Seven Common Ethical Issues for Water Utilities
- JD Solomon
- Aug 11
- 3 min read
Whether it's for the enterprise or a major infrastructure program, there are a handful of ethical issues that are common to all water utilities. These are the issues that can get you fired and often result in court action. At best, encountering these ethical issues with a pre-planned approach will stagnate your career. There are three key solutions provided at the end of the article.
The Top Seven Ethical Issues for Water Utilities
1 - Procurement
Most water utilities have procurement standards or ordinances; however, many are outdated or do not incorporate the needs of big programs. In the case of alternative project delivery, the run-and-gun pace often sets up ethical dilemmas. In all cases, staff preferences combined with the quantity and size of water utility purchases lead to decision-making conflicts.
2 - Employment
Hiring and promotions are just as vulnerable to bias as vendor selection. Utility leaders naturally want to work with people they trust, but this preference must never override fair hiring practices. The perception of favoritism can erode morale and public confidence. A transparent recruitment process with clear job requirements and scoring systems helps ensure decisions are merit-based.
3 - Involvement with Staff
Too much involvement with staff is a trap many board members fall into. The ethical dilemma relates to the decision-making responsibility at the policy level versus the decision-making experience at the operational level. Board members and staff need to work as a team while staying in their designated lanes. The art of communicating openly while honoring the boundaries between policy leadership and operational control is challenging in most organizations.
4 - Committees
Committees, whether part of a utility board or a major program oversight team, are meant to study issues in detail and make recommendations. Ethical concerns arise when committees overstep their authority, make binding decisions without proper approval, or fail to maintain transparency in their deliberations. A well-defined charter, open meeting practices, and clear reporting lines can help, but are usually not enough.
5 - Donations and Community Engagement
Water utilities are integral parts of their communities and are asked to sponsor events, support nonprofits, or contribute resources. Capital infrastructure programs usually require extra support in the community based on their scope and timelines. It’s easy to blur the lines when requests come from influential vendors, political figures, or community activists.
6 - Social Media
Social media is a minefield for ethical missteps. Staff or board members posting personal opinions may inadvertently misrepresent the utility, release sensitive information, or damage public trust. Even “liking” or sharing certain posts can be perceived as endorsing a position.
7 - Text Messaging and Informal Communication
Quick, informal communications—texts, instant messages, and personal email—are convenient but can raise transparency and records-retention issues. Using texts for decision making or sensitive topics can bypass proper documentation and public oversight. In most U.S. states, text messages are considered “discoverable” in legal proceedings as well as under the freedom of information statutes.
Three Solutions to the Top Seven Ethical Issues
In our training and workshops, we discuss three things that can be used to avoid ethical issues.
Personal Ethics Framework
It’s usually too late if you wait to be confronted with an ethical challenge. Examine each of the seven areas and develop a personal approach to each one. In the wild, every issue will look a little different. However, having an ethical approach in each category will give you a firm foundation for a response.
The Ethics Triangle
Remember, there are different ethical approaches for making decisions. Virtue, Consequences, and Duty-based ethics are the three types that make up the ethics triangle. The Ethics Triangle encourages decision makers to examine an issue from all three angles, leading to decisions that are both principled and practical.
10 Questions Before Interacting with Staff
If you are a board member or an executive leader, reflect on ten questions before interacting with staff. Self-awareness is the best pound of prevention for avoiding ethical issues that impact decision making.
How to Change and Maintain Your Ethical Culture
JD Solomon Inc. provides half-day and full-day training on ethics for board and senior management. Don’t miss out on these highly praised, interactive sessions that bring your team together on ethical issues and decision making.
JD Solomon Inc. provides solutions for program development, asset management, and facilitation at the nexus of facilities, infrastructure, and the environment. Visit our Program Development page for more information on business cases, third-party assessments, phasing projects, and related services.
