In today’s volatile and uncertain geopolitical environment, understanding what it means to ‘do the right thing’ in business, and recognising the role leaders must play in achieving this, is more important than ever.

Executives and their businesses are under increasing scrutiny to show ethical and moral accountability from the media, customers, partners, and employees. They must clearly define how they are navigating complex ethical issues such as supply chain visibility and environmental sustainability, how they are adhering to ever evolving legislation, and ultimately create places of work which are inclusive for all.

Simultaneously, business leaders are under immense pressure to drive growth and ensure business profitability, building value for shareholders, and creating environments that ensure secure employment and growth opportunities for staff.

Navigating these often-competing imperatives is no easy task. And the challenge has been exacerbated by a changing geopolitical environment, where the ‘watering down’ of moral responsibility has become more commonplace. Business leaders today must walk this increasingly complex path, charting a course that supports both healthy growth whilst also meeting high ethical and moral standards.

The ethical state of play

If UK business leaders are to promote high ethical standards in decision making, it’s first helpful to understand how other businesses are operating. As the law firm that represented the 555 sub-postmaster clients in the landmark High Court case against the Post Office, we felt Freeths was well placed investigate the state of good ethical practice across UK PLC.

Our recent Corporate Consciousness Index study set out to do just this, providing a comprehensive overview of UK businesses’ perspectives on ethics and the big challenges of the day, through the eyes of corporate lawyers.

Thankfully, the research painted an optimistic picture of business practice today. Legal leaders told us that most (88%) of their businesses have ethical decision-making frameworks in place, and that they are leant on regularly by business leaders to keep abreast of new ethical policies and requirements. It also found that businesses were actively working on a range of ethical and moral topics, including EDI, environmental sustainability, and supply chain visibility.

While most businesses reported generally good practice, the study did uncover some worrying signs. Namely, that good ethical practices are under threat by the temptation to put profit above principle and that, without care and attention, the progress made in many areas could be eroded by external influences.

Profit trumps ethics

While the report highlighted good ethical intent, it also highlighted emerging risks that could undermine progress, with the biggest prevailing force here being the broader geopolitical environment. Most notably, the changing attitudes to diversity and the environment perpetuated by the new US administration, which is creating conditions where previously accepted good business practice can be challenged, diluted and—at worst—abandoned altogether.

Most strikingly, over half (54%) of legal counsels said the US administration’s stance had led to changes to ethical policies and practices, with over a quarter having made specific changes and 28% making wholesale changes or abandoning initiatives, from EDI to the environment. A large proportion (83%) of those interviewed also said ‘doing the right thing’ now comes secondary to profit in business decision-making.

Naturally, these are worrying statistics. And while businesses need to be profitable to be successful, the findings paint a picture of businesses relaxing societal responsibilities to put profit ahead of principle.

Doing right for business

Eroding moral and ethical standards is not just a concern for society, it directly threatens business performance. According to the 2025 Edelman Trust Barometer, 80% of people trust the brands they use to do what is right, surpassing trust in business, media, government and NGOs.

When organisations compromise on ethics, customers leave, employees disengage and reputations suffer. Short-term gains are quickly outweighed by long-term costs to trust and loyalty.

Now is the time for UK business leaders to act decisively. There is a real opportunity to build on progress already made and position the UK as a global leader in ethical business. With 80% of respondents agreeing that ethics in business are more important than ever, it’s clear the intent and willingness to do the right thing is still very much there.

Business leaders must maintain this focus, resisting external pressures and global uncertainties and ensuring that principles continue to guide decisions. By combining ethical practice with strong commercial strategy, the UK can lead in doing well and doing good, driving growth for UK PLC while setting a standard for responsible business globally.

Philippa Dempster is senior partner at law firm Freeths.