Can the Four PLUS filters assist with solving an ethical dilemma?
Can the Four PLUS model filters assist with solving an ethical dilemma?
Introduction
Thanks to those who provided positive feedback on my recent post on ethics titled, “My word is my bond” – why ethics matter in Financial Services, posted on 11 September 2025.
Wanting to dig a little deeper into ethical dilemmas, based on the feedback from my readers, I followed up with research relating to tools available to assist solve ethical issues and came across The PLUS Ethical Decision-Making Model (‘The PLUS Model’) from the Ethics and Compliance Initiative (‘ECI’).
About ECI
ECI is a US-based best practice international community of ethics and compliance professionals and academics who share techniques, research and ideas to advance high ethical standards and practices in public and private institutions.
ECI helps organisations identify and prioritise the practices that will improve their ethics and compliance program’s effectiveness, and seeks to increase organisational cultural strength. Founded in 1922, ECI combines the legacy of the industry’s founding organisations - the Ethics Resource Centre and the Ethics & Compliance Officer Association.
About the ECI PLUS Model filters
Ethical decision-making models (‘EDM’) are suggested by ethics experts as a way to drive ethical behaviour. EDMs provide a process by which organisational decision making is linked to addressing ethical issues and/or ethical constraints. These EDMs can provide tools and mapping as to how one can seek to make an ethical decision. The PLUS Model is an example of an EDM.
The PLUS Model integrates a standard ethical dilemma decision-making process with four ‘PLUS’ filters. This assists boards and executive teams to assess the ethical alternatives of the dilemma and to seek to ensure ethical considerations are thoroughly evaluated before a decision is made.
The Four PLUS filters are policies, legal, universal and self:
Policies - Is the alternative to address the dilemma consistent with my organisation’s policies, procedures and guidelines?
Legal - Is the alternative acceptable under the relevant applicable ASIC, Commonwealth and State laws and regulations?
Universal - Does the alternative conform to the universal principles/values that my organisation has adopted?
Self - Does the alternative satisfy my personal definition of right, good and fair?
The Seven-Step PLUS Model
The following seven steps provide the framework to properly consider the ethical dilemma.
The Four PLUS filters are applied at steps 4 and 5 below, to test the alternative resolutions to be considered to solve or address the ethical dilemma:
Define the problem: Clearly understand the ethical issue or dilemma presented.
Seek assistance: Consult relevant sources for guidance, for example governance experts, and gather other relevant technical support or subject matter experts (if required), to understand the problem fully.
Identify alternatives: Consider all possible solutions or courses of action to tackle the dilemma.
Evaluate alternatives: Apply the Four PLUS filters to each alternative identified.
Make the decision: Choose the alternative that best withstands the PLUS evaluation.
Implement the decision: Carry out the chosen alternative.
Evaluate the decision: Assess the outcome of the decision and reflect on the process.
The PLUS Model framework has been designed to help formulate a course of action that is ideally in line with both the individual’s and the organisation’s values, as well as being within the law, and the relevant organisational policies and procedures.
Although the decision-making process cannot guarantee that the actual decision will be in line with all these parameters, the framework ensures that the relevant parameters have at least been identified and considered as part of the overall decision making process.
Key Directors' Duties under the Corporations Act 2001
By using the four PLUS Filters across the Seven-step PLUS Model, Australian company directors can discharge two of their major directors’ duties under the Corporations Act in their consideration and overall decision making process relating to an ethical dilemma:
Duty of care and diligence (s 180): Directors must exercise their powers and discharge their duties with the degree of care and diligence that a reasonable person would exercise if he or she were a director in the company's circumstances and had the same responsibilities of that director. For example, directors must stay informed about the company's business, including material ethical dilemmas, monitor its affairs, and have an informed opinion of its financial status.
Duty to act in good faith in the best interests of the corporation and for a proper purpose (s 181): Directors must exercise their powers and discharge their duties in good faith in the best interests of the corporation, and for a proper purpose. For example, directors must exercise their powers and duties with honesty and for the benefit of the company, not for their personal or sectional interests.
Conclusion
I believe that ethics are the foundation of a properly functioning society and a trustworthy financial services industry. Using EDMs can assist organisations to consider and address ethical issues and assist directors to meet their directors’ duties under the Corporations Act.
If you would like to discuss how I can assist your company with ethically enhancing your governance frameworks, or by introducing frameworks to assist with navigating ethical dilemmas, so that you can better protect your company, customers or investors, please contact me for an initial discussion. I can assist your company with:
Advisory board services;
Responsible manager positions;
Compliance committee;
Company director;
Compliance review; and
Governance committee services.
I look forward to the opportunity of working with you.
https://www.andrewsmcneil.com/
https://www.yarmouthgroup.com/