Handling Ethical Dilemmas Process Template

This template was created in partnership with Ann Skeet, the Senior Director of Leadership Ethics at the Markkula Center for Applied Ethics.

*Disclaimer from Trainual

Please note that this template is not a legal document. And its information is for general knowledge and educational purposes only — not to provide advice on how to structure your organization's processes and/or policies. Meaning, this template should never be taken in place of legal advice. 

To use, you will need to customize this template to meet all your company's requirements. So, please update it with any and all relevant information before rolling it out (like deleting this step)!

Introduction

Purpose

This process is here to guide you through complex ethical decisions in your daily work. It will help you balance the company’s short-term goals with long-term ethical considerations, ensuring every decision you make aligns with our mission and values. 

We emphasize transparency, empathy, and inclusivity, empowering you to make choices that support both immediate business objectives and our core ethical standards. By following this process, you contribute to a culture of integrity and accountability, helping us navigate challenges together with confidence. Your decisions will not only protect the company's reputation but also reinforce our long-term sustainability. 

This process is designed to ensure that ethical decision-making becomes second nature, minimizing risks and supporting a work environment where ethical behavior is recognized and rewarded. You play a critical role in upholding these values at every level, and this guide will help you do just that.

Key Principles

At the core of this process are key principles that will guide you in making thoughtful, responsible decisions. First, every decision you make should align with the company’s mission, values, and long-term goals. Our ethical foundation is not just for show — it should be a living part of how we operate daily. When faced with tough choices, ethical considerations must take priority over short-term gains, ensuring that the company’s integrity remains intact.

Transparency is another critical principle. Be open about the challenges you face and seek input from others when necessary. By fostering a culture of trust and inclusivity, you create an environment where ethical behavior thrives. Remember, you are part of a community, and your decisions affect not only immediate outcomes but also long-term relationships and company culture.

Lastly, consider the broader impact of your actions. Ethical choices today safeguard the company’s future success and reputation.

How To Handle Ethical Dilemmas

Step 1: Identify the Ethical Dilemma

The first step in this process is to recognize when you're facing an ethical dilemma. Ethical dilemmas are more than just routine decisions — they occur when two or more values or principles come into conflict, and the right path forward isn’t immediately clear. These decisions often have far-reaching consequences, impacting not only the company's short-term goals but also its long-term integrity, reputation, and culture.

To differentiate between everyday decisions and ethical dilemmas, consider the stakes involved. Routine decisions typically focus on operational efficiency, profitability, or project deadlines and don’t necessarily conflict with ethical values. Ethical dilemmas, on the other hand, arise when you must choose between competing interests — such as profitability versus fairness, or growth versus transparency. Ask yourself: 

• Does this decision involve potential harm to employees, customers, or stakeholders? 
• Does it compromise the company’s mission or values? 
• Could it affect the company’s reputation or the well-being of others in the long term?

If the answer to any of these questions is yes, you’re likely dealing with an ethical dilemma. Identifying these situations early is critical. Acknowledging the ethical weight of your decision helps ensure that you approach it thoughtfully and use the following steps in the process to guide your choice.

Step 2: Apply the Six Ethical Lenses

Once you've identified an ethical dilemma, use the six ethical lenses to evaluate your options from multiple perspectives. (These are also outlined in our Decision-making Guidelines training.) These lenses help you thoroughly assess the ethical implications of your decision:

1. Human Rights: Does the decision respect and uphold the rights and dignity of everyone involved?
2. Justice and Fairness: Is the decision fair and equitable for all stakeholders, or does it favor some over others?
3. Greatest Good: Will the decision benefit the greatest number of people, even if it requires some trade-offs?
4. Common Good: Does the decision contribute to the overall well-being of the company, its employees, and the broader community?
5. Virtue Ethics: Does the decision allow you and others to act in a way that reflects the company’s core virtues and values?
6. Care and Relationships: Does the decision take into account relationships and show empathy for those affected?

