Ethical Dilemma in Organizations





Ethical Dilemma in Organizations

The Core Problem

In this particular case, the main problem involves the collision of the company’s ethical values with the needs and demands of its prospective clients. Accordingly, Jay McGuane had focused his resources on the development of an ethical bank. The primary objective of the respective institution involved the facilitation of environmental sustainability. Moreover, the firm concentrated on setting guidelines and policies that determined the loans that the company would approve or rebuff depending on the respective values. However, in this particular situation, the organization had to confront its values due to the requests forwarded to it by an organization that participated commonly in fracking as well as another that operated as a gun manufacturer.

The Main Issues

Consequently, three main issues were responsible for the derivation of the fundamental problem in the first place. Foremost, the organization had set policies and guidelines that abided by strict and fixed ethical values. As such, the dilemma arose due to the conflicting nature of the prospective clientele’s requirements from those of the values emphasized by the company about loan approval or rejection. Secondly, the profit motive was particularly a determining factor. Typically, companies are established due to profit incentives. In this case, the profit aspect undoubtedly influenced the derivation of the dilemma in the first place. Lastly, the conflicting and complex nature of ethical principles made the problem even more convoluted than anticipated.


In recommendation, the problem can be solved by first carrying out an assessment of the organization on ethical grounds. If both organizations were deemed as unethical, then the bank would ensure that it averts from carrying out business with the respective entities. Secondly, the organization should abide by its ethical conduct. Failing to follow the code will only render it useless and affect the company in the future especially if it is faced with more morally complex issues. Lastly, economic assessments of the possible alternatives that are guided by the company’s ethical conduct should be carried out to determine the best possible alternative applicable for the respective situation.

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