Navigating the Ethical Maze: Setting Clear Boundaries in an Ambiguous World

When I think about where we stand today as internal audit, risk, and compliance professionals, I’m reminded of a conversation I had recently with a close colleague. Considering the significant changes in the world over the past few years—the fragmentation of truth, the complexity of decisions, and the frequent blurring of moral boundaries—this is a reality we confidently confront daily in our work.

As professionals, we are the ethical compasses of our organizations, entrusted with responsibilities that go far beyond compliance checklists. But in a world where disinformation spreads faster than facts, AI challenges our notions of truth, and ethical lapses can ripple across cultures, how do we draw—and maintain—clear ethical boundaries?

Here’s my perspective: it starts with staying grounded in our principles, equipping ourselves with the right tools, and embracing our role as ethical leaders. Let’s unpack what that looks like in practice.

The Ethical Challenges That Define 2025

Ethics today isn’t what it was even five years ago. In my 20+ years in this field, I’ve never seen a time when ethical dilemmas were as nuanced and pervasive. Misinformation, AI-generated deepfakes, algorithmic biases, and geopolitical instability are just a few of today’s challenges.

A young man with a digital mask of green binary code on half his face symbolizes deepfake technology.

Take, for example, a friend of mine who works for a Canadian-based company. They’re grappling with a unique ethical dilemma: operating in the U.S., where regulatory rollbacks and the end of DEI initiatives directly conflict with Canada’s stricter standards. It’s not just about following the rules—it’s about navigating the gray areas where cultural, legal, and ethical boundaries intersect.

These aren’t just hypothetical challenges—they’re real, and they’re happening now. For us as internal auditors and risk professionals, these situations test our ability to remain objective, uphold integrity, and advise our organizations with clarity and confidence.

Building Ethical Resilience: Lessons from the Field

One of the most important lessons I’ve learned over the years is that ethical resilience—the ability to stand firm in your principles under pressure—is the foundation for navigating these challenges. But resilience doesn’t happen by accident. It’s something we need to cultivate intentionally.

I remember working with a Chief Audit Executive who faced immense pressure to downplay findings that implicated a senior executive in unethical behavior. It would’ve been easier—and career-saving—to comply. But instead, they stood firm, documented their concerns, and escalated the issue appropriately. That decision didn’t just protect the organization; it set the tone for a culture where ethics and accountability were non-negotiable.

So, how do we build that kind of resilience in our teams and ourselves? Here are a few strategies that have worked for me:

1. Recognize Subtle Forms of Influence: Ethical dilemmas don’t always present as clear-cut decisions. Sometimes, they’re framed as “business necessities” or “one-time exceptions.” Being prepared with mental scripts for these scenarios can help you respond with confidence and professionalism.

   
   

2. Frame Ethics in Business Terms: I’ve found that connecting ethical decisions to business outcomes—like reputational risk or financial impact—resonates more with executives than moral arguments alone. For example, discussing the cost of a data breach caused by poor ethical practices often drives the point home.

   
   

3. Foster Psychological Safety: If your team doesn’t feel safe raising ethical concerns, they won’t. Encouraging open dialogue, even about uncomfortable topics, is one of the most powerful ways to prevent ethical lapses before they escalate.

   
   

4. Leverage Technology for Ethical Auditing: Tools like AI-powered analytics and blockchain can help us detect unethical behaviors early and create transparent, immutable records of key decisions. But it’s not just about adopting technology—it’s about using it thoughtfully and ethically.

The Power of Ethical Literacy

One example that inspires me is Finland’s approach to combating misinformation. They’ve made media literacy a core part of their education system, teaching students to discern facts from spin starting in grade school. The result? A population that’s highly attuned to ethical issues and trusts its institutions.

As internal auditors, we can apply this concept of ethical literacy to our organizations. It starts with helping stakeholders recognize when they’re facing ethical dilemmas versus purely operational challenges. For instance, a data breach isn’t just a technical failure—it’s a question of transparency, accountability, and duty of care. By building this kind of awareness, we can create organizations that don’t just react to ethical challenges but anticipate and address them proactively.

A Call to Action for Ethical Leadership

As we navigate 2025 and beyond, I want to leave you with three commitments to consider:

1. Commit to Continuous Education: Stay informed about emerging ethical challenges like AI, misinformation, and geopolitical risks. Share this knowledge with your teams to foster a culture of awareness and accountability.

   
   

2. Leverage Technology Thoughtfully: Use tools like AI and blockchain not just to mitigate risks but to enhance transparency and trust across your organization.

   
   

3. Lead by Example: The most powerful way to influence an ethical culture is to model it yourself. This means making tough calls when necessary and showing your teams that integrity is non-negotiable.

   
   

I’ll end with this: ethics isn’t just about avoiding wrongdoing. It’s about creating trust, driving innovation, and building resilient organizations. And as the ethical compasses of our workplaces, we have the power to make that vision a reality.

What steps will you take today to strengthen the ethical foundations of your organization?