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It occurs when the right and moral action is not taken
Managers often face ethical dilemmas in the workplace but may not aware of it. One reason is the manager is not trained in ethics so it is difficult to know when an ethical issue exists. The first step in making ethical decisions is to be sensitive to the ethical signposts. For example, consider whether conflicting interests exist in the situation. Ask whether your decision harms one or more parties while benefitting others.
Ethical decision making requires that we consider the consequences of our actions on others – the stakeholders in the situation -- prior to making a decision. For example, members of top management should always consider how their actions affect shareholders, creditors and employees. A production manager should consider the effects of operational decisions on production workers, suppliers and the customer. A marketing manager should be sensitive to whether advertised product information is truthful and does not mislead consumers.
Lack of decision making from ethical aspects, management aspects and more.
ethical dilemmas are situations that challenge one's ability to choose the most ethical course of action. They arise when there is difficulty in carrying out effective ethical action or when difficulties arise in finding strategies that effectively avoid future ethical obstacles.