Ethical Decision Making: More Needed Than Good Intentions

Abstract

The flourishing field of behavioral finance indicates that people often do not engage in optimal decision making when investing. The same cognitive biases and mental heuristics that cause suboptimal investing may also cause people to make unethical decisions. For that reason, good intentions are necessary, but they are not sufficient for finance professionals who desire to act ethically. Insights presented in this article can assist the well-intentioned to do the right thing in difficult circumstances.

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