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Page 1: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)
Page 2: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

2

Table of Contents

• Introduction3

• Executive summary4

• Background and framework10

• Governance Institute Ethics Index 201916

• Ethical behaviour by sector20

• Issues and influences37

• Areas of ethical consideration47

• Appendix53

Page 3: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

3

Ethics and ethical behaviour continue to be very important across all sectors of Australian society. Media coverage of controversial

and ethically charged events abounds with debate occurring at the individual, organisational and government level.

The Ethics Index, now in its fourth year, enables us to quantify the Australian adult population’s perception of the overall

importance of ethics and what the actual level of ethical behaviour is within Australian society. The difference between these is

termed the ‘ethical expectation deficit’.

With these benchmarks, we can objectively gauge whether our ethical behaviour and expectation have slipped or improved across

the four surveys.

So, how does 2019 compare to previous Ethics Index results? In short, the overall answer is slightly up on last year with a score of

37 (see slide 17), (on the ethical index scale this means that Australian society as a whole is operating at a ‘somewhat ethical’ level).

This result is a slight increase on the 2018 ethical index score of 35, but it is less than that of 2017 when an ethical index score of 41

was reported.

This study contains considerable detail of different sectors, organisations, occupations, issues and influences, inviting meaningful

comparison between the various components, and consequently, an evaluation of performances. The insights lead the reader to

start asking questions that warrant additional detailed investigation.

We trust that readers will find the research is a good starting point and provides a powerful benchmark to encourage further deep,

objective discussions.

This research has been conceived, designed and commissioned by C3 Content Pty Ltd, conducted by Ipsos and sponsored by

Governance Institute of Australia. This research is Copyright 2019 of C3 Content Pty Limited and cannot be reproduced whole or in

part without the written permission of the owner.

Introduction

Page 4: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

4

The concept of ethics and how it has touched everyday Australians

Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A

large majority (86%) rate ethics as important or very important to a well-functioning society. This is consistent with the 2018 Ethics Index

findings. When a particular ethical scenario was posed, the majority (60%) chose to take the selfless option and safeguard the life of a

child over their own.

Just over half of Australians (54%) have faced a personal ethical dilemma, with family matters rated the most difficult to deal with (39%),

followed by work-related matters (30%), other personal, non-family matters rated at 30% difficult. Financial matters were rated the least

difficult (23%). Just over one in four (27%) would change the decisions they had made in those situations, claiming that hindsight allowed

them to see it was the wrong decision (40%) or that they didn’t have enough information at the time to make an informed decision (29%).

Governance Institute Ethics Index 2019 scores

Overall, Australians continue to consider that Australian society is ‘somewhat ethical‘, with an Ethics Index score of 37, while the ‘overall

importance of ethics index’ is scored at a much higher 82, representing ‘very ethical. This suggests that there is a shortfall in actual

ethical performance (or perception thereof) of some sectors that may be contributing to the ethical deficit — or as we term it the ‘Ethics

expectation deficit’.

While Australian society is seen to be ‘somewhat ethical' at the aggregate level, with an Ethics Index score of 37, across generations

there are differences. Millennials have the lowest ‘ethics expectation deficit’, while Baby Boomers have the highest ‘ethics expectation

deficit’.

The Ethics Index increased slightly in 2019, from 35 to 37. The education, health and charity/not-for-profit (NFP) sectors are perceived as

‘very ethical’. Although they remain as the top scoring sectors, their net scores compared to 2018 were slightly lower. The media,

corporate and banking, and finance and insurance sectors continue to rate the same, with a perception of ‘neither ethical or unethical’.

Similarly, the aged care sector is also perceived as ‘neither ethical or unethical’.

Executive summary (1 of 6)

Page 5: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

5

Ethical behaviour by sector

The study first asks respondents to rate the importance of ethical behaviour of different sectors, as well as rating how ethical they actually

are. Health, education, charities and NFP sectors have the smallest gap between the importance of ethical behaviour and their actual ethical

behaviour scores. In contrast, banking, finance and insurance, media, large corporations and government sectors have the largest gap

between the importance of ethics and how ethical they are perceived to be.

While ethical behaviour is considered important across all sectors, it is most important among health, public service, education and

government. Charities and NFP, banking, finance and insurance and large corporations follow closely behind. In terms of ethical scores,

social sectors (health, education, charities and NFP organisations) continue to have high ethical scores (68% and above), which is in line with

their ethics indices.

Conversely, in 2019 the financial sector continued to have the lowest ethical rating (31%) and the highest unethical rating (49%) indicating

very low trust and perceived behavioural standards.

Respondents were then asked to rate nominated occupations and organisations within each sector.

The education sector continues to hold the highest perceived level of ethical behaviour of all the sectors, with every occupation and

organisation performing at the ‘somewhat ethical’ or ‘very ethical’ level. Primary school teachers continue to have the highest net score.

Ethical behaviour in health sector occupations continues to be perceived as ethical (all above 60%), with the exception of funeral directors,

who dropped from 45% to 36% (net score). For organisations in the sector, pathology services and hospitals continue to be perceived as

ethical, at or above 60%. Opinions on natural health companies, health funds and pharmaceutical companies generally polarise with regards

to the proportion of who consider them ethical versus unethical.

Within the charity and NFP sectors, medical charities and social welfare charities continue to be held in high ethical regard (71% ethical

score). Perceptions of ethical behaviour in RSL/Ex-services clubs and amateur sports clubs also continue to be perceived positively (60%

and above ethical score).

Executive summary (2 of 6)

Page 6: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

6

Ethical behaviour by sector (cont’d)

Ambulance and fire services are rated as the most ethical occupations within the public sector (above 80% ethical score). In contrast,

state and federal politicians continue to be seen as unethical by one in two Australians, the lowest among the occupations. The net ethics

score of state politicians and local council public servants have improved compared to 2018. CSIRO, defence and border forces are rated

as the most ethical organisations within the public sector, (60% or above ethical score). The net ethics score of local councils and shires,

federal and state parliaments has improved since 2018.

Choice, included for the first time in 2019, is seen as the most ethical organisation in the member associations sector. The Australian

Medical Association, National Farmers Federation, Engineers Australia and Certified Practising Accountant Australia follow with ethical

scores of 60% and above. Albeit the Australian Medical Association saw a decrease in its net ethics score (from 62% to 54%). Other

associations that saw an uplift in their net scores this year include HSU, Australian Hotels Association, Business Council of Australia,

AWU, MWU and CFMMEU.

Australians continue to rate the ABC as the most ethical media platform (62% ethical score). Social media platforms, Facebook, Twitter

and Instagram have the lowest ethical scores within the sector (less than 30% ethical score). Perceptions of Facebook, magazines and

journalists have improved compared to 2018.

Within the aged care sector, workers have the highest ethical score of 54%. Aged care organisations are polarising with 36% rating them

as ethical versus 38% as unethical. 42% of Australians perceive aged-care directors, executive and management to be unethical.

Occupations in the corporate sector scored fairly neutral. Consistent with results in 2018, company secretaries scored the highest in

ethical behaviour and directors of foreign companies scored the lowest. Between 30-38% of Australians scored these occupations as

neither unethical nor ethical. Directors of foreign companies continue to have the worst unethical score (45%) aligning with the poor result

seen for the companies they work for with a 43% unethical score.

Executive summary (3 of 6)

Page 7: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

7

Ethical behaviour by sector (cont’d)

Within key business sectors, real estate agents continue to have the lowest ethical score (25%), and the highest unethical score (46%).

