Ethical Considerations in Organizational Conflict

Abstract

Ethical considerations are critical to decision-making in any organization. Decisions that impact internal and external stakeholders carry implications that account for employee conduct, personal values, institutional policies, and obligations to customers. Conflicts within an organization present a particularly unique set of dynamics and tensions that require ethical assessment to ensure a fair, equitable, and ethically acceptable work environment. Recognizing these ethical challenges, and ultimately addressing and resolving them, is incumbent upon all stakeholders to ensure the success of the organization and its stated mission to employees, clients, and the community it serves. This chapter explores commonly encountered forms of organizational conflicts with respect to ethical concerns, and the considerations for navigating such conditions through theoretical foundations and a practical lens. The discussion is then followed by a framework for advancing ethical conduct through institutional codes and policies. We conclude with a case study that examines the ethical challenge of fair resource allocation and just distribution of goods.

1. Introduction

How does one successfully approach organizational challenges in a fair and just manner? This question remains a moral and political concern of every manager who has had to ponder, “what is the right thing to do?” The question takes an even more complex turn when multiple stakeholders are involved in the decision. Consider a simple job promotion. Is the promotion of one employee fair to other employees who may be equally deserving of the same recognition? How does this decision affect the manager’s obligation to the organization and its fiduciary responsibility to cost-saving-minded investors? To what extent is the manager unduly influenced by an existing relationship with the rewarded employee? These questions only the scratch the very surface of ethically appropriate decisions and beckon any organization to examine relationships among stakeholders, corporate values, and personal morals that make ethical decision-making complex and worthy of careful deliberation.

In the current climate of constant organizational change, ethical decisions are fundamental to the challenge that each of us face daily both in our personal and professional lives. Change in organizations is inevitable but also embodies complexities of navigating ethical and moral boundaries. Ethical conflicts in the workplace have profound effects on morals, code of conduct, and norms among stakeholders, which can ultimately undermine an organizational mission and its articulated values.

There is no one-size-fits-all approach to arriving at the ideal ethical resolution to every problem, and this contributes to the daunting task of exacting decisions that at best are fair and minimize harm to others. Knowing how to navigate situations as they arise within the organization is vital to the health and wellbeing of the company; but it is equally important to know and understand how the change and ethical practices will impact the stakeholders involved. In a professional setting it is our collective responsibility to understand what is needed to invoke positive change within an organization, and in turn making an impact for the greater good.

This chapter explores ethical considerations within organizations and defines the ethical challenges and their manifestation in the general work environment. We present various accepted ethical models and paradigms for addressing such challenges and propose practical approaches for addressing these barriers. We further describe theories and moral concepts to help effectively navigate change processes and ethical dilemmas and conclude by presenting and unpacking a real-world case study within industry to challenge the reader with how ethical challenges manifest and are addressed through a systematic process.

2. Manifestations of ethical conflict

Organizational change often introduces uncertainties and ambiguities, which can breed conflicts. When employees face uncertainty about their future, roles, or the impact of changes on their job security, conflicts can arise from fear, resistance, or frustration. Power struggles may surface as individuals vie for influence or attempt to safeguard their positions amidst the shifting organizational landscape. Furthermore, conflicts can stem from conflicting priorities that emerge during organizational change [1]. Different stakeholders may have varying interests and visions for the organization, leading to disagreements and conflicts over resource allocation, decision-making authority, or the overall direction the organization should take.

Organizational change can be met with resistance to change, particularly when stakeholders have a narrow interest, misunderstanding and lack of trust, apply different evaluations, and have a low tolerance for change itself. It is critical for any decision-maker to recognize that such variances may manifest as conflict but also reflect on the possibility that competing interests can be equally valid and compelling with respect to the employee. Such interests can be guided by indirect profit, gain, collective benefits, or the benefits for the individual—all of which may be valid and real. Likewise, the inevitability of conflict can be a product of differing attitudes, beliefs, levels of knowledge, and life experiences. Not surprisingly, opposing values often lead to self-centeredness and barriers to understanding other perspectives, and in more severe forms, protectionism and self-preservation [2].

2.1 Organizational conflict

Conflict is a natural consequence of communication, and organizational conflict is an inherent aspect of any complex system. It arises due to the diverse nature of individuals, their varied perspectives, interests, goals, and complex interactions between different parts of the organization. Conflicts are not inherently harmful or destructive; they can serve as catalysts for growth, innovation, and positive change when managed effectively by bringing different viewpoints to the table, challenging existing assumptions, and fostering creative problem-solving. Conflicts in organizations often stem from differences in values, priorities, or resources. As individuals work together towards common goals, their perspectives may clash, resulting in tensions or disagreements. These conflicts can occur at various organizational levels, including individuals, teams, departments, or even between organizational units [3].

