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Collins Instructor’s Guide
CHAPTER 5 ETHICAL DILEMMA ANALYSIS
Each chapter contains three real-life ethical dilemmas: (a) What would you do? (all scenarios
provided by my students), (b) Let’s Build a Building (all scenarios provided by a construction
consultant), and (c) In the Real Word: Enron (more in-depth explanations available in Denis
Collins (2006) Behaving Badly: Ethical Lessons from Enron).
Have students apply Exhibit 5.11 “Critical Thinking Decision-Making Process Table” to analyze
these ethical dilemmas (instructions below). By doing so, students develop a habit for analyzing
decisions that take into consideration ethical concerns.
Step 1: Write the decision options in the appropriate column below.
Step 2: Apply the seven “Applying Ethical Theories to Decision Making” questions to the
decision to obtain relevant ethical information.
Step 3: Insert the ethical strength and weakness revealed by each of the seven ethical questions in
the appropriate column below.
Step 4: Review the option strengths and insert in the options column what “value” supports the
option (i.e., honesty, loyalty, efficiency, respect, job security, profits, etc.)
Step 5: Given the strengths and weaknesses, choose a decision option, explain why that option
and value were chosen rather than the alternative options, and determine how to manage the
weaknesses associated with the option chosen.
NOTE ON ETHICAL DILEMMA ANALYSES AND AUTHOR RECOMMENDATION – The
“author” (me) is stating his best judgment. All the ethical dilemmas are difficult and involve
tradeoffs, some more so than others. As noted throughout the textbook, everyone has a different
moral intuition and those reasoning at the same level of moral development can disagree about
the right thing to do. In addition, everyone has a different level of risk comfort (my risk comfort
is rather high). The teacher can use my recommendation as grounds for student agreement or
disagreement.
CHAPTER 5 ANALYSIS FOR WHAT WOULD YOU DO?
1) Who are all the people affected by the action?
2) What option benefits me the most?
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3) What option does my social group support?
4) What option is legal?
5) What option is the greatest good for the greatest number of people affected?
Tell Deb what really happened (#2): Emily is misusing the company’s financial resources.
This is probably not the first time she’s done this, and she may do it again. In addition, Emily
6) What option is based on truthfulness and respect/integrity toward each stakeholder?
Tell Deb what really happened (#2): Emily and everyone else is lying to Deb. You did
7) What option would a virtuous person do?
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
Deb finds out what employee
training is being missed and needs
remediation.
Option and Value
#1: Tell Deb it was interesting as instructed by Emily: Loyalty to Emily
Chosen Because #1: Tell Deb it was interesting as instructed by Emily: This is probably not
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#2: Tell Deb what really happened: You want to be honest with the owner,
How Will You
#1: Tell Emily you never want to participate in a situation like this again,
AUTHOR’S RECOMMENDATION: Option 2: Tell Deb what really happened – This is based
on cultural relativism, utilitarianism, deontology, and virtue ethics. As the owner, Deb has the
right to know what really happened. Emily and everyone else is lying to Deb. You did promise
Emily that you would lie to Deb, but breaking a promise about unethical activities is not a
compelling. A moral obligation to keep promises about illegal and unethical behaviors is weak.
Exercise your moral courage by requesting that Deb speak directly with Emily about what
happened, and warn Emily so she can develop the moral courage to inform Deb about what
happened.
CHAPTER 5 ANALYSIS FOR LET’S BUILD A BUILDING
1) Who are all the people affected by the action?
2) What option benefits me the most?
3) What option does my social group support?
Mixed: Different social groups may have different preferences. Some managers might prefer
4) What option is legal?
5) What option is the greatest good for the greatest number of people affected?
6) What option is based on truthfulness and respect/integrity toward each stakeholder?
Mixed: Employees need to operate in buildings of high integrity, which requires high quality
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7) What option would a virtuous person do?
High quality rule (#3): Moral character can be strengthened by hiring the highest quality
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
plumber) are hired
#2: All clients rule All clients are hired
Plumber does low quality work
#3: High quality
rule
Highest quality is upheld
Plumber client is not hired
Option and Value
#1: Low-Bid rule: Financial benefits
Chosen Because #1: Low-Bid rule: Saves company money and two of three clients are
hired
How Will You
Manage Chosen
#1: Hold plumber to higher quality standards and inform HVAC client that
you could not afford the high cost
AUTHOR’S RECOMMENDATION: A different option mix – Virtue ethics favored the high
quality rule (#3), but the HVAC client is twice as expensive as the acceptable low-bid HVAC.
Modify the high quality rule with some cost limitations. Hire the low-bid dry waller client who
does high quality work. Plumbing is essential to an efficiently operating building and employee
morale, so do not hire the low-bid plumber client due to low quality work. Inform the plumber
why not being chosen and recommend additional quality training. Inform the HVAC client about
your cost concerns and see if costs can be lowered. If not, then hire the low-bid HVAC who does
quality work, but not as high quality as your HVAC client.
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CHAPTER 5 ANALYSIS FOR IN THE REAL WORLD: ENRON
1) Who are all the people affected by the action?
2) What option benefits me the most?
Promote Skilling (#2): The next COO is responsible for my legacy. All four candidates have
strengths and weaknesses. But if Skilling is not promoted, he could quit the company and
3) What option does my social group support?
Promote Skilling (#2) or one of the other two internal candidates (#4): Typically, if all else is
4) What option is legal?
5) What option is the greatest good for the greatest number of people affected?
Promote Skilling (#2): Skilling has tremendous abilities; he just needs to be coached better. If
6) What option is based on truthfulness and respect/integrity toward each stakeholder?
Promote Skilling (#2) or the Outsider (#4): Skilling has earned the promotion, but he has
made enemies. If promoted, he needs to be trained how to manage people and given
7) What option would a virtuous person do?
Promote an Outsider (#4): Moral character can be strengthened by resisting Skilling’s
bullying attempts. He needs to improve his interpersonal relations. The traditional pipeline
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
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Prone to high risk
from within
Option and Value
#1: Pipeline CEO; Tradition
Chosen Because #1: Pipeline CEO: Consistent with historical CEO career path
#2: Skilling: Expertise in growth area, revenue generation
How Will You
Manage Chosen
#1: Pipeline CEO: Train in growth area, special perks for Skilling to stay
#2: Skilling: Training in interpersonal relations
AUTHOR RECOMMENDATION: Option 2: Promote Skilling, or Option 4: Promote Outsider –
Promoting Skilling is based on egoism, social group relativism, cultural relativism,
utilitarianism, and deontology. Promoting Skilling benefits you, the organization, and
shareholders. Have a long conversation with Skilling and determine his willingness to improve
his interpersonal management skills. If he agrees, then promote Skilling and hold him
accountable for improving his interpersonal skills. If he refuses, then offer the job to the highly
qualified outsider (#4) who can create harmony among the managers, and offer Skilling special
perks to remain with Enron. Promote from within whenever possible for employee morale. There
is a very high likelihood that Skilling is likely to quit if Mark or the traditional pipeline CEO are
promoted, a loss that might be very difficult to recover from.
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