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Ethical Dilemmas in Public and Private Institutions

Last Updated : 12 Oct, 2022
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Ethical dilemmas are common in business and public institutions as many issues need to be dealt with daily, issues that can be complicated to solve. These dilemmas give rise to the question of whether ethics plays an important role in decision-making or not. What are the factors that should be considered when making decisions? Is it best to sacrifice one thing to get another or should the focus be on what’s morally right?

What are Ethical Dilemmas?

Ethical dilemmas occur when a person is faced with choices between conflicting values. As an example, imagine that you are a nurse working in the emergency room and have to decide whether or not to tell your patient they have cancer. An ethical dilemma is a decision you have to make which could result in hurting one person or group, but benefitting another.

Pros and Cons of Private Institutions:

Private institutions, on one hand, may be seen as more flexible because they do not answer to any governmental organization. On the other hand, because private institutions lack oversight, they are not required to comply with certain regulations designed to protect people. They also have less accountability for their actions because they cannot go bankrupt as public institutions can. Furthermore, it is harder for groups of people to get together and start a private institution than it is for a group of individuals or a government agency to create a public institution.

Pros and Cons of Public Institutions:

Public institutions have a responsibility to provide their services to anyone willing to pay for them. This means that anyone, regardless of status or social position, can receive treatment from these public establishments. The downside is that as a result of serving everyone, many are unable to provide quality service due to a lack of sufficient time and resources. To combat this issue, some public institutions have shifted focus away from meeting basic standards of care or regulation to serving more clients per day.

Examples of Ethical Dilemmas at Private Institutions:

One particular ethical dilemma that private institutions are faced with is if they are obligated to disclose their clients. Another dilemma is how much information about the students should be shared to promote collaboration among them. There is also the question of what level of privacy for every student should be guaranteed by a university. Furthermore, there are questions as to whether or not a university can turn down admission applications from certain applicants based on race, gender, or religion.

Examples of Ethical Dilemmas at Public Institutions:

One dilemma is that 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.

How to Handle Ethical Dilemmas at Private Institutions:

  1. Keep information confidential, never breach confidence, or break a promise without permission.
  2. Respect personal privacy when collecting data or conducting research.
  3. Ensure that work conducted is ethical; adhere to local and international laws as well as institutional guidelines on human experimentation, animal experiments, etc. 

For example, in the US, private institutions must abide by The Code of Federal Regulations for The Protection of Human Subjects – Institutional Review Board (IRB) which states that informed consent shall be obtained from all subjects (FDA). In other countries, IRB approval may not be required but can be necessary depending on what type of research is being done.

How to Handle Ethical Dilemmas at Public Institutions:

Public institutions must provide fair, reliable, and cost-effective services for the people that they serve. This is why many public institutions adopt strategies such as taking market share away from competitors and focusing on large customers. However, these strategies can come at a cost because they may not be ethical or socially conscious. In contrast, private institutions do not face any legal obligations to serve a specific group of people or give service.

List all Possible Ethical Dilemmas for Both Public and Private Institutions:

Ethical dilemmas in public institutions often stem from resources or access to other resources. Whether it be a student taking another student’s seat at the university library, or a family without adequate space living next to an empty lot that is zoned for more housing units, ethical dilemmas can often be resolved by restructuring how resources are allocated. Ethics can also come into play when the property is publicly owned but privately used- for example, when a business leases public land.

Evaluate Each type of Dilemma from Both types of Institutions:

An ethical dilemma often means there is no clear answer or right course of action. Some dilemmas are personal and have to do with individual actions, while others concern work situations. When considering a more personal dilemma, it’s best to reflect on what your values are, and then think through various courses of action before choosing one. With dilemmas at work, you may be able to confer with colleagues or consult a set of guidelines (such as those published by your profession’s professional association) for guidance.

Public Institutions have a Higher Level of Accountability:

Public institutions often have higher levels of accountability than private institutions. They are more transparent, there is a greater chance of oversight, and they have to answer to the people. On the other hand, they are usually slower to change because they’re always striving for 100% compliance with a policy or regulation.

Public Institutions are more Transparent than Private Institutions:

Public institutions, such as colleges and schools, have to deal with much more scrutiny than private institutions. A school’s administrative structure is public knowledge, for example. On the other hand, a college might not be required to reveal any of its employees’ salaries unless it so chooses. So while public institutions are subject to open-records laws, most private ones aren’t.

The Role of Public Institutions:

Public institutions are comprised of those who work for a government or publicly funded entity. This includes law enforcement, teachers, public works employees, public school students, all first responders, etc. As workers in a public institution, you have an ethical responsibility to treat all people equally and with dignity even if they are not on your team. Your decisions should focus on what is best for the public interest and not on other factors such as race, religion, sexual orientation, or ethnicity.


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