Lawyers are perceived as slightly more ethical (36%). By industry, there is high regard for farmers and agricultural businesses who are

perceived as the most ethical (63%). In second place are cafes and restaurants (60% ethical score). Telecommunication companies continue to

be seen as the least ethical among the industries (37% unethical score).

The banking, finance and insurance sector continues to have the lowest Ethics Index score of all sectors. Within the sector, accountants

scored the highest in ethical behaviour (50% ethical score). Industry super funds remains as the most ethical among organisations in the sector.

Pay-day lenders have improved their net score ratings compared to 2018, albeit still seen as unethical by 60% of Australians respectively; while

the net score rating for independent super funds has increased compared to 2018.

Issues and influences

Accountability (61%) continues to be the top element of importance to ensure ethical conduct in society, with no change compared to 2018. This

is followed by transparency (57%), whistle-blower protection (50%), and highly ethical leaders (49%).

The top ethical issues in business continue to follow the same order. Corruption remains in the top position (62%), followed by company tax

avoidance (51%), misleading and deceptive advertising (48%), and executive pay (45%). Environmental responsibility and human rights are

mentioned more often in 2019 (from 36% to 44% and 27% to 32% respectively).

Executive summary (4 of 6)

Page 8: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

8

Issues and influences (cont’d)

Those who work within organisations at the most senior level continue to be seen as having the most influence on the overall ethical

practices and outcomes, with the CEO and board of directors unsurprisingly seen as the most influential (70%+ ‘strong influence‘). With regard

to external influence, government, laws and regulations remain most influential (65% ‘strong influence’). Net scores have decreased for the top

five roles compared to 2018.

Less than one in five Australians expect ‘total improvement’ in ethical behaviour by boards and executives across various institutions to

actually occur.

The top ethically important issues within the banking and finance sector continues to be executive salaries (51%). Bribery and corruption

issues remain in second place (50%), while insufficient regulation rank third (49%) in ethical importance. This is followed by executive bonuses

(48%), lack of government action (48%) and treatment of customers (47%).

For Australians, the more the CEO is paid, the more unethical they think it is. The majority of Australians (74%) perceive that it is unethical if

the CEO of a company with up to 5,000 employees is paid $3 million per annum (i.e. 35 x the average Australian’s yearly income). A similar

situation is seen for the CEO of a company with up to 15,000 employees, with 72% of Australians perceiving it to be unethical.

Nine in ten Australians want the Federal government to take action on climate change and a similar number say organisations must also take

action, even if it impacts profits and job losses. The majority of Australians (60%+) believe that the federal and state governments, international

bodies and multi-national corporations have an urgent ethical obligation to take action on climate change. At least one in two Australians

believe that individuals, local councils and Australian businesses also have an urgent ethical obligation to take on climate change. A similar

proportion (90%) also believe there is an obligation for Australia to fully transition to renewable energy.

Artificial intelligence (AI) based traffic management and public surveillance are seen as the most ethical uses of AI systems (40%+ ethical),

while AI-based social scoring of citizens is seen as the least ethical (60% unethical). Other issues seen as unethical by the majority of

Australians include AI-based hiring using private and public data, AI-based autonomous lethal weapons, and AI systems created in ways that

cannot be understood (all scoring 50%+ unethical).

Executive summary (5 of 6)

Page 9: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

9

Areas of ethical consideration

Almost one in two (49%) of Australians continue to feel that immigration is the most difficult area to navigate ethically, with euthanasia

in second place on 39% (down from 47% in 2018). In 2019, climate change has risen to third position, moving from 23% to 37%.

Australians continue to be most concerned ethically with future developments that involve humans interfering with nature’s natural

course. Examples of this include embryo experimentation, gene manipulation for medical treatments and artificial intelligence (40%+ for

ethical difficulty). In addition, Australians are concerned with the ethics of self-driving cars (43% ethical difficulty). Fewer Australians in

2019 are concerned by the use of big data to target consumers (-16 to -6 net score).

Overall, the ethical behaviour of people we are in personal contact with has remained mostly consistent with 2018, with the

exception of banks, which has improved its net score. Healthcare professionals with whom Australians have had personal contact are

perceived as most ethical (70%+ ethical score). The ethical net scores of local members of state parliament and elected local councillors

have also improved in 2019.

For ethical behaviour in particular situations, the majority of Australians rated each of the situations as more unethical than ethical,

eliciting strong responses for the collection of data by social media companies (64% unethical), ‘win at all costs’ approach to sport (65%

unethical) and not correcting a restaurant bill when it doesn’t include an ordered item (68% unethical).

Executive summary (6 of 6)

Page 10: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Background and framework

10

Page 11: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement, except Voting Preference)

* The National Party is not shown if respondents are from QLD, NT

50% 50%

FemaleMale

18-25 yrs

16%26-35 yrs

22%36-45 yrs

22%46-55 yrs

22%56-65 yrs

18%

Sydney

21%Adelaide

6%

Other SA

2% Other NSW

11%

Other QLD

10%

(Other WA/NT/TAS/ACT)

7%

Brisbane

10%

Melbourne

19%

Perth 8%

Other VIC

6%

11

BackgroundThe Ethics Index 2019 survey was conducted online across a broad spectrum of Australians (to nationally representative age,

gender and location quotas by ABS census data) between 9-21 October 2019.

29%

25%

2%

13%

5%

7%

20%The Labor Party

The Liberal Party

The National Party*

The Greens

One Nation

Some other party or candidate

Don't know/ Refused

Gender

Age Voting preference

Location

Page 12: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement, except Voting Preference)

* The National Party is not shown if respondents are from QLD, NT

Student

14%Working

55%Home duties

10%Retired

8%Not employed

10%

Single

38%

Couple or single

parent with

children under 18

25%

Couple or single

parent with

children over 18

8%

Couple or single

parent with

children both over

and under 18

5%

Couple

with no

children

22%

High school year 10/11 12%

HSC 13%

Trade certificate or

diploma

26%

Some university or

currently studying

undergraduate

7%

Bachelors university

degree

28%

Post graduate degree 10%

Other tertiary 3%

Other 1%

12

Other

3%

Less than $25,000 per year 12%

$25,000-$39,999 per year 15%

$40,000-$79,999 per year 27%

$80,000-$119,999 per year 21%

$120,000-$149,999 per year 12%

Over $150,000 per year 13%

Background

Household income

Education

Household status

Work status

The Ethics Index 2019 survey was conducted online across a broad spectrum of Australians (to nationally representative age,

gender and location quotas by ABS census data) between 9-21 October 2019.

Page 13: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Net

Score

2018

10

15

20

10

15

10

30

30

40

20

20

20

30

20

11

Ethical

(Net)Unethical

(Net)

Net

Score

2019

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Statement 1

Statement 2

Statement 3

20

30

30

50 30 10

40 10 15

30 0 30

5-point scale where 1 = Very unethical and 5 = Very ethical

13

Where figures do not sum

to 100, this is due to the

effects of rounding

Q: Question text

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

How to read the results(Ethics Index: 80)

Question text and Total number of

respondents who answered the question

Colour of text dependent

on ethics index score

Net score = Ethical net (4 + 5 on scale)

minus Unethical net (1 + 2 on scale)

Statements, occupations,

organisations, displayed by

descending order of score or rank

Figures are in % and are

ranked in descending

order by net score

Indicates a significant increase from 2018

net balance @95% confidence level

Indicates a significant decrease from

2018 net balance @95% confidence level

Chart heading (%)

Page 14: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Well-founded standards of right and wrong that

prescribes what humans ought to do, usually in

terms of rights, obligations, benefits to society,

fairness, or specific virtues (Markkula Centre for

Applied Ethics)

41%

Moral principles that govern a person’s behaviour

or the conducting of an activity (Oxford Dictionary) 41%

A set of concepts and principles that guide us in

determining what behaviour helps or harms

sentient creatures (The Thinkers Guide to Ethical

Reasoning, published 2006)

14%

None of the above 4%

Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%) rate ethics as important or very important to a well-functioning society, consistent with 2018. When an ethical scenario was posed, the majority (60%) chose to take the selfless option, and safeguard the life of a child over their own.

