Importance of Ethical Work Practices

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The provided report emphasizes the significance of working ethically in the workplace. It suggests that companies should establish clear codes of conduct and encourage employees to report any suspicious activities. The report also recommends collecting data and evidence before reporting unethical practices, ultimately aiming to prevent misbehavior within a company.

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Professional Ethics

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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
1.1: Fundamental principles of ethical behaviour.......................................................................4
1.2: Legal and ethical requirements affecting finance sector......................................................5
1.3: Role of professional bodies in context of accounting and finance sector............................5
1.4 Individual, organisation or industry sectors are expected to operate within set rules...........5
1.5: Risk of improper practice and importance of vigilance in an organisation.........................6
1.6 Opportunities for maintaining knowledge of codes of practice affecting accounting and
finance sector..............................................................................................................................6
Task 2...............................................................................................................................................7
2.1 Act ethically when working with clients, suppliers, colleagues and others..........................7
2.2 Importance of objectivity and maintaining a professional distance between professional
duties and personal life................................................................................................................7
2.3 Importance of adhering to organisational and professional values and code of ethics.........8
2.4 Importance of adhering to organisational policies for handling client monies.....................8
2.5 Conditions under which confidential information should be disclosed and who is authorize
to the information........................................................................................................................9
2.6 Importance of working within the limits and confines of one’s own professional
experience...................................................................................................................................9
Task 3.............................................................................................................................................10
3.1: Relevant authorities to which unethical behaviour should be reported.............................10
3.2 Appropriate action to take when requests for work are beyond the employee’s competence
...................................................................................................................................................10
3.3 Inappropriate client behaviour and how to report it............................................................10
3.4: Internal and external reporting procedures which is followed to report unethical act
against employees or clients......................................................................................................11
3.5: Strategies that could be used to prevent ethical conflict....................................................11
Task 4.............................................................................................................................................12
4.1: Explain importance of ethical approach to sustainability................................................12
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4.2: Responsibilities of finance professionals in upholding the principles of sustainability....12
Conclusion.....................................................................................................................................12
References .....................................................................................................................................14
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Introduction
Professional ethics is a mixture of values which helps employees and employer to behave
in a certain manner. In other words, it states that rules which should be followed by person while
interacting with their colleague at the workplace. Though there are certain principles which
should be followed by an individual like honesty, loyalty, trust etc to behave properly and
ethically. In this report, McKinsey & company is taken into consideration. It deals in analysis of
companies to evaluate their performance and headquarters in New York city. Different types of
principles which should be in considerations while working will be explained. There are certain
rules while interacting with internal and external customer will be discussed. Actions taken while
suspecting any breach of ethical codes will be scrutinized.
Task 1
1.1: Fundamental principles of ethical behaviour
There are few pre set code which is set for an individuals if they want to behave ethically
is explained below,
Integrity: Person should be honest and straightforward while interacting with their
colleagues in workplace as lies will leads to conflict among workplace. Accountant
person should not do any mischiefs while making balance sheet in company (American
Library Association, 2016).
Objectivity: At the workplace, individual should take their decision without any biasness
or influence. For instance, person should not change their number on balance sheet due to
influence of their senior.
Professional and technical competence and due care: Employees should focus on
individual learning as proper information should be provided to the clients according to
their requirements.
Confidentiality: Company should not disclose any confidential information to third
parties without any authority. Funds allotted to different departments should not be
disclose to other companies as it will affect their strategies and policies.
Professional behaviour: Individual should not break their rules and regulations set by
the company for their personal or professional work. Company should not exceed their
reserve cash ratio in any circumstances.

