While AI may enhance learning and administrative efficiency, it also raises concerns on academic integrity, algorithmic bias, and inconsistent institutional policies. This study examines the moral concerns of employing generative AI, specifically ChatGPT, in higher education. Using a descriptive and comparative survey-based research approach, it captures the opinions of students, educators, and policymakers in higher education, with a mixed-methods strategy. The findings necessitate a stakeholder-specific ethical framework to guide the adoption of AI responsibly in higher education. This work contributes to AI ethics by bridging gaps in stakeholder-specific concerns and making actionable policy recommendations. Through accountability, transparency, and inclusivity, the study favors the establishment of ethical governance mechanisms that ensure innovation aligns with responsible AI integration in higher education institutions.