16 March 2016

ETHICS / GOVERNANCE

Ethics allows us to make wise choices and to consider the fundamental values that underpin all decision-making.

For the most part, ethics in law is confined to codes of conduct. These refer above all to a concrete system of rules, duties and obligations, codified and written like laws. A code of conduct lays out the norms of conduct for a profession.

Nevertheless, ethics is far richer, and proves to be a useful tool in any decision-making process. The importance of ethics lies in the opportunity for self-control, and doing the necessary thinking before acting. Ethics makes for more responsible decisions, and complements existing regulatory mechanisms. In this sense, ethics is a preventive process of self-regulation. Ethics allows for free choice, while taking account of other interested parties, the environment, and also the harmonious relations we want to establish.

The starting point is thus above all a profound reflection in order properly to understand what the possible solutions are. Applied ethics is often described as having two phases: first, a phase of ethical deliberation, in which an individual engages in critical reflection based on his or her own judgement; second, a dialogue phase, which calls upon the individual’s responsibilities and transparency.

Applied Ethic Governance Companies Board Ethic

The significance of ethics for decision-making is that it can alleviate many problems that are not subject to the law or within the ambit of well-defined laws, law being by nature incomplete. To make an ethical decision is to choose the best decision all things considered, after having weighed the negative and positive repercussions that it will have for the person making it, but also taking others into consideration.

Thus, ethics complements the law, and can prevent errors in judgement and divergences of conduct, since it provides for reflection and dialogue in any decision-making process. It asks “why?” before asking “how?”

In a context of growing challenges for businesses, decisions are made based on the effects they will have on goods and services, and also in relation to all concerned parties.

Ethics can therefore give guidance to administrators and leaders, by sensitizing them to the duty to act in such a way that all their decisions are justified and have a raison d’être. Ethics offers solutions to many of the problems decision-makers face.

(1) It offers a way of prioritizing one decision over others, taking many individuals and factors into account through an analysis of shared values.

(2) Ethics can help prevent discriminatory decision-making.

(3) Ethics gives the decision-maker the capacity to justify important decisions on a basis of deeper knowledge. It prevents mendacity.

(4) Ethics avoids incoherence.

(5) Ethics can help avoid disproportionate disciplinary measures.

(6) Ethics offers a means of conflict management, and of successfully passing the “media test”: what would your answer be if you were questioned by the media today?

(7) Ethics goes beyond mere conformity with the law.

Applied ethics enables good situational diagnostics, allowing you to target rejected alternatives and properly define the facts in light of the situation. It identifies the choice most likely to be favoured, as well as defining the decision which would be the spontaneous result of natural preference. Ethics affords consideration to all stakeholders and takes account of the repercussions a decision has on them.