Making Ethical Decisions

By Mark Fulton

The businessman decided it was time to give his daughter, a recent business school graduate, a little lecture on integrity. “In business, ethics are very important,” he began. “Say, for instance, that a client comes in and settles his $100 account in cash. After he leaves, you notice a second $100 bill stuck to the first one. Immediately you are presented with an ethical dilemma ...” The businessman paused for dramatic effect. “Should you tell your partner?”

Business guru Peter Drucker has observed, “Ethics stays in the preface of the average business science book.” Assuming that’s true, how does the average business school graduate or seasoned business owner develop a knack for making ethical business decisions? There are two parts to the answer.

First, integrity doesn’t suddenly invade your character one day while you’re studying a business science book any more that it does when you watch an episode of “Touched by an Angel.” Moral values are instilled through the training people receive while growing up. In reality, there is no such thing as “business ethics.” Doing the right thing—regardless of whether you’re a corporate chief or a cab driver—springs from the essence of who you are as a person.

The second part of learning to make ethical decisions is a matter of methodology. Sometimes the ethically correct solution to a problem isn’t readily apparent. Wanting to do right is often just the first step in a process for reaching an ethical result that requires carefully considering many factors.

In this column we’ll examine four of eight steps for making an ethical decision. The other four steps will be covered in my next column.

Answer the following questions thoroughly before making a decision involving a matter of ethics. These questions can be used in personal decision making or as part of a group discussion involving an ethical issue.

1. What are the facts?
   Joe Friday had it right: get the facts before you act. An ethical decision is first an informed decision. Defining a problem or issue accurately and fairly means examining all of its elements, including those that support an unpopular position. Considering a statistic or detail that you might wish to ignore can sometimes bring a new perspective to a decision and place you in the best position to find the ideal solution.
   
   Thorough fact gathering also helps to defuse the emotional aspect of a dilemma. Making sure that all of the pertinent data is on the table during the discussion of an ethical issue can help you avert charges of partiality.
   
   Collecting all of the facts may also reveal areas for agreement shared by conflicting interests that aren’t immediately apparent. Sometimes the key to resolving an ethical difficulty with the least amount of animosity is hidden among the fine details.
   
   
2. What are my alternatives?
   Like gathering all of the facts, considering all of the alternatives is an important part of ethical decision making. Ask yourself how you would define the problem if you stood on the other side of the fence. Taking this step forces you to step aside from self-interest to ponder the impact of every choice.
   
   Looking at all possible solutions also promotes empathy for the parties in the decision who may suffer loss or annoyance once the decision is made. The discomfort a decision may cause others should prompt you to reject the expedient in favor of the most reasoned and responsible course of action.
   
   
3. What parties will be affected?
   Carefully think about all the people and organizations that your decision will touch. Don’t limit your thinking to the immediate subjects of the decision. If it is appropriate, your decision should include consideration for the relatives and other affiliations of the people and groups who will be affected.
   
   Invite representatives of the interested parties to participate in weighing the ethics and ramifications of a decision, even if deadlines are pressing or hostile questions are certain. As Stephen Covey teaches, win-win is the best solution, even when it requires the input of an antagonist.
   
   
4. What do I owe each of these parties?
   Ethical decisions often involve conflicting rights. How will this decision impact your rights as a person, an employee, a business owner, a supervisor? Now answer the same question regarding the rights of the other people and groups that are part of the decision. An honest attempt to respect the rights of all parties involved in a decision before the decision is made demonstrates a high ethical standard of leadership.
   
   Decisions get tougher when loyalties are factored in. Have you ever been faced with a decision that involved: a clash between your personal convictions and corporate policy; an action that violated company guidelines; a tactic that could adversely affect your community?
   
   When facing an ethical decision, you must ask yourself to whom or what do you owe the greater loyalty. The answers could be: your conscience, your family, your boss, your company or society in general. Once you have determined the right thing to do, being faithful to obligations, duties and relationships may be the deciding ingredient for making your final decision.
   
   The joke at the beginning of this column is funny because it violates our expectation that the businessman is going to tell his daughter to return the money to the customer. Unfortunately, it’s all too easy to overlook the steps required to make a sound real-life ethical decision—and that’s no joke.
   

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I have developed a 90-minute presentation titled "Four Pillars of Fantastic Customer Service." In this presentation I cover the key components for providing outstanding customers service and turning customers into raving fans. If you know of a group that would like to include this topic in their next conference, please have them contact me at:

Mark Fulton
CoachCare
(757) 533-9650
mark@coachcare.com

Copyright 1999 © Mark S. Fulton