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Armstrongs Handbook of Human Resource Management Practice 1

Resolving ethical dilemmas

As  Adam  Smith  (1759)  wrote  in  The  Theory  of 



Modern Sentiments (quoted by Harrison, 2009: 246): 

‘When ethically perplexed, the question we should 

always ask is: would a disinterested observer, in full 

possession  of  the  relevant  facts,  approve  or  dis-

approve  of  our  actions?’  This  guidance  is  just  as 

compelling and relevant today.

Woodall and Winstanley (2000: 285) suggested 

that  ‘being  ethical  is  not  so  much  about  finding  

one  universal  principle  to  govern  all  action,  but 

more about knowing how to recognize and mediate  

between often unacknowledged differences of view’. 

By definition, an ethical dilemma is one that will be 

difficult to resolve. There may be all sorts of issues 

surrounding  the  situation,  some  of  which  will  be 

unclear or contentious. The extent to which people 

react or behave rationally may be limited by their 

capacity  to  understand  the  complexities  of  the  

situation they are in and affected by their emotional 

reactions to it (the concept of bounded rationality). 

As Harrison (2009: 331) explained:

Some of the factors that militate against a purely 

‘rational’ approach include confused, excessive, 

incomplete or unreliable data, incompetent 

processing or communicating of information, 

pressures of time, human emotions, and differences 

in individuals’ cognitive processes, mental maps 

and reasoning capacity.

Faced with factors such as these the process of ethical 

dilemma resolution can be hard going.

There is no ‘one right way’ to deal with an ethical 

issue,  but  an  approach  based  on  systematic  ques-

tioning,  analysis  and  diagnosis  to  get  at  the  facts 

and  establish  the  issues  involved  is  more  likely  to 

produce a reasonably satisfactory outcome than one 

relying purely on ‘gut feeling’. The following check-

list – used judiciously and selectively according to 

the  circumstances  –  can  provide  a  basis  for  such 

questioning and analysis.




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