Lesson 6 of 6 · 14 min

A framework for ethical decision making

An identify–consider–act–reflect framework makes you look at a decision from every stakeholder's angle before acting, so fewer choices have ethical consequences you did not see coming.

In short

  • A code of ethics is necessary but not sufficient; individual judgement, trained through practice, turns principles into good decisions.
  • Senior management building a culture of integrity may be the single most important factor in promoting ethical behaviour in a firm.
  • Framework: Identify (facts, stakeholders and duties, ethical principles, conflicts of interest) → Consider (situational influences and biases, additional guidance, alternative actions) → Decide and act → Reflect.
  • The process is iterative, not a fixed sequence; you may loop back for more information, and sometimes no fully acceptable answer exists.
  • Seek guidance from someone not exposed to the same influences; raising an issue first with a senior person inside the firm is often a good starting point.
  • Client interests come before those of the employer, colleagues and yourself, except where market integrity takes precedence.

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A framework for ethical decision making · Ethics and Trust in the Investment Profession