2.1.1 Types of organizational conflicts

The types of conflicts are varied and often circumstantial and described into two principal categories: personal and systemic. Personal conflicts include interpersonal conflicts, conflicts of interest, and ethical conflicts. Systemic conflicts include role, structural, cultural, and conflict between strategy and execution [4]. The following describe various ways in which such conflict modalities can present:

• Interpersonal conflicts occur between individuals or groups within the organization and are driven by differences in personalities, communication styles, or personal values. They may arise due to misunderstandings, conflicting goals, power struggles, or competition for resources or recognition.

• Conflicts of interest occur when individuals or groups have competing personal or professional interests that may compromise their ability to act objectively and, in the organization’s, best interest. Examples include situations where personal relationships, financial gain, or external affiliations influence decision-making. Ethical conflicts arise when disagreements or dilemmas are related to ethical principles, values, or behaviors within the organization. These conflicts may occur when there are competing ethical standards, differing interpretations of ethical guidelines, or conflicts between personal and organizational ethics.

• Organizational conflict and ethical decision-making are closely linked because conflicts often involve ethical dilemmas requiring thoughtful consideration and analysis.

• Role conflicts emerge when individuals or groups have conflicting expectations or demands placed upon them. These conflicts can arise from unclear job responsibilities, overlapping roles, conflicting priorities, or organizational or departmental goals differences.

• Structural conflicts stem from organizational structures, processes, or systems. These conflicts often arise when there are conflicting goals or interests between different departments, units, or hierarchical levels within the organization. Inadequate communication channels, lack of coordination, or resource allocation issues can contribute to structural conflicts.

• Cultural conflicts emerge when there are differences in values, norms, beliefs, or expectations among individuals or groups within the organization. These conflicts may arise due to diversity, such as different ethnic or cultural backgrounds, or from clashes between subcultures within the organization.

• Conflicts between strategy and execution occur when there is a disconnect between the strategic goals or objectives of the organization and the ability to implement or execute those strategies effectively. Misalignment between strategic decisions and operational realities can lead to conflicts and inefficiencies.

2.1.2 Reasons for organizational conflict

The reasons for these conflicts can vary widely depending on the specific circumstances and dynamics of the organization. Poor communication, inadequate leadership, limited resources, conflicting goals, organizational change, and lack of clarity or alignment in roles and responsibilities can contribute to organizational conflicts. Yet primary reasons for organizational conflict include communication, complexity, and culture. These arise from multiple contributing factors:

• Communication. Organizational conflict often arises due to a communication breakdown attributed to several factors. Poor communication channels, characterized by ineffective or insufficient means of information exchange, play a significant role in fostering conflicts within an organization. When the channels fail to facilitate clear and timely communication, this creates an environment where misunderstandings and misinterpretations of messages can occur.

• Misinterpretation of messages further compounds the problem. Individuals may perceive and understand information differently based on their filters, biases, and interpretations. Nonverbal cues, such as body language or tone of voice, can be easily misread or misinterpreted, adding complexity to the communication process. Cultural and language differences can also contribute to misinterpretations, as people may ascribe different meanings to words or expressions.

• Lack of clarity in communication. Unclear messages, vague instructions, or undefined roles and responsibilities can create employee confusion and uncertainty. When individuals are unsure about what is expected of them or have conflicting perceptions of their roles, this increases the likelihood of misunderstandings and disagreements that can in turn escalate into conflict.

• Power dynamics. Power imbalances stemming from hierarchical structures, formal authority, or informal influence can create tensions and fuel conflicts. Individuals who feel marginalized, unheard, or unfairly treated may resist or challenge authority, leading to strained relationships and communication breakdowns. Power struggles and competition for dominance can impede effective communication, as individuals may hesitate to express their opinions or concerns openly.

• Competition for limited resources. When resources such as funding, staffing, or time are scarce, individuals or teams may vie for their fair share, leading to heightened tensions and conflicts. Communication breakdowns related to resource allocation decisions or perceived inequities in distribution can intensify these conflicts.

• Varying levels of authority. Conflicts can arise when decision-making processes need more transparency and clarity in roles and responsibilities. Individuals may feel excluded from decision-making processes, perceive favoritism, or resist top-down directives, resulting in communication gaps and disagreements.

Diverse groups often consist of individuals with contrasting perspectives, beliefs, and ways of approaching tasks. Varying work styles, such as those who prefer structure and adherence to processes versus those who thrive in a more flexible and innovative environment, can lead to conflicts over preferred methods and approaches. Differences in personalities, such as introverts versus extroverts or risk-averse versus risk-takers, can further exacerbate conflicts as contrasting working styles and communication preferences come into play. Moreover, conflicts can emerge during times of organizational change. Restructuring efforts, mergers, or shifts in strategic direction inherently disrupt established norms, power dynamics, and relationships within the organization. Changes in reporting lines, team composition, or job roles can trigger conflicts as individuals adjust to new responsibilities or perceive a threat to their status or authority. Conflicts may also arise when individuals resist or struggle to adapt to the changes, leading to clashes between those embracing and resisting the change.

