E‐thics: the new moral methodology for business

Purpose – The purpose of this paper is to describe a new methodology called E‐thics, how it can be applied to an investment company, and how it can be used as a catalyst to develop an ethical corporate culture. Design/methodology/approach – Discusses recent events that have led the general public to expect improved corporate behaviour; what compels companies toward ethical behaviour; recent legislation designed to prevent the harm caused by corruption, greed, and fraud; how ethics are turned into E‐thics; and the apparatus, promise, and limitations of E‐thics. Findings – E‐thics applies policy‐based review and control to electronic communication. It acts like a virtual conscience, sitting on the edge of all your computer screens. An effective E‐thics system should detect all messages that contain breaches of ethics and also should educate the sender about the nature of the breach and other corrective instructions. E‐thics requires the full participation of everyone in the firm, not just lip service. Its greatest value may be that it will act as a catalyst for the evolution of a corporate culture based on shared ethical values, fairness, responsibility, and stewardship. E‐thics can help the investment community move from a culture of compliance to one of true ethics. Originality/value – While recommending a system to screen potential harmful electronic messages, an explanation is also given as to how such a system can fit into a broader effort to develop an ethical corporate culture.