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How to Respond to an Ethical Dilemma

Last Updated April 19, 2023

Man and woman in business clothes looking at each other with confused expressions, discussing the proper ethical response they should take with a situation at their workplace.

As unpleasant as it may be to face, the statistics suggest that you’re likely to encounter an ethical dilemma in the workplace. According to the Ethics & Compliance Initiative’s 2018 Global Benchmark on Workplace Ethics, 30% of employees in the U.S. personally observed misconduct in the past 12 months, a number close to the global median for misconduct observation. Recent headline-making ethical issues, particularly those tied to discrimination and sexual harassment, have brought unethical conduct in the workplace to the forefront of the conversation. While greater awareness has led to a larger discussion on certain unethical behaviors when you encounter unethical behavior in your own workplace, you’re then faced with an ethical dilemma of your own—what actions should you take?

How to Act and React to an Ethical Dilemma

Depending on the situation, you may be a victim of unethical behavior, such as discrimination, sexual harassment, or bullying in toxic workplace culture. You may be the witness to your manager’s or coworker’s unethical behavior, or you may be asked by a manager or client to do something unethical. Your immediate reaction may be to blow the whistle on the behavior. However, whistleblowing may encourage retaliation, but inaction makes you complicit or continues to victimize you. It’s an ethical dilemma!

Here are some steps you can take to highlight your concerns without risking your job or your own ethics:

Repeat Back and Clarify

Muse Career Coach Avery Blank says to tell your manager what you think the request is to ensure you have complete clarity. This may resolve the issue, either because you’ve misunderstood or because the newfound perspective has made the person rethink their request.

Ask Ethical Questions

If simply stating the request aloud does not work, probing your supervisor with questions regarding the reason and motivation behind the request can also help deter them. Melody Wildling, another Muse Career Coach, says that not only does this demonstrate that you make measured, informed decisions, but it can also create a more transparent dialogue.

Focus on your Manager’s Best Interests

If you can’t convince your supervisor yet, it may be time to point out that this will “look bad if it gets out,” writes Anne Fisher in Fortune. Pointing out the disadvantages this unethical action will have on your manager’s career will help your hands stay clean and portray your loyalty.

Suggest an Alternative Solution

After telling your manager that you are, in fact, uncomfortable with the situation after gaining more information, providing an alternate solution is the next best step to do if possible. Fisher says that while this isn’t always possible, it’s worth a shot, and you could end up looking like a hero.

Escalate Situations

If the situation isn’t resolved by clarifying, you’ll need to determine the next person to inform. Depending on your organization, this may be your boss’s leadership, general counsel, a compliance officer, a hotline, an auditor, or an HR representative.

Blow the whistle

If you exhaust all internal options and the issue isn’t resolved, external entities like the government or the media are the next step. But, Daniel Victor in The New York Times advises to consider the risks before you escalate the issue to this level. Bringing unethical behavior to light, even internally, isn’t always popular. Depending on the situation and the type of unethical behavior you’re bringing to light, you may be protected by OSHA’s Whistleblower Protection Program. However, even if you may be legally protected and vindicated, understand what this action could mean in your professional and personal life.

Leave Unethical Environments, If Necessary

If all else fails, it may be time to find another job. Try one final, firm refusal with the ultimatum that you will leave, and do so if the action isn’t resolved. While this may put an economic burden on you, in the long run, you don’t want to stay in a position where you’re asked to violate your morals or where advancement requires unethical behavior.

Do’s and Don’ts for Speaking Up to Bad Behavior

If you’re faced with an ethical dilemma, emotion can quickly take over as these situations may feel alarming or like a moral test. Use these do’s and don’ts, based on insights from Amy Gallo of the Harvard Business Review, author of the HBR Guide to Dealing with Conflict at Work, to make a more deliberate decision:

Do…

  • Question your assumptions: Fear – of confrontation or retaliation – can spur rationalization. Common rationalizations may include statements like, “this isn’t a big deal,” or “this is just the way it’s done,” or “this is not my responsibility.” Examine those assumptions to ensure they aren’t simply a way to avoid feeling bad if you don’t take action.
  • Gain perspective: Try to understand what is motivating the unethical request or action. This perspective can help form a response, particularly if there is an ethical way to achieve the same goal.
  • Have a conversation: With the exception of extreme ethics violations, confronting the individual directly first is often the best way to manage a situation. Provide an opportunity for the person to explain his actions or to correct the behavior first. If a direct conversation doesn’t resolve the issue, you may need to inform your manager, HR department or a company ethics hotline.

 Don’t…

  • Forge ahead without a plan: Spend time rehearsing how you’re going to address the situation to test your thought process and have a planned approach.
  • Make accusations: Keep the focus on understanding the situation. Leading with questions like, “Can you help me understand?” or “Can you help me see?” can help establish if the individual is open to a productive discussion and may help them see your perspective.

Know What is Ethical

There are ethical aspects to every individual and organizational decision. Unfortunately, when an organization’s leadership makes unethical decisions or even asks employees to conduct business in an unethical matter, this can permeate the company culture and the ethical decision-making process of the entire organization. Maintaining your own ethical awareness and practicing sound judgment are essential as you decide what steps to take in dealing with ethical dilemmas. Not only can this help you to make better-informed decisions that align with your values, this may also even help you to be an ethical example for your coworkers and superiors that can lead to a more effective and ethical organization.

Learn more about MSU’s MS in Management, Strategy and Leadership program.

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