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1.2: Legal and ethical requirements affecting finance sector
There are some rules and regulation set by government and professional bodies for their
smooth functioning which are explained below,
Civil law: This law related to matters which are private or personal affairs instead of
crime.
Criminal law: This law says that citizens of UK should know their boundaries before
doing any actions. Individual would be penalized by the local government if they have
committed any crime. Any person would be call as a criminal if they have done any
mischiefs in their sector of working.
Compliance: Person should always compliance with rules and regulations set by
government and company. An accountant should know their rules while working on
figures provided by company (Gillam and et. al., 2014). It compliances are not there
while working on some confidential information if might get leaked to the third party
which would impact the organization brand image.
Code of practice: It is a set of rules which a personal should follow while working in
their profession to avoid any legal issues. For instance if employees have change some
numbers in balance sheet due to influence of seniors than actions for fraudery would be
taken against them.
1.3: Role of professional bodies in context of accounting and finance sector
Professional bodies work is to make the rules and regulations in the finance sector which
will help the companies to perform their business without committing any frauds or crime. There
are different bodies in UK like Association of Chartered Certified Accountants, Financial
Reporting Council ,Accounting Standards Board etc. Some standards are set by bodies like cash
reserve ratio within company, balance sheet frameworks, Profit and loss accounts etc which
should be follow by company operating in UK to avoid legal issues which could be imposed by
local government or company itself.
1.4 Individual, organisation or industry sectors are expected to operate within set rules
Rules and regulations is made by the bodies for the effortlessly operating of companies
while working. It also helps company to follow integrity and objective which is set by them
before entering into the market.
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Individual
By being punctual in their work
Helps employees to work with team to improve their efficiency.
Organisation
It helps company to protect their confidential information.
To protect integrity of employees.
Industry sector
To promote fair competition between companies in the industry.
Helps companies to grow in their field without committing any crime or fraud.
1.5: Risk of improper practice and importance of vigilance in an organisation
Improper practices refers to action which are taken by an organisation which are against
the ethics and company's policy. These practices are done to provide wrong information to their
clients to make more profit from them. Wrong practices includes money laundering, terrorist
financing, due diligence(Davies, 2016) . Due to this, vigilance is important for company to work
in a rightful manner. Vigilance is important for any organization to keep align their vision and
mission to the work their employees are doing. It is an important function like other functions of
organisation. Vigilance refers to action done by the company to analyse and monitor factors
which could affect company's policy. Importance of vigilance in McKinsey is as follows,
To avoid any improper practices within company as it would affect goodwill of
McKinsey.
It improves transparency in working system and also helps to increase their productivity
by doing right thing according to principles of ethics.
It helps McKinsey to promote their best performer to increase their overall efficiency.
It assist company to prepare for the uncertainty which might arise in future.
1.6 Opportunities for maintaining knowledge of codes of practice affecting accounting and
finance sector
Knowledgable workforce is more productive as compare to others. In finance sector it is
important to follow guidelines as it will decrease capital risk, market risk, credit risk etc.
Importance of updating information about rules and regulations in finance sector is,
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It helps company to save their tax and liability according to the rules which is set by local
government (Trevino and Nelson, 2016.
It can help McKinsey to gain competitive advantage over others as following guidelines
will help them to increase their profitability.
It will help this sector to decide which information should be disseminate or hidden as
confidentiality is important for clients and their companies.
It improve accounts payable and accounts receivable cycle of company in finance sector.
Better understanding of guidelines will help this sector to make decision or forecasting
according to their accurate balance sheet.
Task 2
2.1 Act ethically when working with clients, suppliers, colleagues and others
Ethical working is important for any company as it improves goodwill, customer
satisfaction, decision making skills etc. When dealing with clients, employees should follow
professional behaviour which includes honesty, integrity, subjectivity etc. It enhances the
customer engagement with their company which will leads to better profitability and efficiency.
At the time of dealing with suppliers, company should pay according to the market rate and
avoid bribery as much as they can. It decreases company's goodwill in the mind of suppliers.
Stakeholders have share of the company they are investing and have authority to check the
financial situations of company (Brecher, 2014). They should give proper dividends, provide
accurate reports like balance sheet or profit and loss accounts to their shareholders as if this does
not happen then stakeholders will deploy their shares from the company. Company should
promote open communication, transparency at the time of appraisal etc as it will reduce conflict
among employees.
2.2 Importance of objectivity and maintaining a professional distance between professional
duties and personal life
Objectivity refers that company or employees should not use bias or favouritism while
taking decision for company. Wrong decision taken by them could affect the company in
negative way which includes loss in business, high turnover ratio etc. Importance of objectivity
in work place is describe below,