QS6: There are many definitions of ethics. Below are several current definitions that may be found. Which of the below most closely matches your

definition of ethics? / QG2: Following is an ethical dilemma scenarios which we would like you to review and consider…what is your opinion on how to

driverless car should react? / QE1: How would you rate the importance of ethics to well-functioning society?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Ethics in general

7 1 7 33 53

Important

(Net)

Unimportant

(Net)

7

Net Score

2019

86 79 78

The car should have been

programmed at the factory…

The occupant should be required

to set their preferences before

using the car…

…The occupant would be killed

…The child would be hit

21%

25%

…Chosen to protect the occupant 15%

39%…Chosen to protect the child

Very Unimportant Unimportant Neutral Important Very Important

You are travelling along a single lane mountain road in a new driverless car that is fast

approaching a narrow tunnel. Just before entering the tunnel, a child attempts to run

across the road but trips in the centre of the lane, effectively blocking the entrance to the

tunnel. The car has only two options: to either hit and unfortunately kill the child, or to

swerve into the wall on either side of the tunnel, thus unfortunately killing you.'

Importance of

ethics

14

(44%)

(41%)

(13%)

(2%)

Net Score

2018

(21%)

(26%)

(16%)

(37%)

(**%) data in 2018

Understanding of ethics Ethical scenario

Ethics in society

Page 15: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

40

29

17

10

4

Hindsight allows me to see it was the wrong

decision

I did not have enough information at that point in

time to make an informed decision

My personal beliefs/ values have changed

Society’s beliefs/ values have changed

Other

QP1: Have you had any personal experiences in which you have faced an ethical dilemma?/ QP2:Thinking of the most recent ethical dilemma you have

faced, in which area did it fall, and how difficult was the dilemma?/ QP3:Having faced that dilemma and made a decision, would you now change your

original decision? /QP4: What is the main reason you would change your decision?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Personal ethics

54% said that they had faced an

ethical dilemma personally

10

11

10

17

13

19

21

22

29

30

30

26

19

17

17

15

7

5

5

4

27% said that they would now

change their original decision

Having faced that dilemma and made a

decision…

Difficult (Net) Easy

(Net)

Net Score

2019

Financial

Personal (non-family) matters/

relationships

Work related

Family matters/ relationships

Extremely difficult Very difficult Somewhat difficult Not difficult Very easy

23

30

30

39

26

22

22

19

2

-8

-8

-20

15

Just over half of Australians (54%) have faced an ethical dilemma personally, with family matters being the most difficult to deal with (39% difficult), followed by work related matters (30% difficult) and other personal, non family, matters (30% difficult). Financial matters were rated the least difficult of their experiences (23% difficult). Just over one in four (27%) would change the decisions they had made in those situations, claiming that hindsight allowed them to see it was the wrong decision (40%) or they didn’t have enough information at the time to make an informed decision (29%).

52% (2018)

29% (2018)

Net Score

2018

2018

43

20

24

12

1

1

-8

-12

-15

Incidence of personal ethical dilemma Nature and difficulty of dilemma (%)

Reason for changing decision (%)

Page 16: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance Institute Ethics Index 2019

Weighted index calculation

16

Page 17: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Base: Australians 18-65, Ethics Index Oct 2016-2019

Ethics Index 2019(Overall Ethics Index: 37)

Overall, Australians continue to consider that Australian society is 'Somewhat Ethical' (with an Ethics Index score of 37) while the overall

Importance of Ethics Index is scored at a much higher 82 (representing 'Very Ethical’). 2019’s results are most similar to results seen in

2018.

100

80

60

40

20

0

-20

-40

-60

-80

-100

Overall Importance of

Ethics (82)

Ethics Expectation

Deficit (-45)

2019

17

Ethics Index 2019

(37)

2018

Overall Importance of

Ethics (80)

Ethics Expectation

Deficit (-45)

Ethics Index 2018

(35)

Overall Importance of

Ethics (75)

Ethics Expectation

Deficit (-34)

2017

Ethics Index 2017

(41)

2016

Overall Importance of

Ethics (74)

Ethics Expectation

Deficit (-35)

Ethics Index 2016

(39)

Page 18: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

TotalMillennials

(18-35 year olds)Gen X

(36-50 year olds)Baby Boomers

(51-65 year olds)100

80

60

40

20

0

-20

-40

-60

-80

-100

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000)

Ver

y Et

hic

alSo

mew

hat

Et

hic

al

Nei

ther

Eth

ical

or

Un

eth

ical

Som

ewh

at

Un

eth

ical

Ver

y U

net

hic

al

Overall Importance of Ethics (82)

Ethics Index 2019 (37)

Ethics Expectation Deficit (-45)

While Australian society is seen to be 'Somewhat Ethical' at the aggregate level (with an Ethics Index score of 37), across the

generations it is evident there are some differences. Millennials have the lowest Ethics Expectation Deficit, while Baby Boomers have

the highest Ethics Expectation Deficit.

Overall Importance of Ethics (86)

Ethics Index 2019 (44)

Ethics Expectation Deficit (-42)

Overall Importance of Ethics (79)

Ethics Expectation Deficit (-44)

Overall Importance of Ethics (79)

Ethics Index 2019 (32)

Ethics Expectation Deficit (-47)

35 43 31 31Overall Ethics

Index 2018

18

Ethics Index 2019(Overall Ethics Index 2019: 37)

Ethics Index 2019 (35)

Page 19: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

7466 59

42 42

7 4-1

-11

Education Health Charities Public Service ProfessionalMembership Assoc.

Media Aged Care Corporate Banking

Overall Importance of Ethics (82)

Ethics Index 2019 (37)

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000)

The Ethics Index marginally increased in 2019 (from 35 to 37). The education and health sectors, although scoring lower compared to 2018, continue to be perceived as 'Very ethical’. The charities and NFO sector scored slightly lower in 2019, shifting this sector into the ‘Somewhat ethical’ cohort, alongside public service and government and professional membership associations. The media, corporate and banking, finance and insurance sectors continue to be perceived as 'Neither ethical or unethical’; so too, the aged-care sector in its debut year. The banking, finance and insurance sector continues to be the lowest scoring sector.

100

80

60

40

20

0

-20

-40

-60

-80

-10080 70 61 39 38 1 4 -9 -15

19

Ver

y Et

hic

alSo

mew

hat

Et

hic

al

Nei

ther

Eth

ical

or

Un

eth

ical

Som

ewh

at

Un

eth

ical

Ver

y U

net

hic

al

Ethics Index 2019(Overall Ethics Index 2019: 37)

Ethics Index 2018

Banking, Finance and

Insurance

Corporate Sector

Aged-CareProfessionalMembershipAssociations

Public Service & Govt

Charities and Not-For-Profit Organisations

(NFP)

Health (e.g. hospitals, medical

practitioners, pharma co’s)

Education Media

Page 20: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Ethical behaviour by sector

Unweighted scores/results

20

Page 21: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Health Education GovernmentPublic service

Banking, finance and insurance

Charities and NFP org.

