T10

Question 1

Ethicsplosion

Answer 1

A term referring to the growing attention on ethics across various professions, including management consulting, highlighting the importance of ethical behavior in client-consultant relationships.

Question 2

Professional Ethical Rules

Answer 2

General ethical guidelines established by professional associations for consultants, which require interpretation and operationalization in practice.

Question 3

Ethical Dilemmas

Answer 3

Situations where consultants face conflicting moral choices, often requiring them to balance professional responsibilities with personal and organizational interests.

Question 4

Why is uncertainty a significant challenge in consulting?

Answer 4

Consulting is characterized by uncertainties in demand, market choices, and transactional relationships, making ethical decision-making crucial for consultants operating in opaque contexts.

Question 5

How can ethics serve as a brand name for consulting firms?

Answer 5

Firms that prioritize ethical behavior can use it as a differentiator, building trust with clients and establishing a reputation for integrity in an industry where transparency is often lacking.

Question 6

Dual Ethics

Answer 6

The shared ethical responsibilities between both consultants and clients in the consulting relationship, ensuring that both parties contribute to maintaining ethical standards.

Question 7

How do power dynamics in consulting impact ethics?

Answer 7

The client-consultant relationship often involves technical superiority on the consultant’s side, making ethical behavior essential to prevent abuse of power and ensure mutual respect.

Question 8

What ethical dilemma arises from balancing profit with the best solution in consulting?

Answer 8

Consultants must balance their firm’s revenue goals with providing the best possible solution to the client, avoiding actions that prioritize income over client success.

Question 9

What is the ethical issue when a client’s budget doesn’t match the consultant’s recommended approach?

Answer 9

Consultants face an ethical dilemma when a client’s budget is insufficient for the optimal solution. The challenge is to adjust the approach without compromising quality.

Question 10

What tension exists between a consultant’s professional effort and the client’s interests?

Answer 10

Consultants may focus on showcasing their expertise, sometimes neglecting the specific needs of the client, raising ethical concerns about whose interests are being prioritized.

Question 11

How does confidentiality create ethical challenges for consultants?

Answer 11

Consultants must respect confidentiality agreements, but excessive confidentiality can hinder their ability to provide effective solutions, creating an ethical dilemma between discretion and practicality.

Question 12

What ethical issue arises from consultants becoming too close to a client?

Answer 12

Consultants risk losing objectivity and impartiality if they become too involved with a client, yet maintaining distance can prevent the development of trust and deep insights.

Question 13

Why might consultants face an ethical dilemma regarding sharing full knowledge?

Answer 13

Sharing all information with a client may not always be appropriate, and consultants must balance transparency with discretion to avoid overwhelming or misinforming the client.

Question 14

Ethical Individualization

Answer 14

The devolution of responsibility for ethical decision-making from organizations to individual employees, often leaving them vulnerable to conflicts of interest without institutional support.

Question 15

Ontological Insecurity

Answer 15

A state of anxiety and uncertainty experienced by employees when institutional guidance and support are insufficient, leaving individuals to navigate ethical dilemmas on their own.

Question 16

Institutional Conflicts

Answer 16

Ethical challenges that arise from structural issues within industries or organizations, often beyond the control of individual consultants and requiring systemic solutions.

Question 17

What conflict exists between audit and consultancy functions in firms?

Answer 17

There is a potential ethical conflict when audit firms cross-sell consultancy services to their audit clients, raising concerns about impartiality and conflict of interest.

Question 18

Codes of Ethics

Answer 18

Formal guidelines designed to outline ethical practices within consulting firms, though often placing the burden of ethical decision-making on individual consultants rather than the firm.

Question 19

Ethical Volunteering

Answer 19

Programs where consultants engage in ethical or charitable work, often framed as a way to demonstrate the firm’s ethical commitment while providing a form of individual ethical satisfaction.

Question 20

Why is professionalization limited in the consulting industry?

Answer 20

Only a small percentage of consultants are formally certified, and the lack of enforceable professional standards limits the impact of professionalization on ethical practices.

Question 21

Why does ethical individualization fail to address systemic issues in consulting?