Addressing these contributing factors requires organizations to prioritize effective communication. Approaches include improving communication channels, promoting clarity in messaging, encouraging active listening, and addressing power imbalances. Organizations can also foster a culture of collaboration, teamwork, and shared goals to minimize conflicts stemming from competition for resources or discrepancies in authority. Organizations can mitigate conflicts and create a more harmonious work environment by recognizing the impact of communication breakdown and proactively working to enhance communication processes. Encouraging open dialog, fostering an inclusive culture that respects diverse perspectives, providing support and resources during change, and promoting collaboration can help mitigate conflicts. Leaders play a crucial role in managing conflicts by facilitating discussions, mediating disputes, and promoting a shared vision that unifies individuals and aligns their efforts towards organizational goals.

3. Navigating ethical conflict

The ethical approach to addressing organizational conflict may be as varied as the complexity of the situation itself. The multiple perspectives allow professionals to leverage a toolkit from which to apply a systematic approach to ethical decision-making. Any change in an organization brings about concerns of inequities, fairness, and conflict of interest. Coupled with perceptions of the influence of power dynamics and personal agenda, it is not surprising that organizations and their managers struggle to operate under an ethical code of conduct. Such decisions may be driven by factors across multiple levels. These include developmental, to improve on a singular approach, process, or project; transitional, to allow organizations to shift or evolve towards new processes or goals; and transformational, a complete rethinking of an organization’s vision, culture, behavior, dynamic, business model, management approach, or personnel.

3.1 Multiple theories, multiple permutations

Designing an ethical organization is hard work but a worthwhile and often necessary endeavor. Ethics are not just a belief problem but a design problem. Given the range of stakeholder values, thoughts with judgment, incentives, and cultural norms, organizations must act on principles that satisfy core tenets that align with stakeholder values. All moral theories from which ethical applications are derived can be positioned between two opposing yet non-mutually exclusive tenets: the obligation of one’s duty and the act of promoting happiness as a consequence. These moral perspectives, philosophically termed Deontology and Consequentialism, respectively, each carry a unique set of characteristics for how we act as individuals and with one another. Generally described, the Deontological reasoning asserts that a theory of duty holding that some features of actions other than or in addition to consequences make actions right or wrong, whereas a utilitarian model advocates for actions are right or wrong according to the balance of their good and bad consequences.

3.1.1 Ethics and values-based decision making

Within a professional atmosphere, broad-stroke fundamental theories are rarely sufficient to guide ethical considerations in complex decisions that affect employees with varying values, cultural leanings, religious and ideological affiliations, and personal morals. In this context, rather, one needs to extend beyond normative ethics and consider an additional layer of ethical attributes that help guide the complex dynamics of organizational hierarchy and interpersonal dynamics. These include stewardship, loyalty, and fidelity. Finally, we examine the concept and application of principlism, an ethical approach to decision-making that embodies a set of principles and standards that can be universally applied to moral challenges with the workplace.

Values are not necessarily universal; they reflect the relative morals and personal codes that individuals assign to their conduct in society. They are also embedded in political and societal cultures. Social norms are principles or guidelines that guide action and decisions. These may present tension with normative practices (conventions, customs and ideals). Moral authority and relativism embody emotion and experiential factors that may contribute to one’s normative approach to ethics. Cultural values and international differences may also contribute to a social and cultural environment governed by laws, rules and regulations, formal values and norms, codes of conduct, and policies.

3.1.2 Integrating morals and values

When we discuss morality and values, what does this mean in a practical sense? The terms are “loaded,” meaning they mean different things to different people. Some may see morals as personal beliefs shaped by upbringing and experience, and values are what shape our actions and behaviors. Though morals and values are fundamental concepts in ethics and play a significant role in shaping an individuals’ beliefs, attitudes, and behavior, they are different yet closely related.

Morals are principles or standards of conduct, deeply ingrained from cultural, social, religious, and personal factors, that guide individuals in distinguishing right from wrong. Morals typically encompass ethical principles and judgments about what is morally good or bad, right or wrong, virtuous or vicious. They serve as a foundation for ethical decision-making and provide a framework for individuals to navigate their actions and interactions with others.

From this foundational perspective comes moral theory, a vast range of philosophical frameworks that aim to understand ethics and guide human behavior systematically. Moral theory encompasses two fundamental components: the theory of right conduct (provide guidelines for determining what actions are morally right or wrong by exploring the concepts of moral obligations and duties) and the theory of value (most traditionally accepted that the value of any object or service is transient and correlated by the work input and cost of resources). By examining these moral foundations, principles, and practical implications, we can gain a deeper understanding of the complexities involved in ethical decision-making.

