Wachter’s statement, “Laws and regulations largely inform individuals what they cannot do, but ethics instruct individuals and organization as to what they should do. Ethics are about doing the right thing, not about not doing the wrong thing,” draws a crucial distinction between compliance and true moral leadership. Laws establish the minimum acceptable standards of behavior, serving as guardrails to prevent illegal actions and impose penalties for their violation. They define what an organization must do or must not do to avoid legal repercussions.

Ethics, on the other hand, transcend these legal boundaries. They delve into the realm of discretionary actions that align with moral principles, values, and a commitment to societal well-being. Ethics guide an organization and its individuals toward a higher standard of conduct, focusing on what is inherently “right,” even when there is no specific legal mandate. For instance, paying employees the minimum wage is a legal requirement (what you cannot not do if you operate). However, advocating for a living wage, investing in employee development beyond mandated training, or actively fostering an inclusive culture where all voices are heard – these are ethical choices that reflect doing “the right thing” (what you should do), often driven by a moral compass rather than merely avoiding legal infractions. This distinction is particularly vital for Human Resources (HR) professionals, who are often the conscience of an organization, navigating complex human issues where legal compliance is a baseline, but ethical leadership dictates the true path.