Potential Problem Identification
Overview
Purpose
Not every business decision is an ethical one, but many have hidden or complex ethical implications.
Determine whether the business decision raises ethical concerns that require deeper analysis.
Key Concepts
This step invites you to examine whether the proposed action could cause harm, involve unfairness, breach trust, or compromise core values. By identifying the ethical nature of a problem early, you can avoid overlooking issues that might create reputational or legal risks or simply violate your sense of what is right.
Ethical problems often arise when business priorities conflict with values like honesty, loyalty, fairness, or respect. The earlier you identify these conflicts, the more options you have for responsible action.
In Practice
Example Scenario
As NexaTech evaluates closing its rural customer service center, you begin to hear concerns from staff and community members. Employees are worried about job security, while local leaders highlight the lack of comparable employment in the region. Customers express frustration over losing personalized service. Though the proposal may appear operational, it triggers multiple ethical questions: Are employees being treated fairly? Is NexaTech fulfilling its social responsibility to the community? Is transparency being maintained in communication with stakeholders?
Tips and Tools
- Use the “Front Page Test”: Would I be comfortable if this decision were reported in the news?
- Look for warning signs: stakeholder pushback, reputational risk, or discomfort from team members.
- Identify conflicts between business goals and ethical values.
- Ask: Could someone be harmed if this decision moves forward as planned?
Next Step
Now that you’ve identified the ethical dimensions of this decision, it’s time to examine the broader context that shapes how those issues are perceived and prioritized.
When you’re ready, continue to the next part of the process.
Proceed to the next stage: STAGE 2. UNDERSTAND THE SITUATION →