Whereas morals focus more on distinguishing right from wrong, values are broader and encompass a more comprehensive range of beliefs and ideals that individuals consider significant in shaping their lives and decision-making. Morals are often derived from, and aligned with, one’s values, but they specifically address ethical conduct and decision-making. Values are individuals’ fundamental beliefs or ideals, which influence their attitudes, choices, and behaviors. They assist in prioritizing and making choices that align with their core beliefs and principles. They reflect what individuals consider important, desirable, or worthwhile in life. Values encompass various domains such as personal, social, professional, or spiritual aspects and often include principles like honesty, integrity, respect, compassion, fairness, loyalty, freedom, equality, and justice.

Illustration: Consider the principle of honesty. Honesty is a moral virtue that involves telling the truth, being sincere, and avoiding deceit. It is morally right to be honest and morally wrong to lie or deceive others, and this frame guides individuals in situations where truthfulness is expected or necessary. However, the application is based on the context of the situation. Is it ever morally justified not to be entirely truthful or transparent? Consider the value of compassion. Compassion is a virtue that many individuals hold dear. It involves showing empathy, kindness, and concern for the well-being of others. People who value compassion strive to alleviate suffering, help those in need, and promote understanding and support in their relationships and communities. Compassion influences individuals’ choices, such as volunteering for charitable causes or assisting those facing hardships. In this example, honesty represents a moral principle that guides ethical conduct, distinguishing between truthful and deceptive behavior. Conversely, compassion represents a broader value reflecting a deep-seated belief in empathy and kindness towards others that encompasses honesty.; Now consider an example where a moral principle builds on a core value. We would explore respecting others, which is a key component of corporate diversity, equity, and inclusion programming. The moral foundation for this topic is non-discrimination, which dictates that individuals should not be treated unfairly or prejudiced based on characteristics such as race, gender, religion, sexual orientation, or any other inherent or acquired trait. Non-discrimination upholds the belief that everyone deserves equal treatment and opportunities, irrespective of their differences. This moral foundation can lead us to respect others, a core value that emphasizes treating individuals with dignity, acknowledging their worth, and recognizing their rights and autonomy. It also involves showing consideration, listening attentively, valuing diverse perspectives, and accepting that not everyone starts at the same starting line. In this example, the moral principle of non-discrimination provides the foundation for the value of respecting others and providing supportive conditions to address inequities faced by marginalized or vulnerable populations. Conversely, by valuing and respecting one’s inherent worth and dignity, the moral principle of non-discrimination extends that respect further by advocating for just treatment and opposing unfair biases or prejudices.

3.1.3 Moral injury and conflict

Morals and values vary among individuals, cultures, and societies. They are also subject to interpretation and context; what is considered morally acceptable or valuable in one situation may differ in another. Additionally, individuals may prioritize and interpret morals and values differently based on their experiences, upbringing, and cultural background.

What happens when we act contrary to our morals and values? Moral conflicts occur when individuals or groups make decisions or take actions that involve conflicting ethical principles or values. These conflicts arise when two or more moral principles or values conflict, making the determination of the right course of action challenging. As with morals and values, moral conflicts are contextual, such as personal dilemmas, professional settings, societal issues, or political determinates. Moral conflicts often challenge individuals to weigh the importance of competing moral principles, evaluate the potential consequences of their choices, and make decisions that align with their values or ethical frameworks. Resolving moral conflicts requires thoughtful consideration, ethical reasoning, and a willingness to engage in dialog to find a balance or compromise that minimizes harm and upholds ethical standards. Several examples briefly highlight such moral conflicts. Consider how you may choose to act in each case:

1. Honesty vs. loyalty: Imagine a situation where a person discovers that a close friend has committed a serious offense. They face a moral conflict between being honest about their friend’s actions, which may result in severe consequences, or remaining loyal and protecting their friend from potential harm.

2. Autonomy vs. paternalism: In healthcare there may be a conflict between respecting a patient’s autonomy (their right to make decisions about their healthcare) and acting in their best interest. For example, a doctor might recommend a specific treatment they believe is best for the patient’s health, but the patient refuses it based on their beliefs or values.

3. Utilitarianism vs. individual rights: The ethical theory of utilitarianism promotes maximizing overall happiness or well-being for the greatest number of people. However, conflicts can arise when the pursuing of the greater good clashes with individual rights or freedoms. For instance, a government might implement a policy restricting certain civil liberties for public safety, leading to a conflict between promoting the common good and respecting individual rights.

4. Environmental preservation vs. economic development: This conflict arises when decisions regarding using natural resources or land clash with the moral value of preserving the environment for future generations or the economic interests or immediate benefits of exploiting those resources for development or profit.

