Final answer:
An ethical dilemma occurs when someone must choose between a course of action offering personal or organizational benefit or both, but for which there is no clear right or wrong decision. It is important for organizations to establish a formal code of ethics to guide decision-making and resolve ethical dilemmas responsibly.
Step-by-step explanation:
An ethical dilemma occurs when someone must choose between a course of action offering personal or organizational benefit or both, but for which there is no clear right or wrong decision. It is a situation where a person faces conflicting moral choices and there is no obvious or easy solution.
For example, suppose a manager is faced with the dilemma of either laying off a group of employees to cut costs and save the company, or keeping all employees but risking the financial stability of the company. In this case, there is no clear right or wrong decision because both choices have potential benefits and drawbacks.
It's important for organizations to address ethical dilemmas by establishing a formal code of ethics, which can help guide decision-making and provide a framework for resolving such dilemmas in a responsible and ethical manner.