Large corporations

Professional membership associations

Small to medium

enterprisesMedia

Trade or worker

associations

Similar to the Ethics Index, health, education, charities and NFP sectors have the smallest gap between the importance of ethical behaviour and their ethical behaviour scores. In contrast, banking, finance and insurance, media, large corporations and government sectors have the largest ethical gap.

Ethical expectation gap

21Base: Australians 18-65, Ethics Index Oct 2019 (n=1000)

88 87 8588

83 84 8279

8279 81

6761

-2

37

-18

56

-10

48

33

-14

18

-40%

-20%

0%

20%

40%

60%

80%

100%

21 26

87

51

101

28

92

31

49

93

63

Ethical importance(net score)

Ethical behaviour(net score)

Gap

Page 22: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QE1a: How would you rate the importance of ethical behaviour within each of the following broad sectors of society?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

3

3

3

3

3

3

3

3

3

3

4

1

1

1

1

1

1

2

2

2

2

3

5

5

6

6

7

8

10

8

9

12

9

16

28

22

17

25

21

35

28

30

26

27

76

63

69

72

63

67

51

59

56

57

58

Important

(Net)Unimportant

(Net)

Net Score

2019

Health

Public service

Education

Government

Charities and not-for-profit organisations

Banking, finance and insurance

Small to medium enterprises

Large corporations

Trade or worker associations

Professional membership associations

Media

3

3

3

5

4

4

4

5

5

4

6

92 88 89

91 88 85

90 87 87

89 85 85

88 84 83

87 83 84

86 82 81

87 82 81

86 81 78

84 79 81

85 79 79

While ethical behaviour is considered important across different sectors of society (above 80%), it is most important among health, public service and education sectors. Government, charities and not-for profit, banking, finance and insurance and large corporations sectors follow closely behind.

Importance of ethical behaviour of broad sectors

22

Very Unimportant Unimportant Neutral Important Very Important

Sectors (%)Net Score

2018

Page 23: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QE2: How would you rate the actual level of ethical behaviour within each of the following broad sectors of society?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

3

3

3

3

5

3

8

17

15

18

22

7

7

9

8

13

14

20

23

27

26

28

14

19

19

29

27

33

27

22

25

25

20

46

49

47

43

43

40

35

29

24

23

21

31

22

21

16

12

10

11

9

8

8

9

Ethical

(Net)Unethical

(Net)

Net Score

2019

Health

Education

Charities and not-for-profit

organisations

Professional membership associations

Public service

Small to medium enterprises

Trade or worker associations

Government

Large corporations

Media

Banking, finance and insurance

10

10

12

12

18

17

28

40

42

44

49

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

76 67 74

71 61 69

68 56 61

59 48 48

55 37 36

50 33 33

46 18 15

38 -2 -7

32 -10 -15

31 -14 -25

31 -18 -27

Social sectors (health, education, charities and not-for-profit organisations) continue to have high ethical scores, although net scores have significantly declined for health and education compared to 2018. The financial and media sectors continue to score the lowest on being Ethical in 2019, however, net scores for both these sectors have significantly improved compared to results seen in 2018.

Ethical behaviour of broad sectors

23

Net Score

2018Sectors (%)

Page 24: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

24QE8: Within the education sectors, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

2

3

4

4

5

7

18

19

20

44

48

47

31

26

22

Unethical

(Net)

6

8

11

75 69 76

74 66 71

69 58 64

2

2

1

3

4

5

4

6

6

11

12

16

21

23

25

23

27

28

49

51

47

44

41

38

24

19

21

19

16

13

6

8

7

15

16

21

73 67 71

70 62 66

68 61 62

63 48 51

57 41 47

51 30 32

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Primary school teachers

Secondary school teachers

Professors/university lecturers

Primary schools

Public secondary schools

TAFEs

Universities

Independent (private) secondary

schools

Privately-run colleges

The education sector continues to hold the highest perceived level of ethical behaviour of all the sectors, with every occupation and organisation performing at the Somewhat Ethical or Very Ethical level. In this sector, primary school teachers have the highest net score while privately-run colleges continue to have the lowest net score.

Education sector ethical behaviour(Ethics Index: 74)

Ethical

(Net)

Net Score

2019

Net Score

2018Occupations (%)

Organisations (%)

Page 25: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

1

1

2

2

3

3

4

3

4

5

4

6

5

13

14

17

17

20

22

24

30

35

43

43

40

42

47

35

47

35

34

34

28

22

18

2

3

5

9

11

14

4

7

12

23

24

23

23

21

24

31

28

25

42

44

41

27

28

26

29

25

19

10

9

12

25QE3: Within the health sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Health sector ethical behaviour

Unethical

(Net)

82 78 84

78 73 77

77 70 77

74 68 74

70 61 66

69 61 62

53 36 45

4

5

7

6

9

8

17

Nurses

GPs

Veterinarians

Pharmacists

Dentists

Ancillary service providers

Funeral directors

Pathology services specialists

Public hospitals

Private hospitals

Natural health companies

Health funds

Pharmaceutical companies

5

10

17

32

35

37

71 66 68

69 59 65

60 43 48

37 5 12

37 2 1

38 1 -10

(Ethics Index: 66)Ethical behaviour in health sector occupations continue to be perceived as ethical (all above 60%), with the exception being funeral directors. The net score for funeral directors has dropped further (from 45% to 36%). Net scores for nurses and veterinarians have also dropped in 2019. For organisations in the sector, pathology services and hospitals continue to be perceived as ethical (at or above 60%). Opinions on natural health companies, health funds and pharmaceutical companies generally polarise with regards to the proportion who consider them unethical versus ethical.

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Occupations (%)

Organisations (%)

Page 26: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

3

3

2

2

6

6

10

5

7

8

7

9

20

21

19

19

25

31

27

32

28

44

43

43

44

39

34

31

29

28

22

16

19

9

10

Medical charities (e.g. Cancer Council)

Social welfare charities (e.g. the Smith Family)

RSL/ Ex-services clubs

Amateur sports clubs

Indigenous charities

Professional Sports Clubs (e.g. NRL, AFL, FFA)

Unions

QE10: Within the charity and NFP sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Unethical

(Net)

8

10

10

9

15

26

31

73 65 68

71 61 67

65 55 54

60 51 52

58 43 39

42 16 13

41 10 7

26

Within the charity and not-for-profit sectors, medical charities and social welfare charities continue to be held in high ethical regard (above 70% ethical score). However, the net score for social welfare charities has dropped in 2019. Perceptions of ethical behaviour in RSL/Ex-services clubs and amateur sports clubs also continue to be perceived positively (60% and above ethical score).

Charity and NFP sectors ethical behaviour(Ethics Index: 59)

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Ethical

(Net)

Net Score

2019

Net Score

2018Organisations (%)

Page 27: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

1

2

3

3

6

6

8

9

9

17

25

19

1

3

7

10

8

11

14

17

18

28

27

33

12

13

23

19

23

20

33

31

31

28

23

24

30

34

39

43

39

35

36

34

34

19

19

18

56

49

27

26

24

23

9

10

8

8

6

6

Ambulance services

Fire services

Defence Force personnel

Police

Border Force personnel

Judges*

State public servants

Federal public servants

Local council public servants

Local politicians

Federal politicians

State politicians

QE9: Within the public service and government sectors, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Unethical

(Net)

2

4

10

13

14

17

22

26

27

45

52

52

85 83 88

83 78 85

67 57 62

68 55 59

63 49 49

58 41 -

45 24 18

43 18 16

42 15 1

27 -17 -22

25 -27 -38

24 -28 -34

27

Ambulance and fire services are rated as the most ethical occupations within the public sector (above 80% ethical score). In contrast, state and federal politicians continue to be seen as unethical by one in two Australians, the lowest among the occupations. The net ethics score of federal politicians and local council public servants have improved compared to 2018.