3.1.4 Implicit bias and prejudice

Implicit bias and moral injury are two distinct concepts that relate to different aspects of human behavior and experience. Implicit bias refers to the unconscious attitudes and stereotypes that individuals hold towards certain groups of people, which can influence their judgments and actions [5]. These biases are often formed through socialization and cultural factors and may contradict an individual’s explicit beliefs or values. Implicit biases can manifest in various domains, such as race, gender, age, or socioeconomic status, affect decision-making processes, and contribute to systemic inequalities and discrimination. While implicit bias and moral injury are separate concepts, some connections may exist between them in specific contexts. For example, individuals who hold implicit biases against certain groups may experience moral injury if their biased attitudes lead them to act in ways that contradict their explicit moral values. Being the target of implicit bias can contribute to moral injury if individuals feel devalued or morally violated by the discriminatory treatment they receive.

It is essential to address both implicit bias and moral injury to promote fairness, justice, and well-being. Strategies such as awareness training, education, and creating inclusive environments can help mitigate the effects of implicit bias. Addressing moral injury requires support and interventions that foster healing, moral resilience, and restoring a sense of meaning and purpose in individuals who have experienced moral harm and/or conflict.

3.1.5 Risk-taking behaviors

Risk-taking behaviors are a typical response to coping with or mitigating moral injury’s effects. These behaviors can take various forms and span a wide range of actions. People may engage in substance abuse, self-destructive behaviors, impulsive decision-making, aggression, thrill-seeking activities, or even isolate themselves to deal with the distressing emotions associated with moral injury. These behaviors serve as maladaptive coping mechanisms that temporarily escape the overwhelming feelings. Risk-taking or impulsive actions allow individuals to regain a sense of control or reclaim lost identity and meaning.

When staff members exhibit risk-taking behaviors within an organizational context, it can have significant impact. The consequences may vary depending on the nature and severity of the behaviors and the specific industry and circumstances involved. It may have legal and compliance concerns, such as involving illegal activities or violations of company policies that can expose the organization to legal and compliance risks. This may trigger legal recourse, regulatory penalties, damage to the company’s reputation, and potential loss of business opportunities. Decreased productivity and performance are noted when staff members engage in risk-taking behaviors; their focus may shift away from work responsibilities, resulting in decreased productivity, missed deadlines, poor decision-making, and overall reduced performance. It can also affect team dynamics and collaboration. Employee morale and retention may further suffer when staff members engage in behaviors that can negatively impact overall employee morale and job satisfaction. Co-workers may feel demoralized, lose trust in their colleagues, or perceive a lack of fairness within the organization, contributing to increased turnover and difficulties attracting and retaining talented employees.

3.1.6 Culture impact and psychological safety

Organizations and communities are vital to fostering ethical cultures promoting accountability and integrity. By implementing ethical codes that outline expected conduct, providing moral education and training to employees, and establishing mechanisms for ethical decision-making and oversight, organizations can create an environment that minimizes moral disengagement and encourages individuals to uphold their moral values.

Building a culture of psychological safety is essential in this context. When individuals feel safe to voice their concerns, ask questions, and express their moral perspectives without fear of reprisal or judgment, it facilitates open dialog and constructive discussions about ethical dilemmas. Psychological safety nurtures trust and respect, allowing individuals to openly reflect on their experiences and engage in collaborative problem-solving to address moral challenges. Furthermore, organizations can support employees in their moral growth by offering resources for moral development, such as workshops, mentoring programs, or opportunities for shared moral reflection. By actively investing in the ethical development of their workforce, organizations demonstrate a commitment to fostering an ethical culture that prioritizes moral decision-making and integrity.

The cultural impact of promoting ethical decision-making extends beyond the organization itself. Communities can also nurture an ethical environment by encouraging dialog and reflection on moral issues and creating spaces for shared understanding and growth. Collaborative efforts involving organizations, educational institutions, and community leaders can promote ethical behavior and moral development on a broader scale. By embracing the importance of psychological safety, actively supporting individuals in their moral growth, and fostering ethical cultures at both the organizational and community levels, society can create an environment that encourages principled decision-making, accountability, and integrity in the face of moral challenges.

The impact of moral injury on moral decision-making is not static. While moral injury can initially disrupt decision-making processes, individuals can heal and grow from moral injuries over time. Seeking support, engaging in moral reflection, and actively working towards personal growth and repair can restore individuals’ confidence in their moral judgment and enhance their ability to make principled decisions. At the systemic level, organizations and communities can foster ethical cultures that promote accountability and integrity. Implementing ethical codes, providing moral education and training, and establishing ethical decision-making and oversight mechanisms can help prevent moral disengagement and encourage individuals to uphold their moral values.

