If You See Something, Say Something
Professionalism Counts, May 2024
The results of two recent business ethics surveys make for disheartening reading. The 2023 Global Business Ethics Survey (GBES) found that pressure to compromise workplace standards and the law hit exceedingly high levels during the pandemic that have yet to recede, and that workplace misconduct is at an all-time high. In the U.S., 53 percent of respondents said that they had observed misconduct-defined as at least one act that they deemed to be a violation of their organization’s standards or the law.[1]
Gallup reports that Americans rated nearly all the 23 professions in its 2023 Honesty and Ethics poll lower than in recent years. Of the professions listed, nurses ranked most highly, with 78 percent of respondents rating the honesty and ethical standards of nurses as very high or high. “Actuary” was not one of the professions listed, but for the two most closely related professions listed, bankers and business executives, only 19 and 12 percent of respondents, respectively, rated their honesty and ethical standards as high or very high.[2]
One bright spot, according to GBES, is that the reporting of observed misconduct is at a record high: “A good sign of a strong ethical business is the reporting of misconduct, as it keeps teams and employees accountable.”
What does all this have to do with actuaries? As we know, credentialed actuaries in the U.S. must abide by standards of conduct, qualifications, and practice. But we also know that actuaries do not work in a vacuum. Like other employees, they are at times subject to pressure to take unethical actions that may contravene company policies and perhaps even the law. But unlike most employees, actuaries can point to standards they have to meet-or risk losing their credentials and membership status while causing significant reputational harm to the actuarial profession.
Actuarial professionalism standards require actuaries to report potential violations of the profession’s standards. Precept 13 of the Code of Professional Conduct states:
An Actuary with knowledge of an apparent, unresolved, material violation of the Code by another Actuary should consider discussing the situation with the other Actuary and attempt to resolve the apparent violation. If such discussion is not attempted or is not successful, the Actuary shall disclose such violation to the appropriate counseling and discipline body of the profession, except where the disclosure would be contrary to Law or would divulge Confidential Information.
The idea behind Precept 13 is that actuaries are in a better position than anyone else to know whether another actuary has potentially violated one of the profession’s standards. Precept 13 underlines the expectation that actuaries will meet the standards-and be held to task when they do not. It therefore helps to keep the profession honest and worthy of the public’s trust-which is essential to maintaining self-regulation.
If you know of an actuary who may have violated the profession’s standards, the Code encourages you to bring up your concerns with that actuary. During such a conversation, you may discover information that erases your concern, or the other actuary may realize they’ve made a mistake and correct their work. If, at any point, you or the other actuary would like a confidential sounding board or advice on how to handle the matter, you can contact the Actuarial Board for Counseling and Discipline (ABCD) with a request for guidance. In scenarios where you do not attempt a conversation, or your concerns remain even after talking to the other actuary, you must report the potential violation to the ABCD.
Speaking up when you see something wrong reinforces an ethical culture in your workplace and profession. Shining a light on potential problems allows them to be identified and corrected. When standards are upheld, and transgressors punished, ethical cultures are strengthened.
Actuaries are fortunate to have an ethical framework that supports them and requires them to adhere to standards. Do your part by meeting the standards yourself and reporting possible violations when you see them. It’s true what they say about one bad apple spoiling the barrel. Professionalism is the means to prevent that from happening and we all play a part.
If you see something, say something.
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[1] Just behind Japan at 40% and Canada at 52%; Kenya came in last with 85%; 2023 Global Business Ethics Survey.
[2] “Ethics Ratings of Nearly All Professions Down in U.S.“; Gallup; 2023