One definition of "ethical" is "...in accordance with principles of conduct that are considered correct." If therefore a company resolves to be law abiding, for example, then technically everything that is illegal is therefore unethical.


The establishment of an ethical standard is relatively "easy". Living up to it is a whole other challenge.

The problem of "ethics" and an unequivocal statement of acceptable (ethical) behaviour in the business is the greyness surrounding market and corporate behaviour - it's the balance between performance and morality - and both get stretched in difficult or desperate circumstances. Some of these situations have been highlighted in previous postings but a few other examples are worthy of consideration:

1. The company has an opportunity of taking a weak competitor out of the market by keen pricing for a prolonged period. This action will help the corporation achieve its corporate objectives but in the process, will close down the competitor, put 350 people out of work in a single-industry town. What does the board do?

2. An underperforming company has an ethical and transparent policy for the conduct of its business in its home market. It has just landed a huge profitable export order. To secure the order it must pay the baksheesh asked for by the intermediary in the country of export. Does the board pay it?

3. Your company provides multi-use products to industry. A client has placed a huge order that enables you to exceed budget in a tough trading environment. The client produces chemicals. You KNOW (because the client told you) that the client's use of your product will be applied to weapons that are currently in use in a war zone where the use of those weapons has caused huge numbers of collateral deaths. Do you agree to sell your goods/services?

4. Your firm has a factory in a location where it employs 400, largely Evangelical Christians. It wishes to expand but there is no available labour. Twenty technically suitable fundamentalist Muslims wearing traditional dress apply. The wearing of their attire does not impact on their ability to undertake their proposed role. Do you hire them?

5. Your company provides IT systems. You secure a very large and profitable order for new IT systems that track individuals and, through an innovative GPS system, identifies the exact location of the individual at any time. Your client is the leadership of a Sadam Hussein-type autocracy. Do you sell it to them?

If you can't answer these questions, then I doubt whether an effective ethical standard can be developed that will apply in every circumstance.