The purpose of this article is to offer guidelines to deal with hard choices, specifically in situations where some compromise among opposing values is inescapable. The guidelines are intended to help ethicists and practitioners to delineate different alternatives and to dismiss some of them as morally unacceptable. This article explores the view that compromises arise from negotiations but from ethical predicaments as well. For this reason, I distinguish between strategic and moral compromises. Both managers and employees are individual moral agents who have to confront the possibility of unpalatable and even disgusting compromises, so that they are forced to put their integrity into risk in certain compromise situations. However, I shall argue for the possibility of palatable moral compromises. The guidelines to cope with those situations and to identify the unpalatable compromises are based on J. S. Mill's moral philosophy. Mill suggested that half‐measures passed in Parliament must have certain key elements to be morally acceptable. I make use of this doctrine to put forward compromise guidelines in the form of a set of hallmarks, internal and external elements of palatable compromises. Two minicases are used to test the guidelines and to emphasize the importance of compromises for ethical decision making and commitment to company.