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It helps company to fairly evaluate the performance of employees and reward according
to their work. It will motivate employee’s motivation and productivity (Bond, 2015).
If company has use favouritism while taking important decision than other party can file
a lawsuit or or discrimination case on the company. It will destruct the image of company
in market.
Company should use objectivity principle while working as it will avoid legal issues by
the government.
It is important for individual to not mix professional duties and personal work as using
company's properties for the personal use will be unethical and employee’s could get a
termination letter for breach of codes (Cohen, 2016). Other than that, pressure of professional
career could hampered personal life and relations with their relatives and families. That's why
employees should not mix both duties at the same time.
2.3 Importance of adhering to organisational and professional values and code of ethics
It is important for any individual to adhere to rules and regulation set by company as it
will benefit them by increasing their productivity and effectivity while working. Importance are
explained below,
If employees are following rules then it will automatically assist customers also. If
company policies are motivating the employee’s then there working performance will
also increase which will leads to better customer engagement.
It helps company to avoid any lawsuits against them as following rules will persuade
healthy working environment. If company is providing work friendly environment then it
will result in less turnover and more efficiency and productivity (Macaulay and Arjoon,
2014).
By following the code of ethics company would protect customers and clients
confidential information from third parties.
Company can report a case against any clients or supplier if their actions found
suspicious as it will help the society for their betterment.
2.4 Importance of adhering to organisational policies for handling client monies
Clients are important for McKinsey as they are the one who brings income in company
due to which there business are running. Company focus is to try to improve the touchpoints of
customers due to which their engagement experience will also increase which will persuade to
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high retaining of customers. When employees of McKinsey is working according to the
guidelines given to them, their work performance will align to the vision of company. If
employees performance is satisfactorily then quality of their work will fulfil their customer needs
and wants. It will increase customer retention rate which is helpful for company in future.
Employees should follow their confidentiality act in which information regarding customer can
not be shared with other employees who does not have any authority or the third party in any
circumstances (Akerstrom, 2017). If customer feels safe while dealing with McKinsey then it
will bring more work for their company which is better for balance sheet in future.
2.5 Conditions under which confidential information should be disclosed and who is authorize to
the information
There are different condition in which McKinsey can share confidential information to
the authorize person which are given below,
If orders are given by local authorities or government officials due to legal process
If McKinsey finds any suspicious or illegal activities done by customers. Information will
only be shared with court, government or nominee person which is assigned by the
clients.
If information sharing is important for clients interest.
To save McKinsey or their subsidiaries against any type of fraud or crime done by the
clients
Information could be share to authorize person at the time of corporate governance or
auditing to avoid any legal issues.
2.6 Importance of working within the limits and confines of one’s own professional experience
It is importance for employees to work under company's guidelines as it reduces extra
task which could be done by the employee’s to attain their goals. Due to this there productivity
and effectivity towards work will increase to a certain level. Apart from that, expertise and
knowledge of other employees helps individual to reduce error which might occur in the future
and increase their own knowledge towards specific work assigned to them (Frederickson and
Rohr, 2015).
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Task 3
3.1: Relevant authorities to which unethical behaviour should be reported
It is ethically right to report any suspicious or illegal activity to the authorize person as
prevention is better than cure. There are different authorities which an individual could go for
reporting any malpractices which are given below,
Vigilance team work is to scan and analyse the internal and external threats of McKinsey
and how it could be resolve so that it does not affect company's efficiency and
effectivity.
Person can report suspicious activity to the local authorities like police or government as
they can interfere in company business if it is gonna hamper society well being.
Company can open public forum for customers in which they can report any
malpractices to the company directly (Abdul-Rahman, Hanid and Yap, 2014).
Manager or executives are also responsible for company's healthy working environment
and individual can contact them through email id to report any odd activity.
3.2 Appropriate action to take when requests for work are beyond the employee’s competence
Different action could be taken when work is beyond employees skills are given below,
Proper training should be given by company to their employees so to increase their
knowledge and skills. It would help employees in the future to tackle different and
critical situations.
Task would be assign to other knowledgable worker who has better knowledge and skills
as any single mistake in accounting or finance would affect overall work done by them.
Company responsibilities is to scan the external environment and find out the problem
which might arise in future and by the time it came they should be well prepared to
tackle that situations (Wachs, 2017).
3.3 Inappropriate client behaviour and how to report it
It is important for company to handle client behaviour as customer are the one through
which company earns profit. But sometimes there behaviour is inappropriate towards employees
working there but due to company's guidelines employees can not revert back to them through
arguments but they could report their odd behaviour to company in many ways.

