In the preceding chapters you have learned a lot of useful information about what ethical leadership is, what a good leader looks like, what can help you to make ethical decisions and how to distinguish true information from fake news and misinformation. Now we will look at the more complex issue of ethical decision-making and leadership and you will try to come up with your own solutions to the various moral dilemmas and conflicts that can arise in decision-making.

You now know that ethical leadership refers to leading people based on moral values, integrity, transparency and fairness. Ethical decision making is then making choices between different options based on moral principles, values and impact on others.

If we look at this issue from a gender equality perspective, we find that ethical leadership can be one of the key tools for eliminating inequalities and creating the conditions for a level playing field for all workers, regardless of their gender or other differences. 

👉 In practice, however, we often find that many different factors enter into decision-making, influencing leaders’ decisions and the whole corporate culture. We call such situations ethical challenges or moral dilemmas and as you will see in the following text, sometimes it is not easy to deal with.

What moral dilemmas and ethical challenges do leaders face most often?

There are many situations where making the right decision in line with ethical principles is not easy. Decision-making is often influenced by various factors, conflicting interests, and unexpected circumstances that can complicate the process. Below are examples of specific dilemmas and challenges that arise in organizational settings:

1. Pressure for profit and quick results vs. long-term sustainability

Every organisation operates to achieve the highest possible benefit or profit. However, the pressure for immediate results can lead to ethical issues such as withholding information, data manipulation, covering up problems, excessive pressure on employees, or unethical working conditions.

📌 Example: The Volkswagen Dieselgate scandal in 2015, where the German automaker manipulated emissions tests to boost sales.

2. Crisis situations

Ethical dilemmas can also arise in unexpected situations and crises, such as a global economic downturn or a pandemic. In such cases, organisations must decide whether to lay off employees, reduce salaries, or offer unpaid leave to preserve jobs.

📌 Example: Companies like Airbnb and Patagonia implemented measures during the COVID-19 pandemic, such as cutting their CEOs’ salaries, to avoid mass layoffs.

3. Transparency vs. loyalty

Leaders may also face a moral dilemma when deciding whether to protect the organisation’s interests or be transparent and report ethical misconduct within leadership.

📌 Example: The Facebook Whistleblower Case, where a former employee leaked internal documents to journalists, revealing that harmful content was being spread for profit.

4. The importance of an individual vs. organizational culture as a whole

Unethical behavior can sometimes involve key employees who bring significant profit or possess irreplaceable knowledge but act unethically or discriminate against colleagues. How should an organisation respond in such situations?

📌 Example: Uber had to pay millions of dollars in settlements to female employees who were sexually harassed by executives whose behavior was overlooked for years.

👉 Can you think of other ethical challenges or moral dilemmas? We hope that what you’ve learned will help you make decisions aligned with ethical principles more easily. Now, let’s explore the specific barriers and challenges in the context of gender equality, which is our core topic.