Acting in the public interest – a framework for analysis - ICAEW

Panel 6.3: Weisbrod’s public interest ratioWeisbrod’s ‘public interest ratio’ sought to measure the effect of lobby groups’ benefit. Theratio is calculated as external benefit divided by external plus internal benefit. 126 For example,at one extreme, a labour union in a ‘closed shop’ factory campaigning to improve safetyissues in that factory, would have a very low ratio – there is no external benefit, only benefitto its members. A small rambling group campaigning to re-open a pedestrian bridge thatwas used by many others, would, if successful, be likely to benefit mostly people outside itsown group, so, based on numbers affected, there would be a small internal benefit but a muchlarger external benefit. However, Weisbrod’s ratio does not allow for the size of the groupconcerned: it actually tends to flatter small groups. It also does not take into account anyqualitative factors attributable to the respective groupings, so should be treated with caution.Another matter to address is to ensure that the selection of opinion sought is not biased,consciously or otherwise, towards those groups or individuals most likely to agree with theintentions of the advocate of the public interest action. As noted previously, public choicetheory suggests that those responsible for public interest actions may well have their ownmotivations, and a pre-determined idea of what they would like the outcome to be.Panel 6.4: ICAEW and ascertaining relevant opinionIn the context of individual members, expectations of those with a direct interest are usuallymade relatively clear by the client or employer. The potential problem is with potentialconflicts between these duties, and wider duties to the general public, considered inPanels 3.1 and 4.1.For ICAEW, in common with other regulatory and/or representational bodies, ascertainingand weighting appropriate opinion, as opposed to just expressed opinion is a challenge.Consultation has to be not just reactive to those best organised to lobby, but, usingexisting knowledge and skills, proactive in terms of seeking out others likely to be affected,in particular where gaps exist in the knowledge and skills. ICAEW does this through forexample: trying to collect and balance out input from its committees and boards; publicisingactivities; organising events for those likely to have an interest; and initiating direct contactswith its members and other relevant persons.ICAEW’s Code of Ethics includes a requirement to maintain confidentiality as a fundamentalprinciple. However it allows this to be over-ridden in a number of circumstances, includingwhen disclosure is in the public interest. However, it recognises the potential differencesbetween actual and expressed information, counselling that ‘In deciding whether to discloseconfidential information, relevant factors to consider include ... whether all the relevantinformation is known and substantiated, to the extent it is practicable. When the situationinvolves unsubstantiated facts, incomplete information or unsubstantiated conclusions,professional judgement shall be used...’ 1276.5 Ensuring conflicts within the relevant public are not overlookedThe ‘consensualist’ approach referred to earlier could be taken as suggesting that somethingcan only be in the public interest if everyone agrees with it – what has also been called acollective concept of the public interest. 128 However, we believe that this is too narrow aperspective and would discount many actions which are for the greater good, even though noteveryone agrees with them. There are inevitably variations between what different individualswant, both in terms of their underlying moral values and, in priorities between values becausethey often conflict with each other. For example, whether the end justifies the means, orthe means justifies the end. A further source of differences is the variation in cultural values,particularly, though not exclusively, across international boundaries.126Quoted in Pleasence and Maclean, The Public Interest.127ICAEW, Code of Ethics.128Benditt, ‘The Public Interest’.42The relevant public’s wants