The situation, as described in the question, in which none of the alternatives seems morally acceptable is called an ethical dilemma.
An ethical dilemma (ethical paradox or moral dilemma) is a problem in decision making process between multiple possible alternatives, where none of them are absolutely acceptable from an ethical perspective. Ethics represents the moral principle and standards by which individual and entities govern their behaviors and decision making. The major challenge of an ethical dilemma is that it does not have an obvious or straightforward solution that satisfies the ethical norms. Ethical dilemmas are common in businesses which usually adhere to their code of conduct and ethical standards to resolved decision making issues.
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