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Why ethical dilemmas are so important to managers?

An ethical dilemma occurs when an individual or team must make a decision that involves multiple values. Such a dilemma does not simply involve choosing right over wrong because there may be several competing values. Thus, action taken to comply with one value may violate another. 
 
For this reason, resolving ethical dilemmas can be quite challenging. The ethical issues facing managers and other employees have grown in significance in recent years, fueled by public concern over how business is conducted. Not only are there potential legal and complex cross-cultural issues involved in ethical dilemmas, but also typically there are no clear-cut right or wrong answers. Since the potential for serious mistakes in handling ethical dilemmas is great (with both personal and organizational ramifications), they are of considerable importance to managers and employees. Employees who have mastered the ethics competency can more easily deal with these dilemmas. 
 
The ethics competency involves the ability to incorporate values and principles that distinguish right from wrong in making decisions and choosing behaviors. Ethics are the values and principles that distinguish right from wrong.

Top management leadership, policies and rules, and the prevailing organizational culture can do much to reduce, guide, and assist the individual regarding ethical dilemmas. In addition, the core components of the ethics competency provide general guidance that may be applicable when dealing with ethical dilemmas. These components include the ability to: 
(1) identify and describe the principles of ethical decision making and behavior; 
(2) assess the importance of ethical issues in considering alternative courses of action; 
(3) apply governmental laws and regulations, as well as the employer's rules of conduct, in making decisions and taking action within a person's level of responsibilities and authority; 
(4) demonstrate dignity and respect for others in working relationships; and 
(5) demonstrate honesty and openness in communication, limited only by legal, privacy, and competitive situations.