The Biggest Ethical Dilemma You Face As a Leader

As leaders, we are faced with challenging situations on a daily basis.

We need to make hard decisions that can have lasting consequences for our organization and the teams involved.

But there is one ethical dilemma that all leaders face throughout their careers, no matter their level.

This is the balance that we need to strike between the best interests of the organizational goals and the well-being of the individuals on our team.

There are some ways in which this ethical dilemma presents itself in practice, and that we need to be watchful for.

Layoffs and Workforce Reductions

Let’s start with the most notorious of all: downsizing.

As leaders, we are responsible for supporting the business and financial health of the company. And in order to do that, at times we need to make the difficult decision of handing out pink slips to our team members or restructuring the org as a whole.

But, as leaders, we are also responsible for the well-being of our teams. After all, they work for us and expect a culture that values people and their relationships.

And that presents an ethical dilemma. How do we balance the competitiveness of the organization as a whole, with minimizing harm to our employees?

I have seen poor leaders who are not able to handle this balance effectively. There are leaders who treat everything as a business transaction and treat employees are mere resources or numbers on the spreadsheet. They keep reminding their teams that everyone is dispensable, including themselves. Granted, that is a harsh truth, but a leader needs to handle sensitive topics more maturely and contextually, rather than matter-of-factually.

And then there are leaders on the other extreme. These leaders value employee well-being and humanity over everything else, and they forget that they are ultimately working for a business. They find themselves opposing (directly or passive-aggressively) the policies of the company and make it hard to execute downsizing decisions.

Confidentiality and Transparency

As leaders, we have access to sensitive information that is meant to be processed only at certain levels. This information includes employee compensation data, performance ratings, and confidential feedback. This also includes confidential decisions that are yet to be disclosed or executed, such as the decision to change company strategy, or to make an acquisition, etc.

On the other hand, as leaders, we also strive to be transparent and authentic when it comes to sharing information with our teams. We want to win the trust of our teams and make sure they feel informed and not in the dark. We also want to be genuine and honest with them when it comes to sharing information or our own views on important matters.

And need to balance transparency with the obligation to maintain confidentiality presents the ethical dilemma: How much do we share and how much do we protect? At times we need to pretend that nothing is happening when we know that a big storm is coming (e.g., downsizing). This requires maturity, and the ability to handle information so that it is protected, and shared only with the right audience and with the right context.

Diversity and Inclusion

Diversity, equity, and inclusion are buzzwords in the corporate world today. But how easy are these to foster?

As leaders, we want to hire the best talent based on meritocracy. We want to promote the most capable individuals in the team. We want to reward for performance and output. That is the right thing to do.

However, in some situations we may face a dilemma: what if the smartest and most qualified candidate for a position on your team does not satisfy the diversity goals in your organization? What if the person who is most suitable for an executive position on your staff belongs to the majority ethnic group already on your staff?

I have run into similar challenges over the years, and it is never easy to solve. As leaders, we are always faced with dilemmas related to fostering diversity, equity, and inclusion within our teams, while ensuring that we do what is right for the business.

Conclusion

As leaders, we are faced with challenging ethical dilemmas as part of our work. Some examples of situations that present these dilemmas are:

• Layoffs and workforce reductions
• Confidentiality and transparency
• Diversity and inclusion

These situations are not easy to handle and ultimately require us to navigate them with integrity, empathy, and a commitment to doing what is right. That said, these situations are always difficult, and you need to make a decision in the context and the circumstances involved.

Have you faced any of these ethical dilemmas in your experience? Share your stories and strategies for dealing with them in the comments below!

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