In today’s rapidly evolving business landscape, managers are increasingly confronted with complex ethical dilemmas that go beyond profitability and legal compliance. These decisions can significantly affect not only the organisation’s success and reputation but also the well-being of employees, customers, and the broader community. To address these challenges, managers may adopt one or more ethical frameworks to guide their decision-making. Four prominent approaches include the utilitarian (or consequence-based) approach, the rights-based approach, the virtue-based approach, and the care-based approach. Each of these strategies offers distinct strengths and limitations, and the best choice often depends on the specific context, the organisation’s values, and the individuals involved. Understanding these approaches allows managers to make more informed and morally responsible decisions that balance the needs of all stakeholders.

1. The Utilitarian or Consequence-Based Approach

A utilitarian approach to ethical decision-making focuses on the consequences of actions, aiming to choose the option that maximises benefits for the greatest number of people. Managers who apply this method will weigh the potential costs and benefits of their choices, seeking to achieve the most favourable outcome overall.

For instance, consider a scenario where a manager has the opportunity to organise a city-sponsored sports event that could attract a large audience and generate significant revenue. However, a small group of residents living nearby may be inconvenienced by noise, or their property might suffer damage due to the influx of visitors. Additionally, there is the risk of injury to participants, though liability waivers might mitigate financial risks.

A manager using the utilitarian approach would likely decide to go ahead with the event if the benefits—revenue, entertainment, and community engagement—outweigh the potential downsides. While this approach may seem pragmatic, its focus on the majority’s benefit often overlooks the rights and concerns of the minority.

Advantages:

  • Maximises overall benefit, increasing revenue and customer satisfaction.
  • Provides a clear, structured decision-making framework by weighing costs against benefits.

Disadvantages:

  • Can lead to the marginalisation of minority interests, such as local residents or vulnerable individuals.
  • May underestimate hidden or long-term costs, such as potential lawsuits or damage to the organisation’s reputation.
  • Focuses on short-term gains without necessarily considering the broader social or moral implications.

In this approach, the manager might choose to proceed with the event, only to later face legal challenges from disgruntled residents or participants. Furthermore, negative publicity could tarnish the organisation’s image, particularly if media reports focus on those who were negatively impacted. Thus, while utilitarianism seeks to achieve the most good, it may inadvertently lead to unforeseen problems.

2. The Rights-Based Approach

The rights-based approach, rooted in deontological ethics, focuses on an individual’s rights and the duties that others have in relation to these rights. This model requires managers to consider whether they are obligated to act (positive rights) or refrain from acting (negative rights), based on ethical principles such as fairness, justice, and respect for human dignity.

For example, imagine a manager running a community recreational centre. Some participants may struggle to access certain programmes due to disabilities, financial hardship, or lack of basic skills. In this scenario, the manager must assess whether they have an obligation to make accommodations for these disadvantaged individuals, such as offering subsidised fees or creating more inclusive programmes.

Advantages:

  • Emphasises fairness and justice by ensuring the rights of all individuals are respected.
  • Encourages managers to consider their moral duties towards different stakeholders.

Disadvantages:

  • Can be financially burdensome if accommodating the rights of everyone leads to unsustainable costs.
  • May not always be practical, especially when the organisation relies on fees or private funding to operate.

A manager using this approach might offer targeted solutions, such as creating a volunteer programme to help low-income individuals participate in activities. However, if the centre is privately funded and there is not enough interest to justify these accommodations, the manager may conclude that there’s no obligation to provide such services. Although this might seem fair from a financial standpoint, it could lead to frustration among those excluded, potentially prompting legal or public relations challenges.

3. The Virtue-Based Ethical Reasoning Approach

The virtue-based approach to ethical decision-making is deeply rooted in the personal integrity and moral character of the manager. Rather than following a specific rule or focusing solely on consequences, a manager applying this approach would make decisions based on what they believe is the right thing to do, considering their values, organisational culture, and perhaps even their religious or spiritual beliefs.

For instance, suppose a manager of a youth sports programme encounters a case of bullying. One child is bullying another, and while the victim’s family is concerned, the bully’s family is influential and financially supports the programme. A manager using a virtue-based approach would focus on fostering an environment of fairness and respect. Rather than prioritising financial considerations or simply applying rules, they might arrange a meeting between the two families to promote understanding and resolution, seeking to address the underlying issues in a compassionate manner.

Advantages:

  • Focuses on long-term character development and ethical consistency.
  • Promotes holistic solutions that strengthen relationships and resolve underlying conflicts.

Disadvantages:

  • Can be time-consuming, as it often requires collaboration and consensus-building among various stakeholders.
  • The subjective nature of virtue ethics may make it difficult to implement in large, diverse organisations with conflicting interests.

Using this approach, a manager may facilitate a conversation between the two families, encouraging the children to resolve their differences and the parents to support a positive outcome. While this might take more time and effort, it could lead to a stronger, more cohesive community, where participants feel valued and understood. However, not all parties may be willing to engage in such discussions, and the process can be more resource-intensive.

4. The Care-Based Approach

The care-based approach, also known as the ethics of care, emphasises the importance of empathy, relationships, and the interconnectedness of individuals when making ethical decisions. This framework encourages managers to consider the emotional and relational aspects of decision-making, focusing on the well-being of those most vulnerable or directly impacted by their actions. It contrasts with the impersonal nature of rules or consequences and centres on human relationships and the duty of care a manager owes to employees, customers, and other stakeholders.

For example, a manager might be faced with the decision of whether to lay off a group of employees to cut costs during a financial downturn. A strictly utilitarian approach might justify the layoffs as necessary for the organisation’s survival, benefiting the majority of stakeholders. However, a care-based approach would prompt the manager to consider the personal impact on those employees being laid off—their families, mental health, and financial stability. The manager might explore alternatives, such as reducing working hours or offering additional support services, before making such a decision.

Advantages:

  • Strengthens trust and loyalty within an organisation by showing concern for the well-being of individuals.
  • Promotes a workplace culture of empathy, making employees feel valued and supported.
  • Helps create more ethical workplaces by prioritising human relationships over purely financial or practical outcomes.

Disadvantages:

  • Can conflict with organisational goals when the needs of individuals are prioritised over the collective good.
  • May lead to difficult decisions where the emotional and personal needs of individuals clash with business realities.

In using a care-based approach, a manager may decide to offer a voluntary severance package rather than compulsory layoffs or work with employees to help them find new opportunities. This approach can foster goodwill and preserve long-term relationships, even if the short-term financial gains are not as immediate. However, it may not always align with the company’s bottom line, and there is a risk of allowing emotional factors to cloud judgement when difficult decisions must be made.

Conclusion

Each ethical approach offers distinct advantages and challenges. Utilitarianism prioritises the greater good, but may neglect the concerns of minority groups. Rights-based ethics focus on fairness and justice, though they can be difficult to implement in resource-limited environments. Virtue-based ethics emphasise personal integrity and moral character, but can be time-consuming and subjective. The care-based approach, grounded in empathy and relationships, promotes compassion but may struggle to balance individual needs with organisational goals.

In practice, managers often use a combination of these approaches, adapting them to the specific context and needs of their organisation. Ultimately, ethical decision-making is crucial for building trust, maintaining a positive organisational culture, and ensuring long-term success. By considering the broader impact of their choices and adopting a balanced ethical strategy, managers can navigate complex moral challenges and foster a more inclusive and responsible workplace.