Using these lenses helps ensure that your decision is well-rounded, thoughtful, and aligned with both ethical standards and company values.

Step 3: Evaluate Short-Term vs Long-Term Impact

In this step, consider both the short-term and long-term consequences of your decision. Ethical dilemmas often involve trade-offs between immediate results and future implications. Short-term decisions typically focus on operational efficiency, meeting financial targets, or solving an urgent problem. However, these gains can sometimes come at the cost of the company’s integrity, culture, or long-term success.

Ask yourself: How will this decision affect the company’s goals today? While short-term gains may seem appealing, they should never undermine the company’s mission, values, or reputation. Consider the long-term impact of your decision as well. Will it strengthen the company’s ethical foundation? Will it contribute to a sustainable and trustworthy reputation in the future?

Balancing short-term business objectives with long-term ethical considerations is key to protecting both the company’s immediate needs and its future growth. Always prioritize decisions that align with long-term integrity over quick wins that could compromise our values.

Step 4: Consult Core Values and Mission

When faced with an ethical dilemma, turn to the company’s core values and mission as your guiding principles. These aren’t just words on a wall—they define who we are and how we operate. Every decision you make should align with our values and contribute to the company’s long-term mission.

Start by asking yourself: Does this decision reflect our core values? If there’s a conflict between the decision and our ethical principles, it’s important to rethink your approach. For instance, if the choice undermines fairness, transparency, or respect, it’s likely not aligned with who we are as a company.

Next, ask: Will this decision move us closer to fulfilling our mission? The best decisions help us stay true to our long-term purpose while maintaining integrity in the short term. By consistently consulting our core values and mission, you ensure that each decision reinforces the ethical foundation we’ve built as a company.

Step 5: Seek Diverse Perspectives

When navigating ethical dilemmas, it's essential to gather input from a range of perspectives. Ethical decision-making becomes stronger when multiple viewpoints are considered. By consulting colleagues, cross-functional teams, or even external stakeholders, you gain insight into potential blind spots and consequences you might not have considered.

Ask yourself: Who else will be impacted by this decision, and how? Engaging those who represent different departments, roles, or levels within the company ensures that the decision reflects a broader understanding of its ethical implications.

Encourage open and honest dialogue. People should feel comfortable raising concerns or offering alternative approaches without fear of reprisal. Diversity of thought allows for a more comprehensive evaluation of the ethical and business risks involved, helping you make a decision that’s well-rounded and thoughtful.

Remember, seeking diverse perspectives fosters a culture of inclusivity, collaboration, and shared responsibility in upholding our company’s ethical standards.

Step 6: Make an Informed Decision

After thoroughly assessing the situation using the ethical lenses, consulting core values, and gathering diverse perspectives, you are now ready to make an informed decision. This step requires you to weigh all the information and insights you've gathered to choose the path that best aligns with the company’s mission, values, and ethical standards.

Ask yourself: Does this decision uphold our ethical principles and protect the company’s long-term integrity? If the answer is yes, proceed with confidence. If any lingering doubts remain, consider revisiting the earlier steps for further clarity.

It’s essential that the decision reflects both the short-term operational needs and the long-term ethical commitments of the company. Balance is key—ensure that the outcome serves immediate business objectives without compromising the company’s values or reputation.

Once the decision is made, be prepared to take responsibility for its impact, both positive and negative, and to communicate it clearly and transparently to all relevant stakeholders.

Step 7: Communicate the Decision

After making an informed decision, it’s crucial to communicate it clearly and transparently to all relevant stakeholders. Effective communication not only ensures that everyone understands the decision but also builds trust and reinforces the company’s commitment to ethical practices.

Start by explaining the reasoning behind the decision. Why was this choice made, and how does it align with the company’s mission and values? Be open about the process you followed, including the ethical lenses used and the input gathered from diverse perspectives.

It’s also important to acknowledge any potential consequences or trade-offs. Transparency in addressing both the positive and negative aspects of the decision helps maintain credibility and encourages honest discussions in the future.