4. Advancing adherence to ethical codes

An organization has an ethical duty to its employees and stakeholders to develop and maintain a clear vision and communication plan regarding adherence to ethical codes. These two areas are where intentions and execution can misalign. As we discussed in previous sections, organizations are complex and depend on the individual contributions of their employees. However, a company’s biggest asset is its most significant liability, the individual employee. It is imperative that an organization clearly define its vision and ethical expectations and then ensure that its employees align their actions accordingly, which is easier said than done [6, 7].

• Vision. A well-defined vision sets the tone for ethical behavior by articulating the organization’s goals, purpose, and values. It also serves as a powerful tool for setting the tone of ethical behavior within an organization by providing a framework for decision-making that aligns with its ethical standards. A clear vision ensures that all stakeholders, including employees, understand ethical expectations and work towards achieving common goals. The vision statement encapsulates the long-term aspirations and direction of the organization. It communicates the desired impact the organization aims to achieve and the values that underpin its actions. When explicitly stated in the vision, these values become a guiding light for ethical behavior. Employees and stakeholders can refer to the vision to understand the organization’s overarching objectives and the ethical principles governing their actions. It provides a common language and a reference point for discussions and decision-making about ethical dilemmas. When employees have a clear vision to guide them, they can make choices consistent with the organization’s values, even in complex situations where ethical dilemmas may arise.

• Communication plan. Effective communication is not just a beneficial aspect of organizational functioning but a cornerstone supporting transparency, trust, and accountability within the organization. Through effective communication, ethical concerns and guidelines can be clearly and consistently communicated to all employees and stakeholders. Disseminating ethical codes and standards is crucial in fostering an organizational culture. A communication plan provides a roadmap for sharing these codes and standards with employees at various levels and departments. By establishing a communication plan that outlines channels, protocols, and expectations, the organization can ensure that ethical concerns and guidelines are effectively communicated and understood by everyone involved. It would include disseminating the ethical codes and standards throughout the organization to ensure employees are aware of its values, principles, and guidelines that govern their behavior. This clarity reduces the likelihood of misunderstandings, misinterpretations, or ethical lapses due to ignorance. By establishing open lines of communication, organizations can foster an environment where employees feel comfortable expressing concerns and seeking guidance regarding ethical dilemmas. Transparent communication practices ensure that information about ethical issues, decisions, and processes is shared openly with employees and stakeholders. When employees access relevant information, they can make more informed ethical choices and understand the broader context of their actions.

• Accountability. A communication plan sets clear expectations and protocols for reporting ethical violations and breaches. It establishes mechanisms to hold individuals accountable for their actions and ensures that the consequences of unethical behavior are communicated effectively. By doing so, organizations demonstrate their commitment to upholding ethical standards and show that unethical behavior is unacceptable. Transparency and accountability are also enhanced through effective communication, as it ensures that relevant information is shared, and individuals are held responsible for their actions. Ultimately, a culture of ethical behavior is nurtured when communication practices prioritize transparency, trust, and accountability.

• Mitigating conflicts of interest. An organization has a fundamental obligation to address conflicts of interest to uphold its integrity and maintain the trust of its stakeholders. Conflicts of interest occur when an individual’s interests or obligations interfere with their ability to act in the organization’s best interests. By addressing conflicts of interest proactively and transparently, organizations can mitigate the risks associated with such conflicts and ensure fair and ethical decision-making processes.

Illustration: GreenTech Solutions is a fictional company that specializes in renewable energy solutions. GreenTech Solutions understands the importance of ethical conduct in the industry and strives to ensure adherence to ethical codes within the organization. They have a clear vision that outlines their ethical practices and expectations: “To become a leader in sustainable energy solutions while maintaining the highest ethical standards for our clients, employees, and the environment.” Their vision statement emphasizes their commitment to environmental stewardship, integrity, and social responsibility. This vision serves as a guiding principle for decision-making processes and ensures that all employees understand the organization’s expectations regarding ethical conduct.; From this, GreenTech Solutions develops a communication plan emphasizing transparency and accountability. They regularly conduct training sessions and workshops to educate employees about their ethical standards and the industry’s best practices. They provide channels for employees to voice concerns, ask questions, and report any ethical violations they may witness. This open communication fosters a culture of trust and encourages employees to act ethically and responsibly.; If a GreenTech Solutions employee now encounters a potential conflict of interest while working on a project, a clear vision and communication plan help the employee’s actions; he or she knows that their decisions should prioritize the company’s and its stakeholders’ best interests rather than personal gain. They also know they can reach out to the designated channels, such as an ethics hotline or their immediate supervisor, to seek guidance and report the situation.; By having a clear communication plan and vision GreenTech Solutions maintains adherence to ethical codes within the organization and upholds its reputation in the industry. Their commitment to open communication and ethical behavior enhances their credibility among customers, investors, and other stakeholders who value sustainability and responsible business practices.

