Top 10 ethicaldilemmas @work

By Muel Kaptein, Partner at KPMG and Professor in Business Ethics

An ethical dilemma is a difficult choice between two competing principles,

values or norms.

Which of the following 10 ethical dilemmas

is most difficult for you?

1. Unwanted client

The chairman of a political organisation accused of racism asks me to take on a marketing research project. Any assignment is tempting at the moment to help ensure the continuity of my two-partner consulting firm. What should I do?

1. I decline the assignment.

2. I accept the assignment.

3. I pass the assignment on to a competitor on the condition that I get a percentage of the proceeds.

4. I accept the assignment on the condition that my involvement with the political organisation is not disclosed.

2. Job applicant with information

One of the best representatives of a major competitor has applied for a job in our company. I interview him and am impressed with his service record. During the interview he spontaneously offers to copy essential information belonging to the competitor onto a USB for us when we hire him. What should I do?

1. I put the proposal to the general director.

2. I do not hire the applicant.

3. I hire the applicant but point out that he has made an improper proposal. I do not use his information.

4. I hire the applicant and make use of his offer.

3. Location check

As head of the In-house Training department I often organise courses in luxury convention centres. The manager of one of the centres I occasionally use offers me a free weekend together with my family in a new hotel and convention centre. He says that this will give me a good impression of what the centre has to offer. What should I do?

1. I decline the friendly offer. I wish to keep my professional and private lives separate.

2. I accept the friendly offer but insist I pay.

3. I accept the offer straight away.

4. I decline the offer and decide not to make any further use of this centre.

4. Customer-friendly invoice

I am head of the Sales department of a large car dealership. A customer is prepared to purchase a car from me provided I am prepared to book the transaction two weeks earlier. It is now 14 January and from a tax point of view it is lucrative for the customer to book the purchase against last year. The act of antedating itself has no direct financial implications for our company. What should I do?

1. I adjust the accounts to the wishes of the customer.

2. I tell the customer that I am not prepared to pursue his request.

3. I promise the customer that I will discuss his request. That way I can stall this issue and make it harder for him to go to another car dealer.

4. I refer the customer to the general director.

5. Damaged car

By chance I see that my manager damages another car while pulling out of his parking space. Clearly he has not noticed me. After a cursory inspection of the damage he checks for bystanders and then hurriedly drives off. The problem is that my chance of a promotion will be decided on next week. What should I do?

1. I place a note on the damaged car’s windshield informing the owner who caused the damaged.

2. I pretend I haven’t noticed anything.

3. I tell my manager that I have seen him damage the car.

4. I report the incident to the management board.

6. Police escort

During a business trip in a country that I am relatively unfamiliar with my taxi gets stuck in traffic in what appears to be a bad neighbourhood. It is starting to get dark. Thirty minutes later a police officer arrives on a motorcycle. He knocks on the window and proposes that he escorts the taxi past the queue of cars for a sum of money equivalent to 80 dollars. The taxi driver suggests we accept the offer because it is not safe for a foreigner like me to be in this neighbourhood after dark. What should I do?

1. I decline the offer.

2. I accept the offer but pay out of my own pocket.

3. I accept the offer and claim back the expense with my employer without a receipt.

4. I accept the offer and ask the taxi driver to write out an additional taxi receipt in the amount of 80 dollars.

7. Troubled waters

I am responsible for one of our company’s project sites. We do not have a permit to drain wastewater into the nearby river. A sample I took for lab analysis of the water quality shows that concentrations slightly exceed the statutory environmental standards. This would mean that we must temporarily cease all activities, which costs a lot of time and money. However, I question the analysis results, since we take all the necessary measures to filter the water we drain. What should I do?

1. I have a second analysis done by another laboratory and until I get the results I proceed with the work.

2. I ignore this analysis. Should the regular test in six months’ time show a change for the worse, I will take action then.

3. I stop all activities in order to take additional measures to improve our wastewater treatment.

4. I leave the decision up to our company’s management.

8. Fair clothing

I have purchasing responsibility for a clothing brand. One of our suppliers in Asia recently received negative local publicity due to poor working conditions. This news was not picked up by the international media. Because this supplier is certified it is monitored by an independent agency. During the most recent inspection, everything was fine. What should I do?

1. I pay no heed to this; it is a matter for the supplier and the inspectors.

2. If the news pops up in the international press we will immediately sever all relations with the supplier.

3. I call in an independent investigator myself to thoroughly investigate the supplier’s business practices.

4. I immediately sever all relations and distance ourselves publicly.

9. A fixture

My company has been situated at the same location for several generations. This is a region that currently suffers high unemployment. A town on the other side of the country has offered me an appealing business site with lower costs and better infrastructure. Moving the business would mean having to lay off some of the local employees, but it would generate considerable accommodation cost savings in the coming years. What should I do?

1. I leave my company where it is.

2. I move my company.

3. I demand a subsidy from the municipality where my company is currently located in order to stay.

4. I move my company and make a sum equal to the first two years’ cost savings available to fund the redundancy scheme for the employees who are unable to move along with the company.

10. Hint to sell

As an independent consultant I regularly visit the Finance department of a listed company. While chatting with a staff member at Internal Audit department he tells me despairingly that a press release will be issued in three days’ time announcing that the company has applied for a suspension of payments order. I realise their shares could become worthless. My wife has inherited 200,000 euros worth of shares in the company. What should I do?

1. I tell my wife that she should sell her shares.

2. I make a subtle remark and see whether my wife picks up on it.

3. I make the employee aware of the fact that he shouldn’t have said anything and do not act on the information.

4. I keep my lips sealed.

Which of the 10 ethical dilemmas was most difficult for you?

Want to learn more?

KPMG Dilemma AppKPMG Ethics Game

Book about dealing with dilemmas

© 2016 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. Printed in the Netherlands.

The KPMG name, logo and ‘cutting through complexity’ are registered trademarks of KPMG International.

Thank you!

kaptein.muel@kpmg.nl