Legal Definitions - ethical

Ethical refers to actions, decisions, or principles that conform to accepted standards of moral conduct, particularly those governing a profession or the obligations individuals owe to one another. It describes behavior that is considered morally right, fair, and responsible, often guided by a sense of duty or integrity.

• Example 1: A software company discovers a security vulnerability in its popular application shortly after a major update. While fixing it immediately would be costly and delay other projects, the company's leadership decides to prioritize patching the vulnerability and notifying users promptly.

  Explanation: This demonstrates an ethical decision because the company prioritizes its users' security and trust over its immediate financial or project timeline concerns, fulfilling a moral obligation to protect its customers.

• Example 2: A financial advisor learns that a particular investment product, while legal, carries unusually high fees that would significantly erode a client's long-term savings, even though the advisor would earn a higher commission from recommending it. The advisor instead recommends a lower-fee, more suitable alternative.

  Explanation: This action is ethical because the advisor places the client's financial well-being and best interests above their own potential earnings, adhering to professional standards of fiduciary duty and honesty.

• Example 3: During a job interview, a candidate is asked about their previous employer's proprietary business strategies. Despite knowing the information could impress the interviewers, the candidate politely declines to share details, citing a non-disclosure agreement and professional confidentiality.

  Explanation: This illustrates ethical conduct because the candidate upholds their prior contractual obligations and professional integrity, demonstrating respect for confidentiality even when it might not serve their immediate personal gain.