How to Handle Ethical Problems as a CEO

As a small-business owner you are the chief executive officer of your organization. One of the facets of your role as CEO is handling ethical problems that arise in your workplace. Solving ethical dilemmas requires you to carefully consider all aspects, get help from the best sources available, including historical accounts.

Collect and Weigh Evidence

Before acting in regard to an ethical problem, you should collect and weigh all the evidence you can obtain. Speak individually to all those directly involved with the issue. Take notes on what each person says. Look for discrepancies in accounts, and seek to discern what is true. It is necessary to consider the consequences involved in the handling of an issue and what would be fair treatment in its resolution before you can make a determination as to how to handle a particular ethical quandary.

Avoid Rationalizations

Though it is tempting to rationalize away ethical problems, do not let this occur. You must carefully guard against making excuses for an ethical problem in need of rectifying. For example, if a well-liked employee stole goods from the company yet remained employed while a less-liked worker was fired from the same offense, this is an ethical issue that must be resolved. You cannot rationalize that the retained employee was kept because he was, in general, a good guy while the other was fired because he did not possess as many good qualities. Ethical handling requires you to treat all persons the same, all circumstances being equal.

Seek Wise Counsel

When you are a CEO of a small business facing an ethical problem that is difficult to deal with, you should seek wise counsel. One way to ensure you receive good advice is by speaking with more experienced leaders who have dealt with a variety of issues involving ethics. Ask other successful and respected small-business owners for their opinions on specific issues. Be careful, however, not to reveal confidential information, as doing so would be unethical itself.

Look at Precedents

Another way to approach an ethical problem in the workplace is to look at precedents. These are examples of the same type of issues and how these were resolved by small-business CEOs. Look at written business sources and documented court cases to find situations similar to the one with which you are handling. Discovering the ethical choices others have made in similar situations will often help guide you in resolving a similar problem at your company.