We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.

solar-shaped window

Ethical Decision Making

For investment professionals

Identify. Consider. Act. Reflect.

These steps form the foundation of the ethical decision-making framework we developed to guide investment professionals as they resolve ethical dilemmas in the best interests of their clients.

Using case studies to illustrate real-world situations, we've designed the online ethics course and live webinars to help you apply this framework with confidence.

The ethical decision-making framework

Download your guide to the framework (PDF)

Read the article: "Can Investment Management Ethics Be Taught?" (PDF)

How to Apply the Ethical Decision-Making Framework

Ethical Decision-Making Program

This online course, which is hosted in the CFA Institute Ethics Learning Lab, helps you navigate ethical situations using the Ethical Decision-Making Framework. You'll be presented with real-world scenarios and case studies in an online platform that allows you to interact with your peers and study at your own pace.
PL credit: 1.5 (SER credit: 1.5)

Learn more

Ethics in Practice Cases

Test your ethical decision-making skills with short cases based on real-world scenarios. Download the Ethics in Practice casebook for personal use, in the classroom, or at your Society.

About the Ethical Decision-Making Framework

We developed this Identify-Consider-Act-Reflect framework for ethical decision making to help investment professionals like you analyze and evaluate ethical scenarios where there is not a clear "right" and "wrong" path.

This framework is not a linear checklist, but a summary of the key elements of making ethical decisions. Although you will likely encounter unique influences, conflicts, and actions beyond those detailed below, this framework can help you make ethical decisions in common day-to-day situations.

  1. Identify

    Ethical principles: Which fundamental investment professional principles (fair dealing, full disclosure, loyalty, diligence, etc.) are at issue?

    Duties to others: To whom do you owe a duty? Your client, employer, colleagues, others? Some duties, such as protecting the integrity of the capital markets, may be more important than others.

    Important facts: What facts do you know and what additional information do you need to make an informed decision?

    Conflicts of interest: Are there any encumbrances, relationships, or incentives influencing your actions?

  2. Consider

    Situational Influences: Are outside pressures (such as conforming to the group or obeying authority) or internal biases (such as overconfidence) affecting your decision?

    Alternative Actions: Have you brainstormed multiple solutions and avoided a particular preconceived path?

    Additional Guidance: Have you sought the independent, objective assessment of other people to gain additional perspective?

  3. Act

    Make a decision: The specific action required depends on the individual aspects of the situation. Your decision may require multiple actions or steps, or none at all.

    Elevate the issue to a higher authority: Alternatively, the best course of action may be to elevate your concerns to a more appropriate person. You may need to follow up with the other person to ensure appropriate action was taken.

  4. Reflect

    What did you learn?: After you take action, review the path you chose. The lessons you learn will help you reach ethical decisions more quickly in the future.

    Know your strengths and weaknesses: Regardless of the consequences your decisions and actions bring, understanding your strengths and weaknesses will help you make ethical decisions in the future.

Share on Facebook Share on Weibo Share on Twitter Share on LinkedIn