Ensure that communication channels are open for feedback or questions, fostering a culture of openness and inclusion. Clear, thoughtful communication demonstrates that ethical decision-making is a priority and invites collaboration in upholding those standards across the company.

Step 8: Review and Reflect

Once the decision has been implemented, it’s important to review its outcomes and reflect on the process. This step allows you to assess whether the decision achieved its intended goals and aligned with the company’s ethical standards.

Start by evaluating the impact: Did the decision uphold our values? Did it create the desired short-term and long-term outcomes? Identify any positive effects as well as areas where improvements could be made. Gathering feedback from those involved or affected can provide valuable insights for future decision-making.

Reflecting on the process also helps reinforce ethical behavior across the company. By documenting lessons learned, you contribute to continuous improvement in how we handle ethical dilemmas.

Encourage open discussions about the outcome to promote transparency and accountability. Regularly reviewing and refining decisions helps ensure that ethical considerations remain at the forefront of our operations, enhancing the company’s integrity and long-term success.

In Case of Ethical Missteps

Early Warning Signs

Recognizing early warning signs of ethical missteps is critical in maintaining the company’s integrity. One key indicator is a lack of challenge or dissent—if no one questions decisions or raises concerns, it may suggest that employees don’t feel safe speaking up or are overlooking potential issues. Encouraging open dialogue is essential to avoid this.

Another red flag is centralized decision-making where all decisions are made at the top without input from other teams. This can lead to blind spots and ethical oversights, as diverse perspectives are not considered.

Also, be cautious of a short-term focus, where immediate results are prioritized at the expense of long-term values. This can create a culture of cutting corners or compromising ethical standards for quick gains.

Regularly assess the workplace climate through surveys, open forums, or informal check-ins to identify these warning signs early and take corrective action to prevent ethical missteps from escalating into larger issues.

Accountability and Continuous Improvement

Accountability is key to ensuring ethical decision-making remains central to the company’s culture. Every employee is responsible for upholding the company's values, and this commitment must be reflected in daily actions and decisions. Leaders, in particular, play a crucial role by modeling ethical behavior and holding themselves and their teams accountable for their choices.

Regular self-assessment and feedback loops are essential for continuous improvement. This can be achieved through ongoing ethical culture assessments, pulse surveys, and open discussions that invite employees to share concerns or suggest improvements.

Encouraging transparency and learning from past decisions helps the company evolve. Documenting lessons learned from both successes and mistakes allows the organization to refine its processes, improve decision-making, and adapt to new ethical challenges.

By fostering a culture of accountability and continuous improvement, we ensure that ethical considerations remain a priority and that the company consistently grows in integrity and responsibility.

Crisis Response for Ethical Breaches

In the event of an ethical breach, swift and decisive action is essential to protect the company’s integrity and prevent further damage. The first step is to acknowledge the breach openly and transparently. This demonstrates accountability and reassures stakeholders that the issue is being taken seriously.

Next, clarify the company’s ethical position by reaffirming our core values and mission. This helps realign the team’s focus and sets the standard for how such breaches will be addressed.

After assessing the situation, implement corrective actions to address the breach and prevent similar incidents in the future. This might include revising policies, improving oversight, or offering additional ethical training to employees.

Finally, communicate the steps taken to resolve the issue and engage in open dialogue with stakeholders. A well-managed crisis response not only mitigates the immediate harm but also reinforces the company’s commitment to ethical behavior and long-term integrity.

Conclusion

Have Questions?

The "Handling Ethical Dilemmas Process" is designed to help you navigate challenging decisions with integrity and confidence. By following these steps, you ensure that your choices align with the company’s values, mission, and long-term goals. Remember, ethical decision-making is a collective responsibility that strengthens our culture and reputation.

If you ever face uncertainty or need guidance in applying this process, don’t hesitate to reach out. For any questions or concerns, you can contact the HR team.