• Policies and guidelines. Establishing clear policies and guidelines regarding conflicts of interest is critical for an organization to address and manage such conflicts effectively. These policies serve as a roadmap that outlines the organization’s expectations and procedures for identifying, disclosing, and resolving conflicts of interest. Clearly communicating these policies to employees establishes a foundation for addressing conflicts systematically and fairly. The effective communication of these policies and guidelines is crucial. To achieve this, an organization should consider training programs, regular communication channels, and integrating the policies into the organization’s code of conduct or employee handbook. By providing specific examples and scenarios, employees better understand what circumstances might give rise to conflicts of interest.

• Transparency and disclosure. Organizations must promote and require transparency and disclosure. Employees should be encouraged and required to disclose any actual or potential conflicts of interest, including financial interests, personal relationships, or other external affiliations that could compromise their objectivity or impartiality. Organizations can effectively identify and manage conflicts of interest by creating an environment where disclosure is valued and protected. When conflicts of interest are identified, organizations have a duty to assess and manage them appropriately. For example, employees with a conflict are asked to recuse themselves from this decision-making process.

• Education. Proactive and ongoing education programs about conflicts of interest and their potential consequences are critical. Training programs and workshops can raise awareness about the ethical implications of conflicts and guide how to identify and manage them effectively. Fostering a culture of ethical awareness empowers employees to make informed decisions and act in the organization’s best interests.

• Fairness and equity. These critical concepts pertain to treating individuals justly and ensuring equal opportunities, access, and treatment for all organization members. Organizations prioritizing fairness and equity create an ethical environment that promotes inclusivity, diversity, and respect. Fairness refers to the fair and unbiased treatment of individuals within an organization. It entails making decisions and allocating resources free from favoritism, discrimination, or bias. Fairness ensures that individuals are treated equitably based on objective criteria and relevant qualifications. This principle extends to various aspects of organizational life, such as hiring and promotion processes, compensation and benefits, performance evaluations, and disciplinary actions. Conversely, equity focuses on ensuring that individuals have equal access to opportunities, resources, and benefits. It recognizes that individuals may have diverse needs, circumstances, and backgrounds. Moreover, fairness and equity align with legal and ethical standards. Organizations are responsible for complying with laws and regulations that promote equal employment opportunities and prevent discrimination. Ethically, fairness and equity reflect principles of justice, human rights, and social responsibility. By incorporating fairness and equity into their ethical framework, organizations demonstrate their commitment to upholding these principles and contributing to a just and inclusive society.

• Psychological safety. Fostering an environment of psychological safety is closely intertwined with organizational ethics. Psychological safety exists in an environment where individuals feel safe to express their opinions, ideas, and concerns and can take interpersonal risks without fear of retaliation or punishment. Nurturing psychological safety can significantly contribute to upholding ethical principles and practices because employees feel empowered to raise questions, share their perspectives, and challenge unethical practices without fear of judgment. Conversely, an environment that allows for psychological fear is likely to see an increase in stress, anxiety, and fear levels in the workplace.

Illustration: HealthFirst Hospital recognizes the importance of addressing conflicts of interest to maintain the trust and integrity of its healthcare services. The organization has a clear policy outlining what constitutes a conflict of interest and providing guidelines on managing such situations. The Compliance Officer knows Dr. Smith, a highly regarded specialist at HealthFirst Hospital, has a financial interest in a pharmaceutical company that manufactures a specific medication. The hospital’s policy requires all healthcare professionals to disclose any financial interests that may present a conflict of interest.; Upon learning about Dr. Smith’s financial interest, the Compliance Officer initiates a process to examine the potential conflict, establishing an independent review committee comprising members with no financial ties to the pharmaceutical company to evaluate the situation objectively. The committee carefully examines the conflict, considering factors such as the potential impact on patient care, the available alternatives, and the extent of Dr. Smith’s financial interest. Based on the committee’s assessment, it is determined that there is a potential conflict of interest that could compromise impartial decision-making.; The Compliance Officer discusses the conflict with Dr. Smith and requests that he either recuse himself from any decision-making processes involving the prescription and promotion of the medication or that patients are made aware of the conflict and its extent if he plans to prescribe it. These options ensure that patient care remains the top priority and is not influenced by personal financial considerations.

5. Conclusion

Establishing a culture that promotes ethical decision-making is another crucial aspect of managing conflicts effectively. Organizations must provide employees with the necessary tools, resources, and training to navigate ethical dilemmas. This includes developing and disseminating a comprehensive code of conduct, establishing clear policies and procedures, and fostering a supportive environment encouraging ethical behavior and open discussions about moral challenges and dilemmas. Furthermore, creating environments that prioritize ethical conduct, open dialog, and supportive structures can restore moral decision-making capacities. Organizations and communities can foster a culture that encourages reflection, provides opportunities for moral development, and offers spaces for individuals to discuss and process their moral struggles. Such environments are bound to support individuals in rebuilding their moral decision-making capabilities and mitigate the risk of future moral injury. By actively nurturing a culture that promotes psychological safety, values diverse perspectives, encourages ethical behavior, and provides the necessary support structures, organizations create an environment where conflicts are approached constructively. This culture facilitates open dialog, collaborative problem-solving, and the resolution of conflicts in a manner that upholds the well-being of individuals and the organization as a whole.

