Plato, have grappled with the concept of moral or ethical dilemmas. These dilemmas arise when there is a conflict between moral precepts or obligations and no morally acceptable solution exists. This creates uncertainty about which action adheres to guiding moral principles in these circumstances.
When our daily moral principles are insufficient to determine the morality of a particular action, we encounter an ethical dilemma or moral dilemma. This is due to conflicting ethical beliefs that render all potential solutions unacceptable, forcing individuals to choose between two negative outcomes without any possibility of achieving a positive one. Ethical dilemmas pose intricate problems that challenge people with opposing ethical values. For instance, a salesman who must decide whether to be truthful about a product and risk losing their commission and sale is considered as a classic example of such dilemmas. Despite the significant consequences of
...unethical behavior for stakeholders, few executives face legal repercussions.
The occurrence of significant corporate scandals has increased public recognition of two essential ethical principles: stakeholders and ethical dilemmas. Although these principles are not exclusive to the business world, they are frequently utilized in making moral decisions within corporations. The actual implementation of these concepts in practical business settings is known as the corporate social responsibility movement. Stakeholders encompass all individuals affected by a decision-maker's choices, such as shareholders, staff members, consumers, suppliers, financial supporters, employees' families, and the local community where the corporation operates.
Stakeholders, such as those involved in a company's operations, taxpayers funding government bailouts, the government itself, and those affected by corporate pollution, have an interest in the decisions made by corporations. Ethical dilemmas can arise when
faced with conflicting courses of action that pose moral obligations. Reporting corporate fraud may cause employees to fear job loss and financial instability while failing to report it could put other stakeholders at risk.
Ensuring ethical behavior is heavily reliant on correctly identifying stakeholders. In the past, many individuals made unethical decisions unknowingly due to their failure to recognize moral dilemmas. Businesses prioritized profit-making while operating within legal boundaries for several years, leading to numerous corporate scandals. These companies made decision-making processes that breached legal lines and had significant effects on millions of stakeholders. For instance, paper corporations legally polluted water bodies for extended periods, rendering them unfit for human consumption and uninhabitable by animals and fish. Unfortunately, there are no established approaches to handling ethical dilemmas.
Confronting and acknowledging the consequences of decisions is unavoidable. However, two methods can help in making a choice. The first involves evaluating feasible actions and choosing the one with fewer moral predicaments. The second includes examining potential outcomes and selecting the action that produces more benefits or less harm.
