What Are Ethics?

At a Glance:

• Ethics Reflect Values: Ethics are rules shaped by the values we hold dear, transforming abstract ideals into practical guidelines.
• Timeless Principles: The values that shaped ancient ethical codes remain relevant in modern leadership and business. We don’t need new jargon to pursue values we hold dear like justice and opportunity for all.
• Ethics Yield Results: Ethical conduct fosters trust, fairness, and accountability, driving both social progress and business success.

“If a man commits murder, that man must be killed. If a man commits robbery, he must pay ten shekels of silver.” – King Ur-Nammu of Ur

Dear Colleague,

Sometime between 2100 and 2050 BC, a Sumerian king named Ur-Nammu began writing one of the earliest attempts to formalize ethics. Predating the famous Code of Hammurabi, his writings reflect an effort to build a structured framework for social conduct. Why did King Ur-Nammu take on this task? Because, in the absence of clear ethics, we expose ourselves to the unchecked extremes of human behavior like theft, murder, and all the things Joseph Conrad describes in his book, The Heart of Darkness.

Ur-Nammu’s code offered rules meant to uphold values such as honesty, fairness, and justice. By outlawing murder and theft, he wasn’t just enacting rules; he was attempting to shape a society grounded in respect for life and property. King Ur wanted to stop murder, so he advocated severe punishment for those who committed such acts.? He wanted to stop robbery, so he advocated recompense by those who committed such acts.

And this is where values intersect ethics. The world we want to live in reflects our values. How we get there—reflects our ethics. The two are linked but distinct concepts that we must wrestle with as leaders more today than we have in a long time.

Values Precede Ethics

Values are the beliefs that define what individuals, organizations, or societies hold most important—whether it’s honesty, fairness, compassion, or loyalty. They provide the why behind ethical standards, as the early Summerians taught us. For instance, a company valuing sustainability will establish ethical guidelines like reducing waste or choosing eco-friendly suppliers. Without clear values, ethical standards risk becoming arbitrary.

Imagine the above Summerian ethic regarding punishment for robbery but without connection to the pre-requisite value of respect for the property of others. The ethic transforms into an abstract tax rather than a specific punishment designed to achieve an outcome, namely, the reduction of theft.

Modern values aren’t so different.

• A team that holds integrity as a core value will establish business ethics that emphasize honesty and transparency in all dealings. This value informs ethical policies such as clear communication with customers, the sourcing of materials, and fair treatment of employees.
• A company that values environmental stewardship might incorporate ethics that emphasize sustainability, such as minimizing waste, reducing carbon emissions, and investing in renewable resources. This value shapes ethical decisions about how products are made and how the business impacts the environment.
• A leader who values justice will adhere to ethics that prioritize due process and conflict resolution.

Ethics require action to make values tangible. Without the active application of ethical principles, even the most well-defined values risk becoming inert ideals, disconnected from the realities of daily life. This is where leadership plays a crucial role—bridging the gap between aspiration and implementation. By translating values into behaviors and decisions, leaders breathe life into ethical frameworks, ensuring they guide not just intentions but outcomes.

The Transformation Step????

What good are rules that reflect values if no one is there to give them life?

That is where you and I enter the picture.

Just as ethics transform abstract ideals into actionable rules and behaviors that guide decision-making, so too do ethical leaders transform aspirational ethics into outcomes.

For years, I struggled with the evolving language and novel nomenclature we used in the modern workplace to address what are now political notions about fairness and merit. And then the COVID pandemic brought an epiphany. ?Language already exists, and has existed since the Bronze Age, for the values we seek to bring to our work and society at large.

Return to Ethics

Consider again our Summerian ancestors, and their attempts to construct early ethics. Ur-Nammu’s rule against theft implicates a few values:

1. Honesty: the rule opposes deceit or taking something that doesn’t belong to you.
2. Respect: it acknowledges the rights of individuals to own and protect what they have earned or created.
3. Fairness: it ensures that people are treated equitably and not taken advantage of.
4. Trust: it reinforces societal trust, as theft erodes the sense of security and mutual respect needed for communities to thrive.

When viewed this way, the values don’t seem so Summerian, but rather modern. In fact, they read as if they were written into some corporate policy book from a company in the 21st century. Why? Because values are timeless.

• An organization valuing belonging will create ethics centered on non-discrimination.
• A business unit valuing teamwork will implement ethics promoting fair play, shared goals, and mutual respect among teammates.
• A healthcare provider valuing compassion will develop ethics emphasizing patient-centered care and ensuring dignity and respect in every interaction.

Today, more than ever, leaders must return to ethics and values as a framework for principled, purposeful actions.

Ethics is Good Business

In 2020, the Ethisphere Institute published a report that indicates publicly traded companies recognized as the World's Most Ethical Companies outperformed the large-cap sector by 13.5% over five years.[1] This "Ethics Premium" established a correlation between ethical business practices and enhanced financial performance.

Take, for example, the value of respect for employee well-being. The report found a correlation between companies that formulate ethical rules around that value.

Nearly 9 out of 10 ethical companies recognized in 2020 had established employee mental health wellness program.

Here’s the Optimism.

We don’t need new jargon to inspire principled leadership; we can return to ethics as a framework for action, rooted in universal values.

Leaders who embrace ethical conduct navigate complexity with clarity, creating environments where trust and accountability flourish. Whether combating workplace inequities, fostering sustainable practices, or prioritizing employee well-being, ethical leadership is the tool of our time for progress.

Steps to Take This Week:

1. Reflect on Values: Identify one core value that drives your leadership. Consider how this value shapes your decisions and interactions. For instance, if you value fairness, evaluate how equitably you’re distributing responsibilities among your team. What about in hiring and promotion?
2. Audit for Alignment: Choose one policy or practice in your organization and assess its alignment with your stated values. If gaps exist, take a small, actionable step to better reflect those values—whether revising a policy or fostering a discussion about ethical priorities.
3. Engage in Dialogue: Organize a brief team discussion about ethics and values. Encourage team members to share examples of how ethics guide their work and invite ideas on embedding values more deeply into day-to-day operations.

With unwavering belief in your leadership journey,

Go Deeper Later…?

[1] Ethisphere Institute. 2020 World's Most Ethical Companies Executive Summary. Ethisphere Magazine, 2020, https://magazine.ethisphere.com/wp-content/uploads/S2020-web.pdf.

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Andrew Cooper is a husband, dad, brother, son, author of the bestselling book The Ethical Imperative, and life-long student of human behavior and leadership. In his spare time, he is a board director, patent inventor, technology attorney, keynote speaker, and lecturer.