Public service and government sector ethical behaviour (1/2)(Ethics Index: 42)

Ethical

(Net)

Net Score

2019

Net Score

2018Occupations (%)

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

*Judges added in 2019.

Page 28: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

2

4

5

3

6

12

17

20

4

8

10

6

13

20

25

24

21

22

26

27

26

30

24

25

35

38

37

35

30

30

26

24

28

28

23

19

14

8

7

8

CSIRO*

Defence Force

Border Force

ACCC*

Financial sector regulators*

Local councils and shires

State Parliament

Federal Parliament

QE9: Within the public service and government sectors, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Unethical

(Net)

6

12

15

10

19

32

42

44

63 57 -

66 54 57

60 46 49

54 44 -

45 26 -

38 6 -6

34 -9 -23

32 -12 -23

28

CSIRO, defence and border forces are rated as the most ethical organisations within the public sector (60% or above ethical score). The net ethics score of local councils and shires, federal and state parliaments have improved since 2018.

Public service and government sector ethical behaviour (2/2)(Ethics Index: 42)

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

*Note new groups added in 2019

Organisations (%)

Page 29: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

3

5

3

4

3

2

5

7

5

6

6

7

7

6

12

9

9

13

7

8

7

6

11

10

11

13

16

12

14

12

18

19

19

21

22

21

24

21

28

30

27

31

32

27

25

32

27

29

28

36

25

27

34

27

38

38

42

45

42

41

34

36

37

38

40

38

36

29

33

33

26

28

28

29

20

16

18

15

18

17

17

13

12

13

11

10

12

10

9

10

QE11: Within the member associations sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Unethical

(Net)

Choice*

Australian Medical Association

National Farmers Federation

Engineers Australia

Certified Practising Accountant Australia

Institute of Chartered Accountants Australia and

New Zealand

Governance Institute of Australia

Health Services Union (HSU)

Law Society

Australian Hotels Association

Master Builders Australia

Business Council of Australia

Australian Institute of Company Directors

Financial Planning Association

Australian Workers’ Union (AWU)

Australian Manufacturing Workers’ Union (MWU)

Real Estate Institute

Construction Forestry Maritime Mining Energy Union

(CFMMEU)

10

12

11

10

13

12

16

19

21

18

21

19

25

25

31

30

31

35

66 55 -

67 54 62

62 51 49

60 50 54

60 46 44

57 45 44

51 35 32

53 34 13

54 33 37

50 32 24

52 32 34

51 32 24

47 22 9

39 14 18

44 13 3

43 13 3

35 4 4

38 4 -9

29

Choice, included for the first time in 2019, is seen as the most ethical organisation in the member associations sector. The Australian Medical Association, National Farmers Federation, Engineers Australia and Certified Practising Accountant Australia follow with ethical scores of 60% and above; albeit the Australian Medical Association saw a decrease in its net ethics score (from 62% to 54%). Other associations that saw an uplift in their net scores this year include HSU, Australian Hotels Association, Business Council of Australia, AWU, MWU and CFMMEU.

Member associations ethical behaviour(Ethics Index: 42)

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Organisations (%)

*Note new group added in 2019

Page 30: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

6

4

5

5

4

7

9

11

12

10

12

15

22

8

13

12

12

11

11

21

17

24

23

24

24

27

24

37

38

39

46

41

32

38

29

37

36

36

26

41

35

36

34

31

29

30

27

29

25

20

18

19

21

10

9

10

8

11

8

7

7

5

7

6

6

Unethical

(Net)

ABC channel

Free TV

Radio

Streaming services

(eg Netflix, Youtube)*

Podcasts*

LinkedIn

Newspaper

Pay TV (e.g. Foxtel)

Journalists

Magazine

Instagram**

Twitter

Facebook

62 48 46

45 28 23

45 27 24

44 27 -

39 24 -

40 21 13

38 7 7

34 6 5

36 0 -8

30 -3 -13

27 -10 -

24 -15 -22

25 -24 -33

QE12: Within the media sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

14

17

17

17

15

18

30

28

36

33

36

39

49

30

Australians continue to rate the ABC as the most ethical media platform (62% ethical score). Social media platforms, Facebook, Twitter and Instagram, have the lowest ethical scores within the sector (less than 30%). Perceptions of Facebook, magazines and journalists have improved compared to 2018.

Media sector ethical behaviour(Ethics Index: 7)

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Media platforms (%)

*Note new groups added in 2019. **Changed from online media (blogs, websites)

Page 31: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

31QE3a: Within the aged care sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

6

15

17

16

24

25

24

25

27

39

27

23

15

10

8

Unethical

(Net)

22

38

42

54 32

36 -2

31 -11

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Aged-care workers

Aged-care organisations

Aged-care Directors/

Executive management

Within the aged care sector, workers have the highest ethical score of 54%. Aged-care organisations are polarising with 36% rating them as ethical versus 38% as unethical. 42% of Australians perceive aged-care Directors/Executive management to be unethical..

Aged care sector ethical behaviour(Ethics Index: 4)

Ethical

(Net)

Net Score

2019Occupations (%)

*Aged-care sector added in 2019.

Page 32: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

7

7

15

14

19

27

36

39

34

36

29

19

7

6

4

32QE5: Within the corporate sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

6

10

10

11

10

11

17

15

21

23

22

24

23

28

38

35

32

32

34

34

30

33

27

27

28

26

25

19

8

8

8

7

6

6

5

Unethical

(Net)

41 20 18

35 5 -5

35 2 -10

35 2 2

32 -1 -6

31 -4 -9

25 -21 -19

21

30

33

33

33

35

45

21

26

43

43 23 15

35 9 6

23 -20 -22

Company Secretaries

Directors of Australian companies

Chief Executive Officers/ Managing

Directors

Chief Financial Officers

Chairmen of companies

Senior executives

Directors of foreign companies

operating in Australia

Australian listed public companies

Australian unlisted and private companies

Foreign companies operating in Australia

Occupations in the corporate sector scored fairly neutral. Consistent with results in 2018, company secretaries scored the highest in ethical behaviour and directors of foreign companies scored the lowest. Between 30-38% of Australians scored these occupations as neither unethical nor ethical. Directors of foreign companies continue to have the worst unethical score (45%), aligning with the poor result seen for the companies they work for (43% unethical score).

Corporate sector ethical behaviour(Ethics Index: -1)

Ethical

(Net)

Net Score

2019Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Occupations (%)

Organisations (%)

Page 33: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

3

1

3

4

5

7

12

12

12

7

7

11

17

19

22

22

23

25

27

31

38

38

37

34

31

29

30

44

48

39

34

31

30

27

28

25

19

12

8

8

7

7

8

8

7

33

Within key business sectors, real estate agents continue to have the lowest ethical score (25%), and the highest unethical score (46%). Lawyers are perceived as slightly more ethical (36%). By industry, there continues to be high regard for farmers and agricultural businesses who are perceived as the most ethical (63%). In second place are cafes and restaurants (60% ethical score). Telecommunication companies continue to be seen as the least ethical among the industries (37% unethical score).

