Case study 200 words

Four Approaches to Deciding Ethical Dilemmas

How do alternative values guide people’s decisions about ethical behavior? Here are four approaches, which may be taken as guidelines:

1. The Utilitarian Approach: For the Greatest Good

Ethical behavior in the  utilitarian approach  is guided by what will result in the greatest good for the greatest number of people. Managers often take the utilitarian approach, using financial performance—such as efficiency and profit—as the best definition of what constitutes “the greatest good for the greatest number.” 107

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Thus, a utilitarian “cost–benefit” analysis might show that in the short run the firing of thousands of employees may improve a company’s bottom line and provide immediate benefits for the stockholders. The drawback of this approach, however, is that it may result in damage to workforce morale and the loss of employees with experience and skills—actions not so readily measurable in dollars.

2. The Individual Approach: For Your Greatest Self-Interest Long-Term, Which Will Help Others

Ethical behavior in the  individual approach  is guided by what will result in the individual’s best  long-term  interests, which ultimately are in everyone’s self-interest. The assumption here is that you will act ethically in the short run to avoid others harming you in the long run.

The flaw here, however, is that one person’s short-term self-gain may not, in fact, be good for everyone in the long term. After all, the manager of an agribusiness that puts chemical fertilizers on the crops every year will always benefit, but the fishing industries downstream could ultimately suffer if chemical runoff reduces the number of fish. Indeed, this is one reason why Puget Sound Chinook, or king salmon, has been threatened with extinction in the Pacific Northwest. 108

3. The Moral-Rights Approach: Respecting Fundamental Rights Shared by Everyone

Ethical behavior in the  moral-rights approach  is guided by respect for the fundamental rights of human beings, such as those expressed in the U.S. Constitution’s Bill of Rights. We would all tend to agree that denying people the right to life, liberty, privacy, health and safety, and due process is unethical. Thus, most of us would have no difficulty condemning the situation of immigrants illegally brought into the United States and then effectively enslaved—as when made to work seven days a week as maids.

The difficulty, however, is when rights are in conflict, such as employer and employee rights. Should employees on the job have a guarantee of privacy? Actually, it is legal for employers to listen to business phone calls and monitor all nonspoken personal communications. 109

4. The Justice Approach: Respecting Impartial Standards of Fairness

Ethical behavior in the  justice approach  is guided by respect for impartial standards of fairness and equity. One consideration here is whether an organization’s policies—such as those governing promotions or sexual harassment cases—are administered impartially and fairly regardless of gender, age, sexual orientation, and the like.

Fairness can often be a hot issue. For instance, many employees are loudly resentful when a corporation’s CEO is paid a salary and bonuses worth hundreds of times more than what they receive—even when the company performs poorly—and when fired is then given a “golden parachute,” or extravagant package of separation pay and benefits.