Can you make tough choices
Business leaders confront tough choices on a regular basis. Many times these choices appear as ethical “dilemmas”. Acting ethically is knowing what is “right” and what is “wrong” and, then, choosing the “right” path. However, no all situations are that clear cut. Ethical “dilemmas” are situations for which there is no clear-cut right answer. In fact, the situation itself may not even be defined as ethical to some. What might appear as a clear choice between “right” and “wrong” in one situation might be more ambiguous in another context.
Most of us want to do the "right thing" but, many times, we do not know what the “right thing” is. All choices may appear “wrong” or lead to undesired outcomes. Furthermore, leaders may often be criticism for acting “unethically” by those who are distant from the facts and do not see to downside of the available options.
Consider the following situation:
Jane is the sales manager for an office furniture distributor. The company is a division of a publically traded company. She is leading a competitive bidding process against two other companies. The bid is worth $4 million in new sales. Business has been very difficult this year. Her company is on the verge of having to do a layoff. Winning this business will allow the company not only to keep all its employees but also to pay a modest bonus. Jane’s commission on this sale would be $10,000.
Jane is cautiously optimistic about her chances. She has been getting signals from the customer purchasing agent that her firm is in the lead.
A week before the announcement of the winning bid, the purchasing agent calls Jane. Here is how the conversation goes:
“Jane, you and your team have done an excellent job on this bid. As you know, we will be making the award next week.
I wanted to let you know that our CEO is being honored by the local Alzheimer's Association charity for her years of support. I’m sure she would appreciate your firm making a generous contribution. Can I count on you to purchase a company advertisement and a table for 10 for $1,000?”
Jane knows that her company has a firm policy against gifts to customers in excess of $50. What should Jane say and do?
Some see this as a clear ethical decision between “right” and “wrong” while others see it as a dilemma with no obvious answer. What’s your view?
Pushing the Edge Questions
1. Is this an ethical situation? Why?
a. Yes, it is a clear ethical issue with a clear right and wrong.
b. Not sure. This is an ethical dilemma with no clear right or wrong.
c. No. This is a business decision on whether to make a charitable contribution.
2. What would you say and do if you were Jane? Why?
a. Decline; state the company policy on gifts to customers and inform her immediate superior, VP of Sales.
b. Decline; state the company policy on gifts to customers and not inform anyone of the conversation.
c. Make a personal contribution of $1,000 using personal funds for the table only and not inform anyone of the conversation.
d. Make a personal contribution of $1,000 using personal funds for the table only and inform her immediate superior, VP of Sales.
e. Commit $1,000 for advertisement and company table. Inform her immediate superior, VP of Sales, to fulfill company donation.
f. Make no commitment. Refer matter to her immediate superior, VP of Sales.
g. Other. Explain.
3. What would you colleagues do?