Consulting Ethics Challenges

Where’s the lead sentence of my March 28, 2023 Blog, Consulting Ethics Concern Once Again , “Lack of consulting ethics once again.  It doesn’t have to be but here are my thoughts.”  I went on to describe some recent consulting ethics lapses and proposed fixes.

Now, out of Australia comes another set of examples, these are being pointed out in a governmental hearing: Consultancy industry unrequlated, unaccountable, committee hears in Governmental News by Judy Skatsasoon.  The article starts, “Representatives of the Institute Management Consultants of Australia were giving evidence to the Senate’s Finance and Public Administration References Committee on ‘integrity of consulting services used by [Australian] federal agencies.”  The hearing comes after accusations of ethical lapses, including a ‘deepening scandal surrounding PwC’s leaking of confidential tax information.’  Other ethical lapses were mentioned in the hearing included loss-leading projects (to get a ‘foot-in-the-door) and one in which PwC was paid $1 million for a six-page Power Point presentation presented to three people.

The National President of IMC Australia, Peter Westlund CMC® testified and amplified that IMC Australia’s role is “to promote excellence and integrity and encourage high proffessional [sic] standards and ethics.” He validated that the IMC has no enforcement capacity, further stating that he believed none of the big four consultancies have anybody registered with the IMC [emphasis added].

All this playing out in the public arena in Australia is distressing to me but totally not unexpected.  Earlier blogs (listen to a podcast and read a couple blogs on ethics in consulting here and here) pointed out similar issues in both the US and Canada. 

Simply put, it doesn’t have to be this way.

Peter Westlund CMC® showed a path to avoid these ethical traps through professionalism. In his words;
“It is the combination of expertise, altruism, and ethical behavior that are the hallmarks of professionalism and a profession. To be altruistic is to be orientated towards service rather than profit. As professionals, management consultants ought to be disciplined individuals who adhere to ethical standards in the design and delivery of their services.” He continues, “Management consultants who are members of the IMC can legitimately and steadfastly claim to be professionals, especially those individuals who are practicing Certified Management Consultants®.” Westlund proposes three courses of action (for Australia): IMC proposes: (1) “that management consultants providing management consulting services … adopt ISO 20700”; (2) “that [the Australian Government] give considerable weight to members of the IMC who commit to the [enforceable] Code of Ethics,” and (3) a CMC® is recognized as being the most trusted and expert advisor and consultant and is ascribed the highest weighting when calling for and considering tenders to supply management consulting services.”

 Disclosure, I am a member of and a National Board member of the Institute of Management Consultants USA, one of 49 constituent members of CMC-GI, which includes IMC Australia.

Subsequent updates include PwC suspending nine partners and are undertaking in internal review.  PwC’s global officers will seize long-term oversight on its Australian business.

Excerpted from Statement by the Institute of Management Consultants (Australia) to the Finance and Public Administration References Committee on management and assurance of integrity by consulting services shared by Peter Westlund, CMC®, and used herein with his permission.

Note: Westlund is presenting to and talking about management consulting within Australia.  IMC Australia is one of 48 constituent countries, including IMC USA, forming CMC-Global.  What he is proposing can be and should be applied within the U.S. as well.

Here’s the way I see it -- consulting is a profession and those individuals who practice within the industry can do some relatively easy things to ‘up-their-game’ and clearly, distinctively, differentiate themselves and their practice as professional.  I wrote about them before (see Reputational Damage):

1. Seek out and join your country’s Institute of Management Consultants (in the US at IMC USA);

2. Adopt and adhere to the institute’s enforceable Code of Ethics and Code of Conduct;

3. Works towards earning the CMC® (Certified Management Consultant®) designation, the Gold Standard of Ethics and Professionalism in Consulting;

4. Attach and reference our enforceable Code of Ethics to your proposals;

5. Get training in ISO 20700, the international standard for management consulting;

6. And, be proud of your contribution to improving the reputation of management consulting.

These, and other, examples of ethical lapses do not have to dominate the press.  Join me in changing the public perception, please.