Ethical Concerns and Dilemmas In Government And Private Institutions

Both government and private institutions face a range of ethical concerns and dilemmas that stem from their roles, responsibilities, and interactions with stakeholders. These challenges often test the moral compass of individuals and organizations, highlighting the need for ethical awareness, decision-making frameworks, and responsible governance.

Ethical concerns in public and private institutions 

Ethical Concerns in Public Institutions

Ethical concerns can arise in public institutions when the actions or decisions of those institutions or the individuals working within them do not align with the values, principles, and standards of behaviour that are expected in the public sector.

It is important to have a look at the ethical principles that should be followed in Public Office, as they will act as guiding forces in resolving the dilemmas in public office.

• Legality: Legality refers to whether an action is permitted or prohibited by law. Public officials must follow the law and ensure that their actions are legal.
• Rationality: The concept of rationality pertains to the capacity to think logically and arrive at sound conclusions grounded in factual information and evidence.
• Utilitarianism: While making policies and decisions, an administrator should ensure the greatest good (happiness, benefits) of the greatest number.
• Accountability: Accountability is the answerability of the public official for his actions. 
• Work Commitment: Public officials should work with full commitment to achieve the goals set by the constitution, laws, and government. 
• Responsiveness: Respond effectively to demands & challenges from outside and within the organization. 
• Compassion towards weaker & vulnerable sections: The weaker section includes the poor, beggars, orphans, senior citizens, persons with disabilities etc. Such compassion means understanding and empathizing with the sufferings of the marginalized section of society. 
• National Interest 
• Maintain Transparency
• Ensure Integrity

Some common ethical concerns in public institutions

1. Administrative Discretion

• Within the rules and regulations laid down by legislation and within the prescribed procedures, there is ample opportunity for the public official to use his discretion. 
• The problem is that selecting one path of action from among several alternatives is often made based on personal preference, political or other affiliations, or even personal aggrandizement. 
• For example– In State of Punjab v. Khan Chand, the Supreme Court was of the view that:
• Considering the complex nature of problems that have to be faced by a modern state, it is inevitable that the matter of details should be left to the authorities acting under an enactment. Discretion has, therefore, to be given to the authorities concerned for the exercise of the powers vested in them under an enactment.

2. Corruption 

• According to the World Bank, Corruption is the use of public authority for private gain. 
• Corruption can take many forms, including bribery, red-tapism, embezzlement, nepotism, and favouritism.
• Corruption can lead to the violation of public trust, distort the allocation of public resources, and undermine national growth.
• For example, a junior officer is promoted, without the required qualities, ahead of a deserving senior and meritorious officer. The entire department gets affected and a wrong message is given to the people that efficiency and honesty are not the criteria for reward, but influence and contacts, manipulative lobbying are required.

3. Administrative Secrecy

• Administrative Secrecy involves withholding information from the public to protect national security or the privacy rights of individuals. 
• Although Administrative Secrecy can be necessary in certain situations, it can provide an opportunity to cover up unethical conduct and promote corruption.  
• For example– Public procurement is one of the government’s secret activities most vulnerable to corruption. In addition to the volume of transactions and the financial interests at stake, corruption risks are exacerbated by the complexity of the process, the close interaction between public officials and businesses, and the multitude of stakeholders.

4. Nepotism 

• Nepotism is the practice of showing favouritism towards one’s relatives and friends, thereby ignoring the merit principle and equal opportunity.  
• For example– Family members have also led the Congress party for most of the period since 1978 when Indira Gandhi floated the then Congress(I) faction of the party. The ruling Bharatiya Janata Party also features several senior leaders who are dynasts.

5. Information Leaks 

• Leaking official information at a date prior to the public announcement. Such disclosure of the information can lead to chaos, corrupt practices, or improper monetary gains. 

•  The leakage of confidential data can jeopardize national security or harm individuals and organizations. 
• Such leaks can undermine public trust in government institutions as the government acts as the custodian of data in a fiduciary capacity.
• For example,- Aadhaar and passport information along with names, phone numbers, and addresses; the hacker claims, were extracted from the Covid-19 test details of citizens registered with ICMR. As proof, ‘pwn001’ posted spreadsheets with four large leak samples with fragments of UID data. Upon analysis, these were identified as valid Aadhaar card IDs.

6. Other Concerns

• Abuse of sick leave privileges
• Extended tea breaks 
• Violation of office rules in general.

