Compensation Dilemmas: An Exercise in Ethical Decisionmaking

Abstract

The issue of ethical decision making has attracted considerable attention in recent years. However, the topic of ethics as it relates to employee compensation has been largely ignored. This paper describes an exercise that presents students with 10 different ethical compensation dilemmas and requires that they resolve them. Students learn three different ethical approaches (utilitarian, moral rights, and justice) and how to apply them to the dilemmas. They also learn about the relationship between values, ethical climates, and ethical decision making.