Ethical Dilemma in Business: Case Study and Analysis

This paper discusses an ethical dilemma in business, specifically a case study during the 2017 Hurricane in Texas. It analyzes the situation, ethical frameworks, and provides recommendations.

Running head: LAWS AND ETHICS
LAWS AND ETHICS
Name of the student:
Name of the university:
Author note:

1LAWS AND ETHICS
Introduction:
In business, an ethical dilemma is a common phenomenon which is not only universal but
also inevitable. An ethical dilemma is a problem of decision making where the decision maker
has to choose between options which are equally undesirable (Ferrell & Fraedrich, 2015).
Making ethical decisions that are morally right are specifically difficult in a business where a
balance of professional and personal thoughts has to be balanced. In this paper, by undertaking a
specific ethical dilemma in business, an understanding of the ethical dilemma is presented. The
paper aims to understand the ethical dilemma in a specific case along with ethical frameworks.
The paper also provides a recommendation on the basis of the ethical dilemma that is discussed
in the paper.
The case:
During the 2017 Hurricane in Texas, USA a donation was made across the world in order
to support the victims of the disaster. The money raised was not only much more than what was
expected but also an amount that would never be possible t spends it all on that specific
hurricane incident. Even after all the expenditure for the rescue of the victims and their relief,
plenty of money was left over. Considering myself as the manager of the non-profit organization,
I have genuinely spent the money helping people needing assistance. However, more than half of
the money was left, and I have to make the decision of either keeping the leftover money for
another cause which has not been mentioned by the donor.

2LAWS AND ETHICS
Identification of the ethical dilemma:
In the case mentioned above the ethical dilemma is the situation where the manager has
to make a decision regarding the money that was left for the relief for victims of the hurricane. It
is an ethical dilemma as the money belongs to the public who have given it for a specific reason
to the non-profit organization. Since the money belongs to the public, they owe an explanation of
their money. They are the donor of the money, and they can certainly claim an explanation of
their money (Zydziunaite & Suominen, 2014). The reason the situation is an ethical dilemma is
for it has an extended consequence. Making use of plenty of money will certainly have an
extended consequence. There is multiple alternatives to the choices. There are several options
among which one has to be selected. The decision may have mixed outcomes. Also, the situation
has a personal implication. The situation would have been easy to handle or would give an easy
way to making a choice if the manager was not involved in the situation directly. Since the
manager is directly involved personally with the situation, it is a situation of an ethical dilemma
(Jerolmack & Murphy, 2017).
Analysis of the situation and ethical dilemma:
According to utilitarianism, it is an ethical decision when the happiness of the greatest
number of people in society is considered. By making a decision that would bring about the
most happiness for everyone, it is an ethical decision (Boralevi, 2017). Therefore, by using the
money that would benefit a large number of people and bring happiness to them will certainly be
an ethical decision. The manager can use the leftover money for another cause that may be in
severe condition and may need extensive help. Through a measure that would use the money and
help the others in need will be an ethical decision.

3LAWS AND ETHICS
Kant argued that most things that are often thought as good are not always good. The
important aspects of life such as intelligence, knowledge and wealth can be used for evil. It is
only the goodwill that is always good, and it is only the goodwill that drives to do the right thing
despite everything. As moral agents, the only responsibility is to work out the duties that an
individual has. Therefore, according to the Kantian theory the money can be used for some
another purpose only if that is backed up by good will (Bernstein, 2014). The decision to use it
for another purpose and notify the donor regarding the decision is an ethical decision as it has a
good intention. As holding the position of manager, the decision can be made on the basis on the
basis of knowledge and skill. The experience and knowledge will certainly provide a useful way
of using the money however, it is the responsibility to inform the donors about the decision. The
decision has to be made considering the goodwill as well as duties and responsibilities (Prichard,
2017).
Moral decisions are those that are best maintain the rights of those people affected by
them. Any decision that does not interfere with the fundamental rights of others, it is an ethical
decision. The decision will not have to deprive anyone of their fundamental rights. Although by
using the money for some other purpose which may be for a genuine purpose, however, it
certainly deprives people of their fundamental rights. A human being has six fundamental right,
and they cannot be taken away by any one person’s individual decision (Kaczor, 2014). The six
fundamental rights involved, free consent, privacy, conscience, life and safety, free speech and
due process. If the manager makes a decision without the knowledge of the donors, it does not
take away any fundamental right from anyone. Therefore, it is an ethical decision to utilize
leftover money for some other cause. Although the decision may deprive the donors of the right

4LAWS AND ETHICS
to information, it does not fall under the six moral rights. Therefore, the manager can make a
decision of spending the money for some another cause.
Recommendation:
Based on the discussion above, the manager can make have several options for spending
the money. In order to make an ethical decision, the manager must describe the problem to the
donor, the other stakeholders, and other associated members. The manager must gather the facts
before calling for a meeting and clarify the situation along with the values he held important
while making the decision. Identifying ethical principles are the most important part since the
manager is involved directly with the issue and the situation is depended on his decision. The
manager should represent the other alternatives and options in case there is a possibility of a
better solution. Also, there will be recommendations from other participated members. Lastly
keeping everything in mind, the manager can make the decision. The decision will be made with
the consideration of the member’s opinion and ethical values will be considered as well (Lin,
Abney & Bekey, 2014).
Conclusion:
In today’s business ethical dilemmas is a common phenomenon. The workforce comprise
of people from different background who are diverse in their nationality. Dilemmas are bound to
arise. It becomes difficult to maintain an ethical perspective while making a decision. Therefore
with the help of ethical theories that are developed by scholars, one can make difficult decisions
in the situations that are considered ethical dilemmas. At the end of the paper, the importance of
the theories on ethics can be understood. The Kantian, utilitarian and moral rights helped to

5LAWS AND ETHICS
understand the ways an ethical decision can be made. A business that adheres to the ethical
principle is the business that sustains in the market while maintaining customer loyalty. Ethical
principles are vital in the business. Ethics can depend largely on various factors such as culture,
place and the nature of the problem. Therefore, ethical theirs help in building the ethical
perspective and make ethical decisions during ethical dilemmas.

6LAWS AND ETHICS
References:
Bernstein, J. M. (2014). Recovering ethical life: Jurgen Habermas and the future of critical
theory. Routledge.
Boralevi, L. C. (2017). Utilitarianism and feminism. In Jeremy Bentham (pp. 417-436).
Routledge.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson
Education.
Jerolmack, C., & Murphy, A. K. (2017). The ethical dilemmas and social scientific trade-offs of
masking in ethnography. Sociological Methods & Research, 0049124117701483.
Kaczor, C. (2014). The ethics of abortion: Women’s rights, human life, and the question of
justice. Routledge.
Lin, P., Abney, K., & Bekey, G. A. (2014). Robot ethics: the ethical and social implications of
robotics. The MIT Press.
Prichard, H. (2017). Kant's theory of knowledge. Jovian Press.
Zydziunaite, V., & Suominen, T. (2014). Leadership styles of nurse managers in ethical
dilemmas: Reasons and consequences. Contemporary nurse, 48(2), 150-167.