Economic conditions — including the cost-of-living crisis, high energy prices and hot inflation — were rated as the No. 1 ethical risk factor by UK business leaders in 2024, according to a survey by the Institute of Business Ethics.
Cybersecurity, data protection and fraud were also among the top-rated ethical risks in the organization’s survey, which garnered responses from 1,051 UK business leaders.
“While fraud is an ongoing challenge for many organizations, tough economic conditions put greater pressures on organizations and individuals, giving rise to unethical behaviors like financial crime,” said Ian Peters, the institute’s director.
Key findings include:
- Economic conditions are the highest-ranked risk factor based on aggregate scoring and can be seen to drive many of the other risks, including fraud, theft, improper spending of company money (including expenses) and false accounting and reporting.
- The retail sector and small and medium-sized businesses ranked concern for vulnerable customers and fair treatment of customers highly.
- Fair pay and employment conditions were in ninth place. Remuneration and reward ranked 25th on the list. A 2023 survey the organization did showed that the British public is consistently concerned about pay, especially executive pay. Business leaders are at risk of being out of touch on this issue.
- Climate-related risks and use of artificial intelligence ranked lower than public debate might have suggested.