Reasons for Unethical Behaviour of Public Servants

There are a variety of reasons why public officials may engage in unethical behaviour. Some common reasons include:

• Personal gain: Public officials may be motivated by a desire for personal financial gain or to advance their careers.
• Power or influence: Public officials may abuse their power or influence for personal or inappropriate purposes.
• Lack of accountability: If there are insufficient mechanisms in place to hold public officials accountable for their actions, they may be more likely to engage in unethical behaviour.
• Culture of corruption: If corruption is prevalent within an organization or society, public officials may be more likely to engage in unethical behaviour.
• Personal values or beliefs: Public officials may act unethically if their values or beliefs conflict with the values or standards of behaviour expected in the public sector.
• Pressure or temptation: Public officials may be tempted to engage in unethical behaviour if they are under pressure to meet certain goals or if they are offered incentives or rewards for unethical behaviour.
• Excessive security: Excessive security which has been provided in Acts like PoCA and Article 311 of the Constitution etc. is misused by corrupt and unethical civil servants.

Ethical Concerns in the Private Sector 

Ethics in private institutions refers to the ethical principles governing business activities. Business ethics is the predominant source of guidance in Private Business institutions. The ​philosophy may vary from organization to organization; however, fundamentals remain the ​same.

• Quality of products and services: Providing quality that falls short of what the organization promises is always viewed by society as immoral.

• Integrity of the Audit Process: Companies have been found to fudge their balance sheets: E.g., Satyam Case, DHFL case, etc.
• Insider Trading and manipulation of share prices
• Cartelization: Big Corporations in oligopolistic markets form cartels to set the buying or selling price and make the entry of new players impossible.
• Lobbying with the governments for favourable policies like subsidies, tax reductions, contracts, etc.

Ethical Concerns with Employees 

• Moonlighting:  It is the process of working for multiple organizations. Ethically, an employee shouldn’t work in more than one place simultaneously (in 2022, Wipro, Infosys, etc., removed workers due to moonlighting because such workers may disclose the parent company’s trade secrets or client list to other rival companies.)
• Taking credit for others’ work: Employees often work in teams to create marketing campaigns, develop new products, or fine-tune services, yet rarely does everyone in a group contribute equally to the final product. If all employees accept equal praise even though only a select few did the real work, it is wrong. Team members should insist that all employees perform specific tasks to help complete a project. 
• Harassing co-workers (physically, psychologically, or sexually): Employees often don’t know what to do if they see one of their co-workers harassing another employee either mentally, sexually, or physically. Employees may worry about their jobs if they attempt to report a superior for harassment. The best way to resolve this ethical dilemma rests with the staff members who develop the company’s employee handbook. It is their job to include specific language that spells out that an employee won’t be punished for reporting the harassing behaviour or inappropriate actions of their co-workers.
• Failing to maintain the company’s privacy policy: An employee shouldn’t give the company’s data to another company/competitor.

Ethical Concerns wrt Employers

• The utilization of organizational resources to fulfil personal needs is unethical. E.g., Making unnecessary phone calls at the company’s cost, using office hours for private work, Taking advantage of the travel benefit.
• Taking excessive leaves beyond the allowed number.
• Sexual harassment at the workplace
• Unnecessary delay in paying the employee’s provident fund and gratuity.
• Hire and fire culture, i.e. firing the employees on frivolous grounds for budget management or reducing expenses. 
• Gender Neutrality: Some organizations favour men over women due to issues like maternity leaves and other gender-associated prejudices.

• Taking Credit for Others’ Work: Employees frequently collaborate in teams to produce new goods, improve services, and come up with marketing initiatives, but this rarely results in equal contributions from all members of the group. It is improper for all employees to receive equal recognition when only a small number have completed the necessary work. To aid in the completion of a project, team members should ensure that all employees execute certain tasks.
• Harassing Behaviour: Employees frequently are unsure about what to do if they witness another employee being sexually, emotionally, or physically harassed by a coworker. If an employee attempts to report a superior for harassment, they can be concerned for their jobs.
• Transparency and disclosure: Transparency and disclosure are important ethical concerns in private institutions because they help to build trust and confidence in the organization and its actions. They also help to ensure that stakeholders have the information they need to make informed decisions about their relationship with the organization.

• Favouritism, Nepotism, and Partisanship: Conflict of interest in appointments, especially in ​family-run companies, like the appointment of relatives to positions such as the board of directors.  Employers also favour with regard to promotions and bonuses.

Ethical dilemmas in government and private institutions

Ethical dilemmas refer to situations in which individuals or organizations face conflicting moral obligations or values, and must choose which course of action to take. Ethical dilemmas can arise in both public and private institutions.

It is a decision you have to make that could result in hurting one person or group but benefitting another.

For example, Government agencies may use confidential information, like social security numbers or names of people suspected of a crime, as part of their duties. There are privacy rights that prohibit government agencies from releasing this information without the express permission of the person to whom it belongs. 

It can be a dilemma for agency workers whether they should protect their privacy rights or obey their employer’s orders by disclosing confidential information to someone else.

Let’s understand with another example, Public servants may face ethical dilemmas when they become aware of wrongdoing or illegal activities within their organization and must decide whether to report it, potentially risking their own careers or relationships with colleagues.