QE6: Within the business sectors, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Business sector ethical behaviour

15

17

23

29

25

29

27

19

9

6

Unethical

(Net)

38

46

10

9

15

21

24

29

34

35

37

36 -2 -9

25 -21 -24

63 53 59

60 51 49

47 32 31

41 20 24

38 14 16

37 8 9

35 1 -1

36 1 -5

32 -5 -13

Farmers and agricultural businesses

Cafes and restaurants

Retailers

Manufacturing companies

Hotels, pubs and nightclubs

Construction companies

Resource companies

Energy and water companies

Telecommunication companies

Lawyers

Real estate agents

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Occupations (%)

Sectors (%)

Page 34: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

6

8

10

14

11

12

14

16

24

21

25

26

31

32

29

32

31

33

39

36

29

27

26

23

11

9

7

6

6

6

Accountants

Tax agents

Financial planners

Bank managers

Funds managers

Mortgage brokers

50 30 31

44 20 18

36 2 -5

34 -1 -4

33 -3 -7

29 -9 -12

34QE4: Within the banking, finance and insurance sector, how would you rate the level of ethical behaviour of each of the following groups?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Unethical

(Net)

20

24

35

35

36

38

Banking, finance and insurance sector ethical behaviour(Ethics Index: -11)

6

8

10

13

16

18

19

39

14

17

18

24

24

26

28

21

28

33

38

33

30

28

26

23

40

33

27

26

24

22

20

12

12

9

7

4

6

7

8

5

20

25

28

37

40

44

47

60

52 32 26

42 17 26

34 6 7

30 -7 -6

30 -10 -13

29 -15 -17

28 -19 -26

17 -43 -54

Industry super funds

Independent super funds

Stock exchange

Other insurance companies

Investment banks

Retail banks

Life insurance companies

Pay day lenders

The banking, finance and insurance sector continues to have the lowest Ethics Index score of all sectors. Within the sector, accountants scored the highest in ethical behaviour (50% ethical score). Industry super funds remains as the most ethical among organisations in the sector. Pay-day lenders have improved their net score ratings compared to 2018, albeit still seen as unethical by 60% of Australians; while the net score rating for independent super funds has declined compared to 2018.

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Occupations (%)

Organisations (%)

Page 35: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

83 88

78 84

78 85

73 77

70 77

69 76

68 74

66 71

61 66

61 62

-2 -9

-3 -7

-4 -9

-9 -12

-11 -

-17 -22

-21 -19

-21 -24

-28 -34

-27 -38

1

1

2

1

2

2

2

3

3

3

15

11

11

12

17

17

17

17

19

25

1

3

3

4

5

4

4

5

6

5

23

25

23

26

25

28

28

29

33

27

12

14

13

17

17

18

20

19

22

24

25

31

34

33

27

28

30

29

24

23

30

35

34

43

43

44

40

48

42

47

27

26

25

23

23

19

19

19

18

19

56

47

49

35

34

31

34

26

28

22

9

6

6

6

8

8

5

6

6

6

Ambulance services

Nurses

Fire services

GPs

Veterinarians

Primary school teachers

Pharmacists

Secondary school teachers

Dentists

Ancillary service providers

Lawyers

Funds managers

Senior executives

Mortgage brokers

Aged-care Directors/Executive

management

Local politicians

Directors of foreign companies operating

in Australia

Real estate agents

State politicians

Federal politicians

Net Score 2019

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

35

Net Score 2018Occupations (%)

Top 10

Bottom 10

Occupations — ethical behaviour

Page 36: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

67 71

66 68

65 68

62 66

61 62

61 67

59 65

57 -

55 54

55 -

-9 -23

-10 -

-10 -13

-12 -23

-15 -22

-15 -17

-19 -26

-20 -22

-24 -33

-43 -54

2

2

3

2

1

3

3

2

2

3

17

12

16

20

15

18

19

15

22

39

4

4

5

6

6

7

7

4

8

7

25

24

24

24

24

26

28

27

27

21

21

23

19

23

25

19

21

21

25

24

24

36

30

25

36

28

26

34

26

23

49

42

44

51

47

43

44

35

43

38

26

20

24

24

18

22

20

19

19

12

24

29

29

19

21

28

25

28

22

28

7

7

6

8

6

7

8

4

6

5

Primary schools

Pathology services specialists

Medical charities (e.g. Cancer Council)

Public secondary schools

TAFEs

Social welfare charities (e.g. the Smith Family)

Public hospitals

CSIRO*

RSL/ Ex-services clubs

Choice*

State Parliament

Instagram**

Investment banks

Federal Parliament

Twitter

Retail banks

Life insurance companies

Foreign companies operating in Australia

Facebook

Pay day lenders

Net Score 2019

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

36

Net Score 2018Organisations (%)

*Note new groups added in 2019. **Changed from online media (blogs, websites)

Top 10

Bottom 10

Organisations — ethical behaviour

Page 37: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Issues and influences

Unweighted scores/results

37

Page 38: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QC3: From the list below, please nominate your top 5 elements for ensuring ethical conduct in society.

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes Not sure / Don’t know)

Ethical conduct in society

61

57

50

49

42

39

39

36

27

19

15

Accountability

Transparency

Whistle-blower protection

Highly ethical leaders

A strong legal framework

Strong, inquisitive media to expose unethical behaviour

Ethics education in schools

Financial penalties

Oversight by regulators

Oversight by member associations with disciplinary actions

Designated senior executive for ethics e.g. Chief Ethics Officer*

38

Other = 1%

Accountability (61%) continues to be the top element of importance to ensure ethical conduct in society, with no change compared to 2018. This is followed by transparency (57%), whistle-blower protection (50%), and highly ethical leaders (49%).

2018

61

57

49

53

48

37

42

37

27

21

NA

*Note new statement added in 2019

Top elements ensuring ethical conduct (%)

Page 39: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QE7: In business, what are the top issues relating to unethical behaviour? Please nominate up to 5 answers

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes Not sure / Don’t know)

Ethical issues in business

62

51

48

45

44

42

41

34

32

29

21

Corruption

Company tax avoidance

Misleading and deceptive advertising

Executive pay

Environmental responsibility

Discrimination

Bullying in the workplace

Workplace health and safety

Human rights

Company tax minimisation

Treatment of suppliersOther = 1%

39

The top issues relating to unethical behaviour in business continue to follow the same order. Corruption remains in the top position (62%), followed by company tax avoidance (51%), misleading and deceptive advertising (48%), executive pay (45%), and bullying in the workplace (41%). Environmental responsibility and human rights are mentioned more often in 2019 (from 36% to 44% and 27% to 32% respectively).

2018

60

55

52

48

36

42

44

31

27

33

22

Top issues relating to unethical behaviour (%)

Page 40: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Influence of roles on organisational ethics

3

4

4

4

4

4

8

10

7

10

15

5

4

5

5

9

10

14

16

18

19

23

18

19

21

25

22

27

27

27

35

30

29

34

35

42

39

38

36

33

32

30

30

24

39

38

29

27

27

24

17

15

10

11

9

Weak

(Net)

CEO

Board of Directors

Senior management

Chairman

Government/ Laws/

Regulations

Shareholders/ Owners

Customers

The public

Suppliers

General workforce

Activist groups

74 66 76

73 65 72

71 62 71

66 57 70

65 52 61

60 47 49

50 28 33

47 22 24

40 15 13

41 12 14

33 -5 12

QE13: Thinking about organisations generally, how much influence do you feel the following groups have on the overall ethical

practices and outcomes of the organisation?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

8

8

9

9

13

13

22

26

25

29

38

Very weak influence Somewhat weak influence Neither weak nor strong influence Somewhat strong influence Very strong influence

40

Those who work within organisations at the most senior level continue to be seen as having the most influence on the overall ethical practices and outcomes, with the CEO, board of directors, and senior management unsurprisingly seen as the most influential (70%+ 'Strong influence'). With regard to external influence, government/ laws/ regulations remain most influential (65% 'Strong influence’). Net scores have decreased for the top five roles compared to 2018.

