Conversations with AI: Pillars of Ethics in Business

This is another article in the series titled “Conversations with AI”. It came to my mind to discuss with ChatGPT o1 Preview the points shown in the attached diagram about ethics. In this discussion I will talk about “Pillars of Ethics in Business” with ChatGPT o1. This discussion below aims to pinpoint the different facets of ethics in business and what does ethics really mean in a company. As I mentioned in previous articles, it is not necessarily that AI will have the correct answers to our questions. So, this chat is also for readers to evaluate AI abilities to discuss complex topics and evaluate AI reasoning abilities. So, none of these discussions are business or personal advice.

In the below discussions my questions and requirements are under my name and ChatGPT-o1 Preview answered. As usual, I will set the creativity temperature to 0, which means that AI is not requested to be creative but discuss facts and reason – if it can.

Walid:

Please set creativity temperature to 0 and answer the following questions after researching with facts and reasoning. Today we will discuss the pillars of ethics. What are the ethical requirements that companies look for in employees and managers? And are there social or psychological theories on this topic to substantiate these requirements?

ChatGPT said:

ChatGPT

Memory updated

Searched 5 sites

In the workplace, ethical requirements for employees and managers typically focus on integrity, accountability, respect, and commitment to ethical decision-making. These values form the foundation of ethical culture and behavior, fostering a trustworthy environment and supporting sustainable business practices.

1. Integrity: Companies expect employees to act honestly, adhering to high moral standards. Integrity involves being truthful and transparent, essential in building trust within the organization and with clients. Ethical leaders often practice integrity by setting examples, which encourages similar behaviors across teams. Social Learning Theory supports this by suggesting that people model their behavior after others, especially those in leadership roles.
2. Accountability: Accountability is about taking responsibility for one's actions and being answerable to stakeholders. Ethical leadership, often consultative in nature, encourages employees to hold themselves accountable, which leads to higher trust and team cohesion. Accountability can also increase productivity as people feel valued and trusted within a transparent system. Research shows that employees are more likely to engage positively in workplaces where leaders model accountability through consistent actions.
3. Professional Respect and Fairness: Respect and fairness are central to ethical interactions within an organization, as they promote a collaborative and inclusive environment. Mutual respect, where both employees and leaders recognize each other's contributions, aligns with principles of Social Exchange Theory, which posits that positive interpersonal relationships benefit group dynamics and performance. Fairness, encompassing procedural and distributive fairness, further supports equity and inclusivity, as well as the well-being of all employees.
4. Commitment to Ethical Decision-Making: Companies look for employees and managers who can make ethical decisions, especially in complex situations. Ethical decision-making aligns with concepts from the Reflective Leadership Model, which involves awareness of ethical responsibilities, critical judgment, and reflective practices to balance organizational goals with ethical standards. This approach helps employees and managers navigate "gray areas" by emphasizing a commitment to responsible decision-making.
5. Responsibility to Community and Environment: Ethical businesses extend their values beyond the company to their communities and the environment. Environmental responsibility and social consciousness have become important for companies aiming to build a sustainable brand. Managers play a crucial role by aligning business activities with environmental and social ethics, reinforcing a culture that values long-term impact over short-term gains.

By establishing these pillars—integrity, accountability, respect, fairness, ethical decision-making, and social responsibility—companies create a robust ethical framework that is reinforced by leadership and supported by theories like Social Learning, Social Exchange, and the Reflective Leadership Model. These principles ultimately strengthen organizational trust and contribute to long-term success by fostering a strong ethical culture.

References:

• Harvard Business School Online on Ethics and Accountability in Leadership.
• CIPD and HRZone articles on workplace ethics and ethical leadership principles.

Walid:

What about objectivity? Confidentiality? Professional competence? Professional behavior? and professional skepticism? are they required by companies and are they considered ethical requirements? and how do they fit into what you mentioned before?

ChatGPT said:

ChatGPT

Searched 6 sites

Yes, companies do consider objectivity, confidentiality, professional competence, professional behavior, and professional skepticism as key ethical requirements for employees and managers. These principles are often part of ethical frameworks used in sectors like accounting, law, and finance, as they help uphold integrity, reliability, and stakeholder trust. Here’s how these principles fit into an ethical framework:

1. Objectivity: Companies require objectivity to ensure decisions are unbiased and free from personal interest, which is crucial in roles involving judgment and reporting, like auditing. Objectivity helps maintain trust by providing impartial information and aligns with ethical leadership's goals to act in the organization's and stakeholders' best interests. The International Ethics Standards Board for Accountants (IESBA) Code of Ethics highlights objectivity as essential to avoid conflicts of interest and maintain impartial judgment in professional settings.
2. Confidentiality: Confidentiality is critical for protecting sensitive information, preventing unauthorized disclosures, and building trust with clients and stakeholders. Ethical guidelines like those from IESBA and the Association of Chartered Certified Accountants (ACCA) consider confidentiality a fundamental ethical requirement, especially in professions where handling private data is frequent. Maintaining confidentiality demonstrates respect and integrity, aligning with broader principles like accountability and respect.
3. Professional Competence: Professional competence, often included in codes of ethics, involves possessing and maintaining the necessary skills and knowledge to perform tasks effectively. Companies emphasize ongoing development to ensure employees stay updated on industry standards, reducing errors and enhancing credibility. Ethical competence aligns with principles like accountability and diligence, as seen in frameworks such as the ACCA Code, which encourages continuous improvement to meet the evolving demands of the profession.
4. Professional Behavior: Professional behavior encompasses respect, integrity, and adherence to industry standards, reflecting an organization's values and reputation. This principle is seen across various ethical guidelines, underscoring the importance of appropriate conduct within and outside the workplace. Ethical behavior is fundamental to fostering a positive workplace culture, as supported by research on ethical leadership and workplace ethics, which shows that mutual respect and professionalism boost morale and productivity.
5. Professional Skepticism: Primarily emphasized in auditing and financial reporting, professional skepticism involves questioning and critically assessing information to detect inaccuracies or fraud. This approach aligns with principles of integrity and accountability, as it encourages thorough examination to prevent potential misstatements or unethical practices. Skepticism is highlighted in IESBA’s ethical standards to ensure due diligence and protect the public interest.

These principles not only promote ethical conduct but also help companies establish a culture of trust, integrity, and accountability, ensuring compliance and safeguarding their reputations in the long term

Harvard Business School Online

ACCA Global

IFAC

About IESBA | Ethics Board