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The significance of ethical standards in professional practice lies in their role as foundational guidance for decision-making. Ethical standards help professionals navigate complex situations by providing a framework that outlines acceptable behavior and responsibilities. They establish a set of principles that promote integrity, objectivity, and accountability, guiding professionals in their interactions with clients, colleagues, and the public.

This framework is crucial because it helps ensure that decisions are made not just based on personal judgment or profit motives but also in consideration of the greater good and the welfare of stakeholders involved. By adhering to ethical standards, professionals reinforce trust in their expertise and foster a culture of transparency and ethical conduct in their field. This commitment to ethical behavior ultimately serves to enhance the profession's credibility and efficacy in serving society.

The other options do not capture the primary role of ethical standards. For instance, while limiting competition might be a side effect in some scenarios, the primary purpose is not to restrict competition. Ethical standards are not strictly regulations either; they are guidelines that inform behavior rather than enforceable rules. Lastly, enhancing personal discretion is contrary to the intent of ethical standards, which aim to provide objective criteria for decision-making rather than leaving matters solely to individual judgment.