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Employee can report all the scenario to their senior manager and then its their
responsibility to manage that customer.
Individual can write letter or mail to their executives or vigilance team. Top management
has the authority to block the customer if they are wrong.
Person can also file report anonymously to company's top executives or HR team.
Employee can also file their complaint to Police, labour relation agency etc.
3.4: Internal and external reporting procedures which is followed to report unethical act against
employees or clients
Before filing any complain of illegal or suspicious activities, person should be sure that activity
done by the employee’s or client is unethical in nature. If employee is not sure then they should
contact their senior for their suggestions (Popovski, 2016). If it is unethical then employee
should make a proper disclosure in which all the details regarding activity with evidence would
be kept. Before filing a report, employee should know that who is in charge for resolving the
issues. After all the process, employee should send their disclosure to authorize person by being
anonymous. It would help that person to remain safe from that incident.
3.5: Strategies that could be used to prevent ethical conflict
There are chances of ethical conflict among employees as morale and principles of
individual are different due to distinct perceptions. Ways through which it could be prevent is as
follows,
Code of conduct should be clear in the mind of employees working there as if they are
aware about the guidelines than actions would be made accordingly. Apart from that
reason of conflict should be clear
Proper training should be given to employees regarding their work and rules which they
should follow to avoid any legal consequences.
Policies made by the company should be according to the ethical guidelines (Jindal-
Snape and Hannah, 2014).
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Task 4
4.1: Explain importance of ethical approach to sustainability
Sustainability would only be attained if company is giving sustainable business
performance for a long time. Performance of employees while doing their accounting can only
be improve if they are following guidelines set by company and professional bodies according to
work assigned to the employee’s. Ethical behaviour should be maintained and improve by the
employees and company on regular basis. To improve the performance company should
motivate their employees to work ethically which includes no alternation in the real figures of
balance sheet provided by company itself, profit and loss account should be made without any
influences of seniors as it will leads to healthy working environment at the workplace. Few
points which should be followed by every employees in organization is honesty, loyalty towards
company they are working, objectivity, integrity etc (Burmeister, 2017). Sustainability is
important for any company to improve profitability and productivity in the future.
4.2: Responsibilities of finance professionals in upholding the principles of sustainability
Finance professional should have proper knowledge and skills required to attain their
goals in work assign to them. Employees should be self motivated for individual learning as it
will help them in future to tackle critical situations. Proper strategy should be use by company
while providing confidential data and information regarding company to the finance
professional. If they suspect any unethical working in their company than proper actions should
be taken by them to prevent their company for any frauds or crime like money laundering,
terrorist funding etc in future. If all the finance professional and company is doing there work
ethically with full honesty then company will attain their vision before the set deadlines
(Koehler, 2015).
Conclusion
From the above report it can be concluded that working ethically is important for employees and
company as it will help them to increase their profitability and efficiency. Code of conduct or
guidelines should be clearly stated to the employees and their working and if they find any
suspicious activities then they should report to the authorize person to prevent them from any
misshapen. Before reporting any activity, employees should collect all the data and evidence
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which is related to the unethical practices. Various strategies should be made by companies to
avoid any unethical practices within the company.

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References
Books and Journals
Astronomer, M., 2017. Suspicious gifts: bribery, morality, and professional ethics. Routledge.
American Library Association, 2016. ALA code of ethics.
Bond, T., 2015. Standards and ethics for counselling in action. Sage.
Brecher, B., 2014. What is professional ethics?. Nursing ethics.21(2). pp.239-244.
Burmeister, O. K., 2017. Professional ethics in the information age. Journal of Information,
Communication and Ethics in Society.15(4). pp.348-356.
Cohen, A. I., 2016. Ethics and professional practice. In Practicing Professional Ethics in
Economics and Public Policy(pp. 237-244). Springer, Dordrecht.
Davies, P. W., 2016. Current issues in business ethics. Routledge.
Frederickson, H. G. and Rohr, J. A., 2015. Ethics and public administration. Routledge.
Gillam and et. al., 2014. The role of emotions in health professional ethics teaching. Journal of
medical ethics.40(5). pp.331-335.
Jindal-Snape, D. and Hannah, E. F. eds., 2014. Exploring the dynamics of ethics. Policy Press.
Khalili and et. al., 2016. Comparative Study on the Effect of Professional Ethics Education
Using Two Methods, Group Discussion and Multi-Media Software on the Knowledge
of Nursing Students. RESEARCH JOURNAL OF PHARMACEUTICAL BIOLOGICAL
AND CHEMICAL SCIENCES.7(4). pp.2776-2781.
Koehler, W., 2015. Ethics and values in librarianship: A history. Rowman & Littlefield.
Macaulay, M. and Arjoon, S., 2014. An Aristotelian-Thomistic approach to professional ethics.
Journal of Markets & Morality.16(2).
Popovski, V., 2016. International rule of law and professional ethics. Routledge.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Wachs, M., 2017. Ethics in planning. Routledge.
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