Reasons for Dilemmas

Some common reasons for dilemmas are as follows:

• Conflicts of interest: This occurs when an individual’s interests or relationships conflict with their duties or responsibilities within the organization.  For example, a public official may face an ethical dilemma if they are asked to make a decision that could benefit a family member or close friend.

• Transparency vs. confidentiality: Public and private institutions may be faced with ethical dilemmas when deciding whether to disclose sensitive information or to keep it confidential.  For example, a private company may face an ethical dilemma when deciding whether to disclose information about a product defect that could potentially harm consumers.

• Individual vs. collective interests: Ethical dilemmas may arise when an individual or organization must choose between acting in their interests or the interests of a larger group. For example, a private company may face an ethical dilemma when deciding whether to pursue a business opportunity that could benefit the company but could potentially harm the environment or the community.

• Rights and responsibilities: Ethical dilemmas may arise when an individual or organization must choose between conflicting rights or responsibilities. For example, a public official may face an ethical dilemma when deciding whether to prioritize the right to privacy of an individual, or the responsibility to protect public safety.

Types of Ethical Dilemmas

There are various types by which we can understand ethical dilemmas in Govt. and private institutions are as follows:

Personal Cost Ethical Dilemmas 

• Arises from situations when compliance with Ethical Conduct results in a significant personal cost to the decision-maker 
• These are easy to solve (at least in the case of studies) because one option is definitely incorrect, although if we go with the other option, we have to pay a personal cost. 
• These personal costs include jeopardizing held positions, missing opportunities for material or financial benefit, and injuring valued relationships. 

 Right vs Right Ethical Dilemmas 

It arises from situations of two or more conflicting sets of bona fide ethical values. For example: 

1. Transparency vs Secrecy: Public Servant’s responsibility of being open and accountable to citizens versus that of adhering to the oath of secrecy/confidentiality 
2. Justice vs Mercy: A public official may have to decide between enforcing the law strictly and punishing a wrongdoer or showing mercy and granting leniency to the wrongdoer in light of extenuating circumstances.

Conjoint Ethical Dilemmas 

It arises from situations in which a conscientious public servant/ –decision-maker is exposed to a combination of the already-mentioned ethical dilemmas for the “right –thing –to do”.

For example, Corruption v/s National Security and Job.

Principles to be used in resolving ethical dilemmas

Ethical dilemmas can be solved by adhering following processes– 

• • Prioritizing public interest: Officials should put the public interest ahead of their own while taking action. For example: Cancel personal trips to manage law and order during festivals.
  • Comprehensive evaluation: An ethical dilemma should be resolved by considering all the options and taking a decision that gives ‘maximum welfare to maximum people’. For Example, 
    • Compulsory retirement in MTNL & BSNL staff to reduce the cost of the company and provide cheaper services to consumers. 
    • Merging of government schools to improve efficiency and synergy of resources. 
    • Disinvestment of PSUs like Shipping Corporation and BPCL to get funds for the development works

• Value neutrality: Public employees should avoid biased views and make choices based on Neutrality and affiliating him/herself with a particular ideology. For Example, The speaker of the house should provide opportunities to all members based on the values of Neutrality.

• Fusion: The fusion of individual, organizational, and social goals mitigates ethical dilemmas as a suitable option leads to all goals. For example, Green routes were provided to all ambulances from Balasore Rail accidents to the Hospital at Katak, by halting normal traffic.

• Law as a guide to resolve the dilemma: The rule of law is fundamental to politics and society in general. Law provides the minimum standard for ethics. For example, Traffic rules and regulations bring order to city road traffic.

Acts of double effect

Some actions have two effects—good and bad. How does someone decide the morality of such actions? Ethicists provide a few general principles to help decide the morality of acts of double effect. According to these principles, it may be morally permissible to perform an action that has both good and bad consequences if certain conditions are met. They are:

1. The action itself must be either good or neutral— that is, not intrinsically wrong. 
2. The good effect must be immediate—that is, not obtained through the evil effect. 
3. The intention or purpose must be good.
4. There must be a proportionately good reason or cause for performing the action in the first place.

Examples of the principle of double effect include administering pain medication to a terminally ill patient, which may have the side effect of hastening the patient’s death or bombing a military target during wartime, which may also cause civilian casualties.

The principle of double effect is often used to justify certain actions that might otherwise be considered morally wrong, such as euthanasia or abortion. However, the principle is also subject to debate and criticism, and its application can be complex and nuanced.

Conclusion:

Ethical concerns and dilemmas are inherent to both government and private institutions due to their interactions with individuals, communities, and society at large. Addressing these challenges requires a proactive approach that emphasizes ethical awareness, principled decision-making, and a commitment to serving the best interests of stakeholders. By upholding ethical values and promoting responsible conduct, institutions can contribute to a more just, transparent, and sustainable society.