The mere mention of business ethics often prompts expressions of amusement.

Many are cynical about the whole concept. Some say it is a contradiction in terms. Indeed, this cynicism is actually encouraged by the self-righteousness of those who take it upon themselves to lecture on the subject.

Yet in practice, most entrepreneurs are, on average, more honest than most.

Since there is no one telling us what to do, we are responsible for our own actions, and so we tend to think more about responsibility than the “we were only obeying orders” crowd.

Morality in business is usually straightforward – “Thou shalt not steal”; “Thou shalt not bear false witness” etc.

Yet the recession has presented some questions to which there are no easy answers.

1   To break or not to break? Insolvency and bankruptcy usually involve default on legitimate creditors, and so are best avoided on both moral and practical grounds – but is there a point when a business is unlikely to turn around, and delaying a declaration is simply piling up more debt that cannot be repaid? 

2   To fire or not to fire? Making people redundant is always painful – but it may be necessary to get rid of part of an organisation in order to keep the rest of it viable.

3   How honest is honest? One should be frank with everyone – but it is plain stupid to give away sensitive information to people who are likely to take advantage.  

4   Who gets paid first? The creditors to whom one owes most may not be the people who need it most.

5   What is law? Laws have become so complex and contradictory that sometimes you have to decide which should be taken seriously and which are essentially window dressing.

There are no easy answers to these questions. The only comfort is that you are not alone in wishing you did not have to ask them.