Making business decisions is difficult enough. It’s easy to become overwhelmed when there are numerous choices, potential paths, and outcomes. That alone would give any leader a headache but throw in an ethical dilemma, and it all becomes that much more complex.
I’m not going to sit here and say that I’ve always made the right decisions. Any professional—any person—worth their salt is open and honest about their mistakes. I strive to be the kind of guy myself.
I say that to acknowledge that this is all an exercise in trial and error. When you’re trying to be an ethical and responsible leader, it’s not always as clear-cut as we would like it to be. Sometimes, the black-and-white decisions become gray.
Based on my experience, I would like to share a few steps to help you navigate ethical dilemmas when you’re in a leadership role. Hopefully, this process will help you as it has helped me!
9 Steps for Navigating an Ethical Dilemma in Leadership
Step #1 – Clearly Define the Ethical Dilemma
Ask:
What exactly is the decision at hand?
Which values, principles, or obligations conflict?
Who is affected, and how?
As you answer these questions, frame the dilemma in neutral terms. It would be a mistake to rationalize a preferred outcome upfront. Get the facts down on paper. Once you identify the specific ethical conflict, you can better weigh the opportunity cost of each choice.
Step #2 – Gather All Relevant Facts
Make sure to:
Distinguish between facts, assumptions, and opinions.
Understand the context (legal, cultural, organizational).
Engage with stakeholders to gather diverse perspectives.
Avoid basing decisions on incomplete or biased info. There’s something to be said for analysis paralysis—but don’t let being overwhelmed stop you from following through with due diligence. Pay special attention to the potential legal ramifications.
Step #3 – Identify the Stakeholders
Consider:
Who will be affected (directly and indirectly)?
How will your choice impact each stakeholder?
Are there vulnerable parties who need special consideration?
As a leader, you’re responsible to and for a team. That can include employees, managers, stakeholders, investors, partners, and more. You’ll have to answer to them, at the very least.
Step #4 – Consider Core Values and Principles
Use ethical frameworks to assess options:
Utilitarianism: What produces the greatest good for the most people?
Deontology: What are your duties or obligations regardless of outcomes?
Virtue Ethics: What action reflects the character you aspire to?
Justice/Fairness: Are outcomes distributed equitably?
Now, these aren’t all the ethical frameworks you can ascribe to. I certainly discourage picking an ethical framework solely to justify a decision. This is more about drawing your lines and values in the sand. What values does your organization or profession claim to stand for? What do you want to stand for?
Step #5 – Test for Long-Term Consequences and Reversibility
Ask:
What if this decision became public? Would you be comfortable if your decision made headlines tomorrow?
Would you be comfortable if someone did this to you (a la the Golden Rule)?
Would it be okay if everyone in your position did the same thing?
These things might not happen, but that’s not the point. It’s more about being able to bear the potential consequences, ripple effects, and backlash.
Step #6 – Explore Alternatives and Compromises
Can you:
Find a solution that honors more than one value?
Delay the decision until you have greater clarity?
Pilot a solution or choose a reversible option?
Decisions are incredibly difficult when there’s no clear way forward without some ethical compromise. Look for ways to experiment, compromise, and innovate solutions. Is getting a particular outcome worth the cost? Or can you settle for “less” for the sake of ethics and integrity?
Step #7 – Seek Wise Counsel
Talk to mentors, legal advisors, or ethics committees. You need wise counsel here—not yesmen. Talk to the people you trust to push back when you’re wrong. And, in general, listen to people who aren’t like you. Diverse input often exposes blind spots or offers creative solutions.
Step #8 – Make a Decision and Own It
After weighing everything, act decisively. Communicate transparently about the reasoning behind your decision. You should be able to stand on your decision with conviction, even knowing not everyone will agree with you.
Still, be willing to revisit and revise if new information emerges.
Step #9 – Reflect and Learn
After the fact:
What went well or poorly?
What feedback did you receive?
What will you do differently next time?
Ethical leadership is a skill that improves through reflection and experience. We’re all learning and growing, here. Just move forward with conviction and integrity!
What is the most difficult decision you’ve faced over the course of your career? Share your story in the comments.