Ethics: An Introduction

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Coping with Ethical Situations

The Right Path

Resolving ethical dilemmas is more a mental exercise than a matter of will power or of simply avoiding temptation. In the resolution of any ethical dilemma, a set of procedures can help determine the right path. As with solving a dilemma, a set of procedures or guidelines is helpful to properly evaluate all options. When performing an evaluation, consider these questions:

Is the action beneficial or harmful?

Is the action fair?

Does the action fulfill my commitments?

Is the action legal?

Let's take a further look at each one.

Beneficial or Harmful? Often when we judge the worth of an activity we limit our consideration as to how it will hurt or help us, i.e., whether or not it is in our own interest. Ethics, however, forces us to go beyond simply considering our own interests. The fact that something benefits you is, of course, a good reason for doing something. But if an action benefits you while hurting others, it becomes problematic.

The best actions benefit everyone involved. That's the idea behind the popular strategy of "win/win" solutions. If, however, the only options involve actions that are both beneficial and harmful at the same time, we need to look at other considerations. One of those considerations is the fairness of the action.

Is the Action Fair? To determine whether the action is fair, you might ask who is entitled to what? With respect to our agent scenario, we might claim that because clients are entitled to services that put them first, allowing an agent's behavior to continue, when that behavior is harmful to clients, is unfair to the clients. We can ask whether it is fair to fire the agent. It might be argued that firing him is just recompense for the abuse of his position. Nevertheless, it also might be argued that one should temper justice with mercy for the agent, particularly if he is willing to compensate his clients. If the agent is fired, does fairness demand that the company make amends, financially or otherwise, to the clients?

Does the Action Fulfill my Commitments? When the agent makes a commitment as an agent and a member of a company, certain responsibilities come along with that commitment. It is important to keep this consideration in mind. When an agent makes a promise, the agent is obligated to keep it. When an agent takes on a job, the agent has made a promise to do what the job requires.

Commitments are special things. Human beings are "promise-making" animals, and they flourish because they can rely on the promises they make to one another. Agents have responsibilities to clients, fellow agents, and to the company or companies for whom they work because of implied or explicit promises (commitments) they have made to them, one of which is professionalism. A commitment to professionalism gives the agent a further responsibility: to uphold the profession.

Is the Action Legal? The final consideration should be concern about the option's legality. The connections between laws and ethics are too complicated to be spelled out in detail, and it is clear what is legal is not necessarily ethical. In most cases; however, laws are reasonable, so if an action is illegal there is good reason to believe the action is not ethical and, thus, not do it.

Applying these considerations should help you evaluate a course of action. If an action is beneficial, fair, consistent with our commitments and legal, we have every reason to perform it. If it is harmful and unfair and requires us to break our word, and is illegal as well, we have every reason to avoid it. If it is some of these but not all, we have a dilemma - one of those gray areas. Not every situation involves all of these reasons, but most involve one or more.

In the real world, the right answer often is not the easy one. Sometimes we must live with moral ambiguity. Still, in spite of that ambiguity, we need to strive to ascertain which actions are the better ones - which actions conform to the most important ethical principles while violating the least. Such analysis requires much thought and is enhanced by serious dialogue and consideration. Hopefully the dialogue will be aided by the questions in this article, and will help you find the right path.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and InsuranceEthics101.com, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.