The document discusses an ethical dilemma faced by a project manager who underestimated costs for an IT project. It analyzes the situation using three approaches: Utilitarian, which focuses on greater good even if wrong actions are taken; Deontological, which prioritizes doing the right thing regardless of consequences; and Virtue Ethics, which depends on the virtues of the individual. While Utilitarianism could justify withholding costs, it undermines integrity. Being transparent about costs maintains integrity and may still allow the project's benefits to convince the sponsor. The best approach is for the manager to honestly notify the sponsor and emphasize the project's substantial benefits despite increased costs.
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Executive Summary
This discussion paper entails that morals are accumulations of standards & conducts that shape the
choices that individuals make. Repeatedly practicing ethics will contribute to standard of fairness,
rational decision making. This paper also explains that how a conflict can be solved differently
with different variables & approach to ethics. The basic approaches to ethics which will be
discussed in the paper are Utilitarian Approach, Deontological Approach & Virtue Ethics.
No approach to ethics is wrong here because it is dependent upon the justification provide for each
one & also depends upon the perception of individual.
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Table of Contents
Executive Summary............................................................................................................................1
Introduction to Ethics.........................................................................................................................3
Utilitarianism Approach...................................................................................................................5
Deontological Approach..................................................................................................................5
Objections on Deontological Approach:............................................................................................6
Virtue Based Ethics .........................................................................................................................6
Objections OnVirtue Ethics.............................................................................................................6
Purpose of the Discussion Paper.........................................................................................................7
Analysis of the Problem Statement..................................................................................................7
UtilitarianApproach........................................................................................................................7
Conclusion: What can be done about it?.............................................................................................9
References.......................................................................................................................................10
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Introduction to Ethics
Ethics explains how human beings act in a specific situation & how they differentiate between
right & wrong based on moral grounds that defines the notions of justice and fairness amongst the
executed conduct rooted in the four basic fundamentals (Kehoe, 1993), illustrated by figure 1.
Ethics is derived from a Greek word Ethos which means Habit, Custom & Character. Ethics is a
debatable concept which varies from religion to religion and culture to culture based on one’s
values, traditions and customs conforming to an acceptable social standard (Bursk, 1964). Ethics
is characterized as something which is enforceable by law or by socio-cultural traditions, that
should also be the right possible way defining the constructs of justice and equality. Ethics has
been a widely debated subject since long but its only given the events of recent times that has
furthered the importance of ethical conduct in business operations to ensure maximum
accountability and transparency on part of individuals as well as multinational conglomerates
(Casement, 2008). Researches on subject matter have identified the following key ethical issues in
ETHICS
What is fair
& right?
Who
determines
fair & right?
Personal &
Situational
factors
Who and
how will be
judged?
Figure 1. Fundamentals of Ethics (Self Developed by Author sourced from (Kehoe, 1993))
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the corporate world of today (Institute of Chartered Accountants Australia, 2013), outlined in table
1, which is more or less experienced by any and all organizations.
Table 1: Ethical Issues for Businesses Today
Internal Issues External Issues Social Issues
Insider Trading Undue Political Influence Environmental Issues
Concerns about health and Safety Improper Contracts Substance or Product
Abuse
Anti-Competitive Practices Improper use of
competitor’s information
Stealing
Sexual Harassment
Violation of Contracts
Businesses are being set up with the aim of making profits only, but such notion has become an
abstract surrounding past with modern day governance indicating that business have much more
to capture then just making profits (Smith, 1997; McLaughlin, 2005).
Ethics is set of moral standards which shapes individual’s behavior & attitude toward problem
solving. Ethics is not about being self-centered rather it focuses on benefit of the all which shaped
the modern day triple bottom line approach that relinquished profitability matters at the heart of
Triple Bottom Line
People
PlanetProfit
Figure 2 Triple Bottom Line (Self Developed by Author)
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business as sole operator with concepts of sustainability and people as well (Norman &
MacDonald, 2004), as illustrated by figure 2. Predominantly, ethical issues revolve around three
basic approaches to problem solving with each one having its pro and cons as explained further in
the paper.
Utilitarianism Approach
This concept emphasizes on the consequences that arise from the action that we take in the present
neglecting the way of action being performed rather be on the virtue of lies, torture & manipulation
(Renouard, 2011; Gustafson, 2013). Utilitarianism focuses on the greater good in the long term by
ignoring the bad action taken in present as it leads to the benefits of many in future.
Objections on Utilitarian Approach
The problem with Utilitarian Approach is that the wrong action executed in present for the greater
good varies from subject to subject as the unit of measurement is not same in utilitarian approach
to be compared (Cooper, 2012). For example the human integrity & monetary benefits cannot be
compared on the same moral and ethical grounds that would consort with fairness and being just
as they would differ in time as to their magnitude and cost incurred in present.
