Professionals have busy days and to make sure they maintain ethical behavior, a framework for making ethical decisions helps greatly. A framework helps practioners apply the framework and analyzing the particular circumstances of each available alternative, investment professionals are able to determine the best course of action to fulfill their responsibilities in an ethical manner.
Frameworks help professionals keep a long-term perspective and less of a self-interest perspective. The chances of bad judgment due to overconfidence bias are reduced vastly. Frameworks help avoid unknown unethical dilemmas. It also helps service and explain actions to all stakeholders.
- Identify: Relevant facts, stakeholders and duties owed, ethical principles, conflicts of interest
- Consider: Situational influences, additional guidance, alternative actions
- Decide and act
- Reflect: Was the outcome as anticipated? Why or why not?
We can use this framework and apply it to ensure ethical behavior in multiple professional situations. By using this framework continuously one can start identifying possible pitfalls and address them without ethical lapses.