Strong

(Net)

Net Score

2019

Net Score

2018Influence on ethics (%)

Page 41: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Topical Questions

Industry Super funds

Retail super funds

Financial Planners and advisors

Banks

Bank senior executives

Insurance company directors

Insurance Companies

Bank directors

Mortgage Brokers

Insurance company senior executives

QT3: The recent financial services royal commission revealed poor behaviour by many institutions and their boards and executives.

As a result of the findings, how much positive improvement in ethical behaviour do you expect to actually occur of the following…?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

No Improvement Slight Improvement Total Improvement

41

Expected improvement in ethical behaviour (%)

Less than one in five Australians expect ‘total improvement’ in ethical behaviour by boards and executives across various financial services institutions to actually occur.

34

37

40

44

52

49

45

51

43

51

49

48

46

42

35

37

42

35

43

36

17

15

14

14

14

14

13

13

13

13

Page 42: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QT1: Please nominate the top 5 issues of importance, in your opinion, relating to unethical behaviour in the banking and finance sector

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes Not sure / Don’t know)

51

50

49

48

48

47

38

36

22

21

20

18

17

17

14

42

Executive salaries

Bribery and corruption

Insufficient regulation

Executive bonuses

Lack of government action

Treatment of customers

Poor corporate culture

Poor corporate governance

Financial planner commissions

Lack of leadership from bank chief executives

Lack of competition

Lack of leadership from bank boards

Lack of leadership from bank management

Market trader bonuses

Financial market trader salaries

Issues and influences in banking and finance sector

Other = 3%

The top ethically important issue within the banking and finance sector continues to be executive salaries (51%). Bribery and corruption issues remain in second place (50%), while insufficient regulation ranks third (49%) in ethical importance. This is followed by executive bonuses (48%), lack of government action (48%) and treatment of customers (47%). Lack of government action is mentioned more often in 2019 (from 42% to 48%).

2018

52

50

48

50

42

47

38

37

26

20

20

18

18

15

16

Top issues and influences relating to unethical behaviour in banking and finance sector (%)

Page 43: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

21

34

58

17

24

17

28

22

15

23

15

7

12

6

4

QT8: For companies up to 5,000 employees, how ethical are each of the following possible pay levels for the CEO? / T8a: For companies up to 15,000

employees, how ethical are each of the following possible pay levels for the CEO?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Ethical

(Net)

Unethical

(Net)

37

58

74

Net

Score

35 -2

20 -37

11 -63

43

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

$300,000 per annum

$600,000 per annum

$3 million per annum

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

20

33

53

18

21

19

28

22

14

22

15

9

13

8

5

$300,000 per annum

$600,000 per annum

$3 million per annum

38

54

72

34 -4

23 -31

14 -58

Topical questionsFor Australians, the more the CEO is paid, the more unethical they think it is. The majority of Australians (74%) perceive that it is unethical if the CEO of a company with up to 5,000 employees is paid $3 million per annum (i.e. 35x the average Australian’s yearly income); a similar situation is seen for the CEO of company with up to 15,000 employees (72% of Australians perceiving it to be unethical).

Ethicality of CEO pay levels (%), companies up to 5,000 employees

Companies up to 15,000 employees

Page 44: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Topical Questions

Federal Government

International Bodies (eg UN, APEC)

Multi-national Corporations

State Government

Australian businesses

Local Councils

Individuals

QT4: To what extent do you think there is an ethical obligation to take action on climate change for each of the following?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

No Ethical Obligation Slight Ethical Obligation Urgent Ethical Obligation

44

Ethical obligation to take on climate change(%)

The majority of Australians (60%+) believe that the federal and state governments, international bodies and multi-national corporations have an urgent ethical obligation to take action on climate change. At least one in two Australians believe that individuals, local councils and Australian businesses also have an urgent ethical obligation to take on climate change.

10

11

10

10

10

11

11

24

26

27

29

36

36

38

66

63

63

61

55

54

50

Page 45: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QT5: To what extent is there an ethical obligation for organisations to take action on climate change, even if it impacts their profits and costs workers’ jobs? /

QT6: To what extent is there an ethical obligation for Australia to fully transition to renewable energy such as hydro, wind and solar power?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Topical questions

45

Nine in ten Australians purport there is at least some obligation for organisations to take action on climate change, even if it impacts on profits and job losses. A similar proportion (90%) also believe there is an obligation for Australia to fully transition to renewable energy.

10

4347

No ethical obligation

Slight ethical obligation

Urgent ethical obligation

Ethical obligation for Organisations to take action on climate change (%)

Ethical obligation for Australia to fully transition to renewable energy (%)

11

3753

No ethical obligation

Slight ethical obligation

Urgent ethical obligation

Page 46: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Topical Questions

8

8

10

12

11

21

26

35

31

36

10

15

14

18

17

25

30

22

25

24

40

33

38

34

48

32

25

25

26

24

29

28

28

27

18

16

13

13

12

11

13

15

10

9

6

6

6

5

5

5

Unethical

(Net)

AI Based traffic management systems

(traffic lights, train signals, air traffic

controllers)

Surveillance systems in main public

areas e.g. CCTV

AI managing power grid/water/utilities

AI Based medical diagnosis

Robots

AI Based Governance at Board Level

(i.e. assisting with decision making)

AI Based HR/hiring that goes through

all the data publicly & privately

available on you

AI based autonomous lethal weapons

[such as tanks or missiles]

AI based systems that are created in a

way that cannot be understood

AI based social scoring of citizens by

governments

43 25

44 20

38 14

36 6

24 -3

22 -23

19 -37

18 -39

17 -39

16 -43

QT2: The development of artificial intelligence (AI) is raising many serious ethical questions throughout the world. On balance, how

would you rate the ethical nature of the following systems that will use AI?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

18

23

24

30

27

45

56

57

57

60

46

Ethical

(Net)

Net Score

2019Artificial Intelligence (%)

AI based traffic management and public surveillance are seen as the most ethical uses of AI systems (40%+ ethical), while AI based social scoring of citizens are seen as the least ethical (60% unethical). Other issues seen as unethical by the majority of Australians include AI based hiring using private and public data, AI based autonomous lethal weapons, and AI systems created in ways that cannot be understood (50%+ unethical).

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

Page 47: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Areas of ethical consideration

Unweighted scores/results

47

Page 48: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QC1: Given that making good ethical decisions requires a good understanding of both sides of a subject and access to unbiased

information, which of the following areas do you feel are ethically difficult to navigate? Please nominate up to 5.

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes Not sure / Don’t know)

Navigating ethics in specific areas

49

39

37

34

32

31

30

29

27

25

24

21

19

Immigration

Euthanasia

Climate change

Indigenous affairs

Government policies

Foreign investment in Australia

Business practices of foreign companies operating in

Australia

Terrorism

Social security

Environment

Foreign investment

Renewable energy

Business practices of Australian companies

48

One in two Australians continue to feel that immigration is the most difficult area to navigate ethically (49%), followed by euthanasia (39%, down from 47% in 2018). In 2019, climate change has moved to third position (23% to 37%).

