This lesson explores the philosophical foundations of ethics and how to apply them to complex dilemmas in financial services.

2.1 What is Business Ethics?
Ethics is a system of moral principles that guide right and wrong behaviour . Kaplan Professional’s curriculum explores three major approaches :

  • Consequentialist (Utilitarianism): The ethical choice produces the greatest good for the greatest number.

  • Deontological (Duty-based ethics): Ethics are based on rules and duties, regardless of consequences.

  • Virtue Ethics (Aristotelian): Focuses on the character of the individual and what a virtuous person would do.

2.2 Sources of Cognitive and Decision Bias
Individual cognitive biases and sources of judgement and decision bias influence decision-making and conduct of both professionals and clients . Key biases include:

  • Groupthink: The tendency for groups to make faulty decisions due to group pressures .

  • Overconfidence: Overestimating one’s own abilities or the accuracy of one’s beliefs.

  • Confirmation Bias: Seeking information that confirms pre-existing beliefs.

2.3 Ethical Decision-Making Models
Students apply ethical decision-making frameworks to resolve ethical dilemmas . The “Five C’s” or CPRA model is used in regulatory and compliance contexts. Ethical decision-making models help professionals:

  1. Identify the ethical issue

  2. Gather relevant facts

  3. Evaluate alternative actions using ethical theories

  4. Make a decision and test it

  5. Act and reflect on the outcome 

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