Assignment on Professional Ethics

Professional Ethics

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Fundamental principles of ethical behaviour...................................................................4
1.2 Legal, regulatory and ethical requirements that affect accounting and finance sector....5
1.3 Role of professional bodies in relation to accounting and finance sector........................5
1.4 Reason about expectation to operate business within code of conduct and practice.......6
1.5 Risk of improper practice within an organisation and importance of vigilance...............6
1.6 Opportunities for maintaining an up-to-date knowledge of changes...............................7
TASK 2............................................................................................................................................7
2.1 Way to work ethically when working with clients, suppliers, colleagues and others......7
2.2 Importance of objectivity and maintaining a professional distance between professional
responsibilities and personal life............................................................................................7
2.3 Importance of adhering to organisational and professional values, codes of practice and
regulations..............................................................................................................................8
2.4 Importance of adhering to organisational policies to handle clients money....................8
2.5 Circumstances when confidential information should be disclosed ................................8
2.6 Importance of working within limits and confines of own professional experience,
knowledge and expertise........................................................................................................9
TASK 3............................................................................................................................................9
3.1 Relevant authorities and internal departments to which unethical behaviour, breaches of
confidentiality.........................................................................................................................9
3.2 Action to take in instances when requests for work are beyond the employee’s competence
................................................................................................................................................9
3.3 How to report inappropriate behaviour of client............................................................10
3.4 Internal and external procedures to be followed for stopping illegal and unethical practices
..............................................................................................................................................10
3.5 Strategies used to prevent ethical conflicts....................................................................11
TASK 4..........................................................................................................................................11
4.1 Importance of an ethical approach to sustainability.......................................................11

4.2 Responsibilities of finance professionals in upholding the principles of sustainability.11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
INTRODUCTION
Professional ethics are the principles that regulate the behaviour of a person or a group in
a business environment. This provide rules on how a person should act towards other people and

institutions in such environment. People associated with organisations should behave ethically
when dealing with internal and external clients. The present report is based upon HSBC Bank
PLC, which is one of the largest financial and banking sector organisation of the world. The
report is focussed on the concept of ethical principles which are needed to be followed by
individuals dealing in organisations (Baase, 2012) . The main aim of this unit is to describe
importance of working within ethical code which in context with accounting and finance
professionals. Along with this, the ethical behaviour that is required to be maintained when
working with internal and external customers is discussed. Furthermore, the ethical responsibility
of finances professional is discussed in relation to promotion of sustainability.
TASK 1
1.1 Fundamental principles of ethical behaviour
Ethics is a branch of philosophy dealing with what is morally right or wrong. Code of
ethics referred as main aspects to control behaviour of professionals who are associated with an
organisation (Fundamental principles of ethical behaviour, 2016). In banking and financial
sector, a professional is required to follow certain principles which regulate their ethical
behaviour in business environment, these are mentioned below - Integrity – A professional should be honest and having strong moral principles, or moral
uprightness. It is a personal choice to hold one's self to consistent standards. In
ethics, this is regarded as the honesty and truthfulness or accuracy of one's actions. Objectivity - A professional must be unbiased towards an activity or situation.
Professionals in finance sector especially auditors must avoid conflicts of interest as
failure to remain independent and objective sometime hamper their status (Cheng, 2012) .
Therefore, they must follow ethical values of objectivity and independence. Professional and technical competence and due care - Professionals are required to act
patiently and possess such skills and knowledge that makes sure that the clients get
competent professional services which are based on the present developments in
legislation and practice. Professional behaviour - A professional is required to comply certain laws and
regulations appointed by government or other legal bodies while conducting operations
and avoid any act that defames their professional ethics.