While conflict in the workplace cannot be eliminated entirely, organizations can adopt strategies to manage and resolve them effectively. Encouraging open and honest communication, active listening, and respectful dialog can facilitate understanding and empathy among conflicting parties. Conflict resolution techniques such as negotiation, mediation, and compromise can help find mutually acceptable solutions. It is essential for organizations to proactively address these underlying factors and implement effective conflict management strategies to minimize the negative impact of conflicts and foster a healthy and productive work environment.

Morals and values serve as guiding principles that shape individual and organizational ethical perspectives, influence their behavior, and contribute to the formation of integrity that is rooted in the mission, vision, and perception of stakeholders. Practically they provide a framework for individuals and organizations to evaluate actions, make moral judgments, and strive for a meaningful and virtuous impact on one another and society as a whole.

6. Case study: “Who gets the vaccine?”

The following case study presents a real-world illustration of an organizational issue surrounding fair and equitable distribution of services within a public health context. Although identifiers have been removed, the specifics reflect realistic ethical challenges and considerations when resolving complex ethical conflict within an organization.

Conflict of interest

The authors declare no conflict of interest.

Situation and background

A 22-year-old college student named Maria with a compromised immune system is at risk of respiratory infections, for which she has been periodically hospitalized since she was a child. The student is a candidate to receive a vaccine to protect against an emerging virus, which can mitigate her risk of contracting the virus, leading to health complications, hospitalization, and even death.

Nationwide shortages have resulted in the vaccine available in limited quantities, forcing clinics and health care providers to make the difficult decision of allocating the available resources to the populations in greatest need. To complicate matters, the decision is at the discretion of the provider or at the organizational level, determined by a system-wide policy. Maria’s clinic, where is a patient, is affected by this reality.

Key ethical questions

1. How should Maria’s clinic or physician decide who gets the available vaccine in an ethical manner?

2. What considerations should be factored into which populations ought to be prioritized?

3. Is this decision fair and equitable, or does it unfairly advantage some individuals?

4. How should personal values and professional obligations be balanced, and how does cost compared to clinical need play a role?

5. What are the immediate (patient) and extended (society) implications?

Ethical analysis

The decision to fairly allocate limited resources, particularly in a health care environment or organization, is especially challenging. The complexity of the situation is compounded by considering multiple factors: personal values of the clinicians, professional obligations to patients and customers, institutional policies and compliance that are expected to be enforced, the safety and risks of others that may be affected by extension of the decision (i.e., children, family members, co-workers, the public), and clinical or medical necessity. An additional practical layer of factors is of consideration with any organizational enterprise, namely cost and resources. There are several traditional approaches to this challenge:

• The lottery method. This model allows for chance to determine who receives the vaccine, based on a blinded system of selection. This approach offers a seemingly fair method of distribution, but it may inadvertently favor those who need the vaccine the least while simultaneously disadvantaging those who have most to benefit

• First-come, first served. Perhaps the most common and arguably fair method of distribution, this model favors those who take the initiative to seek out the vaccine based on their need and urgency. In an ideal situation, this approach would benefit those who require the vaccine with greatest urgency, yet in reality such efforts are predicted on the ability of a patient to access their provider in a timely manner. Given real-world challenges of time, money, work and family conflicts, and means of transportation, this model can disadvantage those with limited resources.

• Clinical need. Unlike the other two models, this approach seeks to prioritize the decision based on an objective measure. Allowing the health care provider to determine the need based on his or her professional discretion helps to limit the influence of implicit bias and external factors while relying on professional duty to the patient and society.

Outcome

The decision to fairly allocate vaccine supply was determine on a tiered model, weighted by population risk:

• The initial distribution of the vaccine was limited to those who were most susceptible to health risk: healthy children 2 years and older and healthy household members who have infants younger than six months of age

• The next tier was allocated to high-risk groups such as pregnant women, household members and caregivers for children younger than 6 months of age, health care professionals, and high-risk individuals with chronic medical conditions or comorbidities

• Given her risk category, Maria was placed in the “medical need” tier and was able to receive the vaccination before the general patient population of the same clinic. In a fair and equitable manner, this decision requires that Maria meets her ethical contractto appear on time for her vaccination

Questions for discussion

• How would the decision change if an at-risk elderly individual is unable to afford transport to the clinic?

• How might the decision change if a low-risk individual appeared first and offered to pay a premium amount for the vaccine? Does it change your decision knowing that this payment can be used to treat other (or more) patients in the clinic?