How to Manage an Ethical Crisis

iv id="body">4. Construct an accurate picture.
Most people experience pressures to achieve goals;An ethics committee first needs to establish the facts
and different people respond differently. Some maythat lead to a clear understanding of the situation.
even resort to unethical conduct that, over time, is likelySome of the questions to be considered at this stage
to affect both the individual and the organizationwould include:o Do we have a problem-a genuine
adversely. As a result, you may have an ethical crisiscrisis?o What is the problem?o What are the known
to deal with. Because in most organizations thefacts?o What has caused this situation to arise?o
approach to ethics is usually crisis-driven, it isWho are the stakeholders involved?o What options
appropriate to be prepared for such an event. Hereare available to us in dealing with the problem?
are some important considerations...5. Adopt an organizational perspective.
1. Adhere to established management practices.Identify which of the organization's ethical principles or
To put a positive spin on a negative situation, an ethicalcodes of ethical conduct have been breached. The
crisis within your organization provides a greatability to take this action illustrates the importance of
opportunity to demonstrate your managerial capabilities.ensuring that the organization's code of ethical conduct
Ensure that you:o Act immediately. Management is allis a practical document. Having made clear the
about action and implementation-getting things done.organization's position, the committee needs to ask the
Although staff under pressure may not fullyfollowing questions:o Is additional information required
understand the implications of inappropriate and hastybefore a decision can be made about the particular
actions, inaction on your part can never be excused inbehavior?o What would happen if we did nothing?o
relation to behavior that breaches the organization'sAre there loyalties that may be threatened?o Are
code of ethical conduct.o Provide support. You needthere other people who need to be involved in making
to be sensitive to individuals' needs, and to shape,a decision to act?
direct, and focus them for the benefit of the group as6. Deliberate prior to making any decision.
a whole.o Show leadership. Your exemplary behaviorDecisions on ethical issues should not be made as
will demonstrate that to be ethical is to focus on theknee-jerk reactions. You may, for example, consider
cultural goals of the corporation as well as theapplying a worst-case scenario as a tool to help the
business goals.committee choose between competing options. The
2. Keep the crisis in context.committee might ask whether a report of the crisis
Ethical dilemmas are an ongoing struggle for strugglewould be likely to be reported on the front page of
for organizations everywhere. First, in any crisis, ensureyour major daily newspaper. If so, what would the
that the event constitutes a genuine ethical crisis. Apublic response be?What actions, therefore, should
perceived crisis could involve resolving a conflict,apply? When the issue of broader community concern
clarifying ambiguities, dealing with stress, or managinghas been addressed, consider these questions:o
problems associated with ongoing change. GenuineShould the problem be discussed with the affected
ethical crises are most often associated with far moreparties before a decision is made?o How sensitively
stressful ethical predicaments-too-good-to-be-missedshould the situation be handled to prevent or minimize
opportunities, super ordinate goals, and otherharm to stakeholders while at the same time upholding
adrenaline-raising activities-or ambiguous situations suchthe organization's values and arriving at a workable
as indiscriminate use of sick leave or disregard byand acceptable situation?o Is the committee confident
management for workplace safety. Dealing with thethat the position adopted will be valid over a long
ethical dilemmas stemming from these situations is theperiod?o How can we ensure that such a situation will
real challenge.not arise again?
3. Adopt a mechanism for dealing with crises.7. Implement a plan of action.
Establish a group within the organization withWhen the decision has been made, the committee
responsibility for dealing with ethical crises. This ethicsshould compile, implement, and monitor an action plan
committee, representing all groups within theincluding details of how to inform all those who need to
organization, is a much better alternative than havingknow the outcome of the investigation. That list could
one person try to deal with such dilemmas. Theinclude the boss, the board, some or all employees,
committee structure would also allow staff to raiseaffected families, and the broader community.
concerns without fear of recrimination.