ABSTRACTIn this paper I attempt to show that our commonly shared ideas of justice, which include principles of fair distribution and of compensation for past injustices, tend to come into conflict in practice, and generate serious dilemmas for persons in certain positions of authority, such as managers. I identify the source and nature of such dilemmas, and sketch a rough pattern for analysing and partially resolving conflicts between the duty not to discriminate unfairly and the duty to compensate for past unfair discrimination. After stating what I regard as widely shared ideas of justice, I emphasise their application to actual policy decisions of the small‐scale sort, using general precepts for avoiding or minimising conflicts. The precepts include a commitment to the priority of compensatory justice. The paper includes theoretical portions, principally defences of my position against other views on the relationship between compensation and fair distribution. I end with an examination of the virtues and limitations of money as a tool for compensatory social policie