Dempster: We need to set the ethical bar higher
Most general counsel (GCs) at large UK companies have said that ethical and moral concerns “regularly” come into conflict with “profit motivations”.
More than eight out of 10 believe that ‘doing the right thing’ comes secondary to profit “too frequently” in business decision-making.
“Legal professionals play a significant role in shaping ethical decision-making across business,” said the report from national law firm Freeths, which acted for the subpostmasters in the group claim against the Post Office.
“At times, this could be difficult or uncomfortable – for example, refusing to ‘rubberstamp’ questionable tactics – yet the onus is on us to do the right thing, every time.
“The corporate conscience may be forever under a magnifying glass, but as long as the legal community continues to stand up for what’s right, we can begin to work towards a more ethical future.”
Freeths gathered responses from 250 general counsel and chief legal officers in UK organisations with revenues of over £100m, a fifth of them in the public sector, for the Corporate Conscience Index 2025.
When asked how frequently profit motivations came into conflict with ethical and moral concerns at their organisation, 22% said very regularly, 32% regularly and 37% sometimes.
More than 80% believed that ethics in business decision-making was “more important than ever” and ‘doing the right thing’ came secondary to profit in business decision-making “too frequently”. A similar proportion had declined business “due to ethical concerns”.
Three out of 10 GCs reported making exceptions to corporate governance standards “if a financial impact is expected”.
While a third of GCs approached ethics as a “compliance exercise”, 38% said they went “beyond what is required” when it came to ethical best practice.
The survey found GCs generally comfortable around flagging ethical concerns, while 8% of respondents consulting with senior leaders about ethical considerations on a daily basis, 32% weekly and a further 32% monthly.
“We can infer that ethical issues are being discussed, but for some organisations, they could be higher on the agenda.”
While almost nine out of 10 organisations had a formal ethical decision-making framework in place, 38% said it needed updating.
Researchers warned: “For busy legal and leadership teams, navigating complex ethical issues without a solid foundation could be a recipe for disaster.”
Researchers said that beyond “new and evolving regulatory requirements stemming from the UK government”, large organisations had to “contend with global political shifts – and the catastrophic fallout they trigger”.
The Trump administration had been “forthright in criticising what it considers to be the ‘woke agenda’”, particular on equality, diversity and inclusion (EDI) and the environment. Some 28% said this had led to “wholesale changes or abandonment” of their company’s current stances.
Philippa Dempster, senior partner at Freeths, commented: “The lesson is clear: legal tactics, business strategy, and professional influence must always deliver advantage with fairness. That is the standard to which we should all be held.
“For the legal profession in particular, the responsibility is clear: we must use our position to set the ethical bar higher and keep it there.”
Really insightful read it’s true that profit and ethics often clash more than we admit. Businesses need to strike a better balance between the two. Also found this useful for anyone comparing healthcare costs.