BUSINESS ETHICS
May 18, 2009
I took part in a panel discussion on business ethics in the financial services industry at an event organised by one of our members, Hudson. It was a lively affair, mainly because the audience was keen to participate in the discussion and not just listen to the thoughts of the panel (which were, in my own case, rather sparse). It covered a very wide range of topics, from the role of non-executive directors to the value of the professions in maintaining a company's ethics.
Towards the end of the event, one member of the audience, who was in fact a trained philosopher, made the observation that our discussion was about process and governance much more than it was about actual moral judgements. So we talked about the rule of law, the importance of fully informed decision making and so on, but not about whether it was morally right or wrong to do certain things eg invest in CSR activities simply for the marketing benefits to the company, rather than for wider social good, which then becomes a secondary motivation.
I agree with him but defend our failure to tackle such matters of, essentially, moral judgement. Such judgements in the commercial world have to be made in the light of circumstance. Law, custom and practice provide a framework but they don't give answers. I think that is one reason why our professional bodies - CIOBS, ICAS, the Law Society of Scotland - devote so much time to describing the ethical standards that apply to their members.
It was a timely debate when our industry is facing questions about ethics in areas like remuneration and lending. But it reminded me that ethics and morals are matters more often of opinion, custom and practice than empirical proof.
Owen
