Have you ever asked yourself, "Am I ethical?" Most of the time, the answer comes back as a resounding "Yes!" However, what do we do during those uncomfortable situations in which the answer is "No"?

Each of us defines "ethical" from our own point of view, but it's when we come up against someone else's definition of ethics that we can fall short. As adults, we can cope with, and certainly have faced, unethical chaos before. But what about those who come after us? Those less financially secure? What about our loved ones? What about the weak, sick and elderly? How can we better prepare their futures by supporting a healthy ethical environment?

The Theory of Chaos

For many years, I taught accounting and finance adult college students a theory that explains ethical dilemmas through the "chaos" theory and its two rules.

The first is the "twinge" rule. Each of us has an inner self, which knows right from wrong, and if we don't ignore that first little twinge that says, "Wait a minute, is this the right thing to do?" we'll be okay. If we ignore that instinct, there is a second thought that quickly follows, along the lines of "they know what they are doing," "everyone does it," or "I deserve it." If we don't stop then and change our approach, the second rule takes effect and we begin to introduce chaos to our civilization.

As an example, today many home loans are in default due to owners who have lost their income because of unemployment, illness or other catastrophic events. However, there is another group that defaults on their home loan by choice because they are "upside down" -- meaning they owe more than the property is worth. "Upside down" has become a widespread controversy among politicians and do-gooders who say something has to be done.

I argue that a homeowner who defaults on a home loan though their income has continued at the same level is a thief. Now how is this unethical action impacting our civilization?

Lending contracts are no longer honored as they were, when lenders sought to repossess property; today, they have to go to court to prove their case. This provides a major concern for future expectations. Many years ago, the standard down payment for a home was 20% of the value. In recent years, 10% became the norm. As lenders continue to find that the loan contract is for all intents and purposes not binding, they will require more money down. I am quite certain that we will see a time when the minimum down payment on a house is 30% or perhaps even 50%. This opportunistic, unethical defaulting sanctioned by politicians and do-gooders will bring chaos into our housing system and ultimately prevent the less wealthy from acquiring homes.

The Introduction of Ethics

Ethics starts with the individual -- it is a matter of personal honor, most often without reward. Each person has a role to play in our civilization; some are exalted in their roles, such as politicians, business leaders or religious leaders. However, most of us are ordinary individuals without special acclaim. Regardless of our titles, all roles are equally important and demand ethical practice. All individuals -- homeowners, politicians and mortgage bank employees alike -- must hold themselves to the same ethical standards.

Unfortunately, ethics cannot be regulated, legislated or enforced effectively. If it could there would not be such an onslaught of ethical violations. There are, however, tools put into place to successfully guide our decision making. As for myself, I have found that the root of my ethical guidance for best business practices are derived from IMA's five standards in the IMA Statement of Ethical Professional Practice: competence, confidentiality, integrity, credibility and resolution of ethical conflict. This wide-ranging, step-by-step approach ensures that one will not breach ethics at any level, if diligently followed.

Every time we do not behave ethically, we bring chaos into our civilization. Through these actions, we weaken our civilization and threaten the futures of our loved ones. Much of the financial chaos since 2007 is said to have been based on unethical behavior. How much different would our world be today if we all proactively incorporated ethics into our professional and personal lives?

Let's think about the consequences to our civilization before we act unethically and make an effort to change our behavior and improve the lives of future generations with each passing day.

Lee Bertrand is an account executive at Southern California Edison and Founding Dean of the IMA Leadership Academy. He is a former U.S. Marine Corps Captain.