2024 Ethical Business Landscape

US Corporate Transparency Act was introduced at the start of the year, and recently paused when a federal court in Texas issued a nationwide preliminary injunction against its enforcement on the basis that it may exceed Congress’s constitutional powers. This ruling pauses CTA’s mandates, which were set to take effect on January 1, 2025.

The UK’s Economic Crime & Corporate Transparency Act (ECCTA) receives attention as it moves into implementation. Passed in October 2023, it introduced a “failure to prevent fraud” offence and revised corporate liability standards.

The Post Office Scandal was spotlit at the start of the year by the TV drama, Mr Bates v The Post Office, and the subsequent public enquiry. It was catapulted to the front and centre of public consciousness and was discussed as an ethics lesson on multiple fronts, for tech adoption, for governance, for lawyers.

The roll back from climate and other green targets this year (e.g. by Unilever, Bank of America and Shell, as well as by governments in Scotland and Germany) begged questions to do with goal setting, green washing and the global imperative to cut emissions.

Boeing is spotlit for decades of ethical failure, with erosion of its corporate culture and prioritisation of profit over safety.

The Labour government introduces new rules on lobbying, to prevent ‘revolving door’ culture between politics and business.

The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) was adopted in July 2024, requiring European companies - and those with significant turnover in the EU - to identify and prevent possible human rights abuses. It remains to be seen whether Donald Trump will seek to exempt US companies.

Politicisation of ESG and ‘anti-wokery’ becomes more polarised in the US in the run up to the Presidential election, with more debates on language and impact – and whether or not sustainability, for instance, is extreme or common sense. 

Discussions over need for US Supreme Court to have an Ethical Code of Conduct.

TD Bank’s $4bn penalty for Banking Secrecy Act violations puts an ethical spotlight on bribery and corruption in the financial sector.

The EU’s Budapest Declaration sought to simplify CSRD, CSDDD and EU Taxonomy to reduce reporting burden on companies and enhance competitiveness.

India’s Adani Group says it lost $55 billion in value since US prosecutor accused its founder and other officials of fraud.

UK Digital Ethics Summit messages on need to operationalise and standardise ethical approaches to AI

Senator Warren argues that Trump needs to hold Elon Musk to strong conflict of interest rules and ensure he recuses himself from federal related work that may also impact his commercial interests.