Answer 21

Individual responsibility cannot solve broader institutional conflicts, as many ethical challenges arise from organizational structures and industry-level governance, beyond individual control.

Question 22

What are the consequences of placing ethical responsibility on individual consultants?

Answer 22

Consultants experience anxiety and insecurity, as they are held accountable for ethical dilemmas without adequate institutional support or clear guidance.

Question 23

Ethical Decision-Making

Answer 23

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles, often complicated in consulting due to institutional pressures.

Question 24

Governance in Consulting

Answer 24

The systems and processes used to oversee and regulate the ethical practices of consultants, often focusing on procurement and professionalization.

Question 25

Procurement Practices

Answer 25

The process by which public sector clients select and hire external consultants, often focused on cost-efficiency but criticized for not ensuring value for the public good.

Question 26

Consultocracy

Answer 26

A term used to describe the influence of consultants on public sector decision-making, raising concerns about transparency, accountability, and the role of consultants in shaping policy.

Question 27

How can procurement practices be strengthened to improve governance in consulting?

Answer 27

Strengthening procurement through stricter enforcement, hybrid approaches, and greater transparency can reduce reliance on specific firms and increase accountability.

Question 28

Why has professionalization been ineffective in consulting?

Answer 28

Professionalization efforts lack enforceable standards and are met with resistance from both consultants and clients, limiting their impact on ethical practices.

Question 29

Balanced Scorecard Systems

Answer 29

A performance management system that includes metrics beyond financial targets, incorporating factors such as ethics and social responsibility into consultant evaluations.

Question 30

Risk-Related Fees

Answer 30

A payment structure that ties consultant compensation to the outcomes of their advice, incentivizing long-term value and ethical behavior rather than short-term profit.

Question 31

Opportunistic Consultants

Answer 31

Consultants who prioritize profit over ethical considerations, often using Corporate Social Responsibility (CSR) as a marketing tool rather than a genuine commitment to social impact.

Question 32

Purpose-Driven Consulting

Answer 32

A consulting approach that emphasizes ethical values and social responsibility, aiming to create positive societal impacts alongside financial success.

Question 33

Speaking Truth to Power

Answer 33

A concept encouraging consultants and clients to challenge each other openly and honestly, addressing ethical issues and root causes rather than perpetuating superficial solutions.

Question 34

Public–Public Partnerships

Answer 34

Collaborations between public sector organizations, proposed as an alternative to private consulting firms to enhance accountability and transparency in public governance.

Question 35

Third-Party Oversight

Answer 35

The introduction of independent bodies or external actors to monitor and review consulting projects, ensuring greater accountability and challenging unethical practices.

Question 36

How do current reward structures in consulting contribute to unethical behavior?

Answer 36

Consulting firms prioritize sales and client retention, incentivizing consultants to engage in opportunistic behavior to secure repeat business, sometimes at the expense of ethical standards.

Question 37

Transparency Platforms

Answer 37

Online platforms that provide public access to information about consulting engagements, promoting transparency and enabling scrutiny of consulting practices.

Question 38

Consultant Reluctance

Answer 38

The hesitation consultants feel about challenging clients or declining projects, often due to the financial and reputational pressures associated with sales-driven reward systems.

Question 39

Client Complicity

Answer 39

The role that clients play in maintaining the status quo by avoiding scrutiny and encouraging consultants to provide agreeable, rather than challenging, advice.

Question 40

Why is institutional-level reform necessary to address ethical issues in consulting?

Answer 40

Many ethical problems in consulting are rooted in institutional conflicts of interest, and individual efforts alone cannot address these systemic issues without broader organizational and industry-level changes.

Question 41

What is the concept of dual ethics in consulting?

Answer 41

Dual ethics refers to the shared ethical responsibility between consultants and clients. Both parties are expected to uphold ethical standards and contribute to the success and integrity of the consulting engagement.

Question 42

What is open consulting?

Answer 42

Open consulting is an approach that promotes transparency, collaboration, and shared decision-making between consultants and clients, fostering mutual trust and reducing information asymmetry during the consulting process.