A wrong action taken in the present might lead to greater benefit in short run but in long run, such
wrong actions can render the world vulnerable to ethical and moral chaos.
Deontological Approach
This concept emphasizes on the way an action is being performed and neglecting the consequences
arising from the action, regardless of the fact whether the consequences are good or bad thus
relying more on the action being performed and the action being right (Forsyth, 1980; Nantel &
Weeks, 1996). Deontological approach argues that being right takes priority over being good.
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Deontological ethics focuses on doing the right thing regardless of the good & bad consequences
(Even if it produces less good & more harm) but no wrong action should be taken.
Objections on Deontological Approach:
The problem with this concept is that it states that some actions should never be done no matter
what justification is being given or how much good it can produce as it does not focuses on the
results but action & sometimes it makes the world vulnerable to anomalies that are hard to contain
(Chakrabarty & Erin, 2015).
Virtue Based Ethics
Virtue Ethics emphasizes on how a virtues person would conduct an action in a given scenario.
Here the action taken by a person depends upon his character, cultural values, norms, environment
that he lives in & brought up of the person (Melé, 2009; Doviak, 2011). Virtue Ethics also provides
a guidelines regarding characteristics & traits of a good person.
Objections On Virtue Ethics
As the personal traits of people vary so there definition of good & bad also differs from each
other which can create gap because every person will define the good & bad according to the
way they thinks of being a virtues person.
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Purpose of the DiscussionPaper
A person has been appointed to head an IT project for a newly placed information system. Upon
initial calculations, the project manager realizes that he has misquoted the amount required for the
project as the actual cost can surpass the amount quoted by more than four times. The project
manager experiences a dilemma of whether or not to report to the project’s sponsor as he believes
that doing so can jeopardize the project as well as the jobs of several employees associated with
it. On same note, the project manager believes the project to be fruitful straight away giving returns
that will far exceed its cost thus benefiting all the parties concerned. The project manager therefore
decides to withhold the crucial financial information and moves on with the project thinking that
once the projects is underway, the sponsor will be reluctant to stop it.
In this discussion paper we are going to analyze the ethical implications of this problem statement.
Analysis of the Problem Statement
The project manager has under estimated the cost due to his poor financial planning so if he inform
the sponsor, the project might not be approved resulting in loss of employment for associated
employees, including the project manager and all stake holders might also incur major loss on
probable hefty profits.
Utilitarian Approach
The Project Manager wants to take risk of delaying the notification of new cost by under estimating
the cost of the project & will notify the sponsor once the project is underway so that the sponsor
is reluctant to stop the project thus ensuring that all employees and stakeholders get their due return
on the made investment. The project manager is doing wrong in present by keeping the actual cost
to himself because project manager thinks that the project is providing greater benefit for all in
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future which over weighs his bad action he’s taking in present to protect the jobs of it professionals
hired for the project & other benefits.
Deontological Approach
This approach says that the project manager should not take any wrong action no matter how good
consequences it is giving in future. This approach gives priority to right over good. If the project
manager keeps the truth to himself & discloses it to the sponsor later on when the project is under
way, then the project manager might lose his integrity. The project manager might not stop the
project but for future he will not rely on the project manager.
But if the sponsor stops the project, then the project manager will not only lose integrity and his
appointment but the appointments of the IT professionals being hired as well, a loss, which will
be hard to recover.
Virtue Based Ethics
In virtue based ethics it totally depends upon the project manager . If he keep the truth to himself
he might or if he wants to inform the project’s sponsor about the true costs he can. The underlying
notion in this regard is that project manager decides to tell the sponsor about true costs, the sponsor
might still stop the project in the middle under the impression that it’s better to lose less now than
to lose more in future. Alternatively, it can also happen that incase if project manager tells the true
cost, the sponsor might still proceed with project if the projects true long term benefit are being
realized.
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Conclusion: What can be done about it?
It is not advisable on project manager’s part to take risk of delaying notification by under
estimating the cost because by doing so he is putting his integrity on stake even for the greater
good in future for all but in long term no other sponsors will trust him regarding the costs & also
other issues.
It will be better if the project manager notify the sponsor regarding the actual cost in such a
convincing way by highlight the substantial benefits the project is providing to all regardless of
the increased cost . In such a way he will not lose his integrity & will retain the honesty & the
sponsor also will be reluctant to stop the project. If the project manager does this, he will be
successful in long run as well as in short run as well.
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References
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Renouard,C.,2011. Corporate Social Responsibility,Utilitarianism, andthe CapabilitiesApproach.
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