IS IT EVER ETHICAL TO LIE TO CUSTOMERS OR EMPLOYEES FOR THEIR OWN GOOD?

Is it ever ethical to lie to customers or employees for their own good? This question is complex, with a variety of answers you can delve into. Our instinct may be to immediately say no, but let’s take a look at the other perspective. 

In many situations, withholding bad news can prevent mass panic and paranoia. For an example of mass paranoia, take a look at COVID-19, where mass hysteria led to nation-wide depletion of toilet paper. Although COVID-19 was shared, business decisions or ideas, which may have lesser stakes, could arguably be withheld in order to reduce consumer hysteria. Additionally, oftentimes a company has to withhold information from the consumer; mergers, for example, are confidential, and deception is necessary in order to maintain a larger good. Finally, another reason out of the hundreds that there are, is that company leaders shield harmful uncertainty from employees in order to maintain morale and productivity; similar to the first reason, mass hysteria could also affect employees and the business itself, leading to even more subsequent negative effects. 

Now, let’s shift to the antithesis side of the argument: lying is never ethical in business. The first idea is that lying removes an individual’s ability to make an informed decision that could affect their financial future, such as investing in a company. Second, some could argue that withholding bad news on business issues is unnecessary, since stakes are low in comparison to life-threatening scenarios–such as a pandemic. Moreover, the idea that you are lying for someone else’s own good can easily be used corruptively to rationalize immoral behavior. Finally, there’s the argument that by lying, we are taking away consumer’s and employee’s rights to autonomy. 

Although honesty may seem like the best step at first glance, one must also consider how lying can sometimes lead to the greater good. What do you think?