2018

54

47

23

38

31

34

33

30

31

19

24

17

19

Top areas of difficulty for ethical navigation (%)

Page 49: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QC2: How would you rate the level of difficulty in navigating the ethical issues that may arise from the following likely future developments?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes Not sure / Don’t know)

Ethical difficulty of future developments

5

9

12

14

16

13

19

23

20

30

13

17

18

18

20

22

24

24

23

23

35

33

38

40

33

35

32

29

33

26

34

27

24

20

23

21

18

16

17

14

13

14

8

8

8

9

7

8

7

6

Difficult

(Net)

Extremely difficult Very difficult Somewhat difficult Not difficult Very easy

Crowdsourcing apps e.g. Uber, Airbnb

Increased connectedness to the internet

Drones

Robots in the workplace*

Genetically modified food

Use of big data analysis to target

consumers**

Self-driving cars*

Gene manipulation for medical treatments

Artificial intelligence

Embryo experimentation

18

26

30

32

36

36

43

47

43

53

47 29 24

41 15 16

32 2 5

28 -4

31 -5 -7

30 -6 -16

25 -18

24 -23 -24

24 -18 -22

20 -33 -34

49

Australians continue to be most concerned ethically with future developments that involve humans interfering with nature’s natural course, from embryo experimentation, to gene manipulation for medical treatments and artificial intelligence (40%+ for ethical difficulty). In addition, Australians are concerned with the ethics of self-driving cars (43% ethical difficulty). Fewer Australians in 2019 are concerned by the use of big data to target consumers.(-16 to -6).

Easy

(Net)

Net Score

2019

Net Score

2018Future developments (%)

*Note new groups added in 2019. **Question wording slightly changed in 2019

Page 50: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QC4: How would you rate the level of ethical behaviour of the following people that you may have contact with? Please rate only

those that you do have personal contacts with.

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Ethical behaviour of people in personal contact with

2

2

3

5

3

6

8

10

12

12

12

3

3

4

9

6

11

12

14

19

20

20

13

15

16

17

27

33

29

27

30

29

29

33

38

45

42

38

33

33

35

30

29

29

49

42

32

27

26

17

19

15

9

10

10

Unethical

(Net)

Your doctor (GP)

Your pharmacist

Nearest local hospital

Police*

Your accountant

Your financial planner

Your lawyer

Your bank

Your elected local councillors

Your local member of State Parliament

Your local member of Federal Parliament

5

5

7

14

9

17

19

24

31

32

32

82 78 80

80 75 76

77 70 72

69 54

63 54 52

50 33 27

52 33 34

50 26 18

39 9 -1

39 7 -1

39 7 2

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

50

Overall, the ethical behaviour of people we are in personal contact with has remained mostly consistent with 2018, with the exception of banks, which has improved its net score. Healthcare professionals with whom Australians have had personal contact are perceived as most ethical (70%+ ethical score). The ethical net scores of local members of state parliament and elected local councillors have also improved in 2019.

Ethical

(Net)

Net Score

2019

Net Score

2018

*Note Police was added in 2019

People in personal contact (%)

Page 51: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QC5: How would you rate the level of ethical behaviour of each of the following situations?

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000) (excludes No Opinion and DK for each statement)

Ethical behaviour in particular situations

21

36

31

18

20

17

22

46

30

32

35

29

33

29

20

20

22

33

37

35

31

9

10

9

9

10

11

13

4

4

5

5

4

4

6

Unethical

(Net)

Not correcting a restaurant bill when it does not

include an item that you have ordered and

consumed

A 'win at all costs' approach to sport

Collection of data by social media companies

Taking a sick day when not actually sick

Job losses resulting from gains in artificial

intelligence

Categorising someone who offers an opposing

view (e.g. calling them greenie or climate-

denier)

Opposition political parties and independents

blocking legislation of a party which has won

government

68

65

64

53

49

50

50

13 -55 -54

14 -51 -54

14 -49 -53

14 -39 -42

14 -35 -32

15 -35 -37

19 -32 -26

51

The majority of Australians rate each of the situations as more unethical versus ethical, eliciting strong responses for the collection of data by social media companies (64%), ‘win at all costs’ approach to sport (65%) and not correcting a restaurant bill when it doesn’t include an ordered item (68%).

Ethical

(Net)

Net Score

2019

Net Score

2018

Very unethical Somewhat unethical Neither unethical nor ethical Somewhat ethical Very ethical

*Note the following responses were removed in 2019 ‘Personal verbal attacks ('sledging') against sporting opponents’.

Particular situations (%)

Page 52: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

QC6: If you have any other ethical dilemmas or issues that you are concerned about, please provide a short description here below.

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000). Full list of verbatim comments provided in Excel. 52

'

'

Politicians are view as leaders in our society but yet a large number

of them behave like little children and do unethical actions… They

should work together for the benefit of the nation and society.

Those decision makers for policies/laws being made by people that

have never worked in the area or had any personal experience in

the area

…disparity of wealth within the community… the politicians aren't

listening

… raising Newstart…

e.g.

'

'

Why should taxpayers fund illegal immigrants who came here

by boat to stay while legitimate requests for legal immigration

are denied

Government reducing the number of seats for immigrants. Point

system is sucking

Seeking refuge is a human right, especially when there is no

safe option to remain in their own countries due to war, human

rights violations and/or famine.

' …Allowing the extinction of the environment, animals &

people because 'it's all about the money (economy)'

being more important than actual be able to live safely…

…Climate change deniers…

…Maintaining our standard of living while destroying the

environment…'

'Mainstream media not being straight up or forming a

false narrative to advance their ideological agenda or

make money…

Media/educators espousing their personal beliefs as

facts to public/students…

…Fake or real news…. '

Some key ethical concerns facing Australians include (but are not limited to)…

Other ethical concerns

Highlights of some key ethical concerns expressed

Misuse of power and inequality

Distrust of media and experts

Immigration and refugee treatment e.g.

e.g.Action on climate change e.g.

Page 53: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Appendix

53

Page 54: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

-28 -24-17

-9

22

49 50

67 71 75 79

Banking Media Large Corp Govern't Trader Assoc. Public Service Small-MediumEnterprises

ProfessionalMembership

Assoc.

Charities Education Health

Ethics Index 2019 (37)

Overall Importance of Ethics (82)

100

80

60

40

20

0

-20

-40

-60

-80

-100

Base: Australians 18-65, Ethics Index Oct 2019 (n=1000)

Ethics Index 2019(Overall Ethics Index 2019: 37)

-41 -38 -27 -15 15 50 52 65 75 84 86Ethics Index

2018

Ver

y Et

hic

alSo

mew

hat

Et

hic

al

Nei

ther

Eth

ical

or

Un

eth

ical

Som

ewh

at

Un

eth

ical

Ver

y U

net

hic

alWhilst the Ethics Index comprise ethics scores of key sectors in society, taking into account organisations and professions within them, this chart plots the scores that Australians nominated for each sector at an overall level. Health, education, charities / NFP and professional membership associations are perceived as 'Very Ethical', while Government is seen as neither ethical nor unethical. Media, and banking, finance & insurance are still regarded as 'Somewhat unethical', however large corporations saw an increase in its ethic score, from -27 to -17.

54

Banking, Finance & Insurance

Media Large Corporations

Government Trade or Worker

Associations

Small to Medium

Enterprises

Public Service

ProfessionalMembershipAssociations

Charities & Not-For-Profit Organisations

(NFP)

Education Health (e.g. hospitals,

medical practitioners, pharma co’s)

Page 55: Table of Contents · Australians have an understanding of ethics and its main definitions, with 96% agreeing with the three ethics definitions in the survey. A large majority (86%)

Governance InstituteEthics Index 2019

END