Professional Ethics in Business

This assignment delves into the importance of professional ethics in a business environment. It highlights key ethical principles such as objectivity, adherence to laws and regulations, and the responsibility for safeguarding customer data. The text emphasizes the need for businesses to conduct themselves ethically when interacting with customers, suppliers, colleagues, and other stakeholders.

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 affecting the accounting and finance sector.....5
1.3 Role of professional bodies in relation to accounts and finance sector................................5
1.4 Explain why individuals, organisations or industry sectors are expected to operate within
codes of conduct and practice.....................................................................................................6
1.5 Explain the risks of improper practice to an organisation and the importance of vigilance. 6
1.6 Opportunities to maintain continuing professional development in line with requirements
of professional bodies.................................................................................................................7
TASK 2............................................................................................................................................7
2.1 Explain how to act ethically when working with clients, suppliers, colleagues and others..7
2.2 Explain the importance of objectivity and maintaining a professional distance between
professional duties and personal life at all times........................................................................8
2.3 Explain the importance of adhering to organisational and professional values, codes of
practice and regulations ..............................................................................................................8
2.4 Explain the importance of adhering to organisational policies for handling clients’ monies
.....................................................................................................................................................9
2.5 Identify circumstances when confidential information should be disclosed and who is
entitled to the information...........................................................................................................9
2.6 Explain the importance of working within the limits and confines of one’s own
professional experience, knowledge and expertise...................................................................10
TASK 3.........................................................................................................................................10
3.1 Identify the relevant authorities and internal departments to whom unethical behaviour,
breaches of confidentiality........................................................................................................10
3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence............................................................................................................11
3.3 Identify inappropriate client behaviour and how to report..................................................11
3.4 Explain the internal and external reporting procedures......................................................11

3.5 Outline strategies that could be used to prevent ethical conflict.........................................12
TASK 4..........................................................................................................................................12
4.1 Explain the importance of an ethical approach to sustainability.........................................12
4.2 Outline the responsibilities of finance professionals in upholding the principles of
sustainability.............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Professional ethics are the main principles which are govern or regulate the individual
behaviour and large group of people within the business environment. It is provide some rules
and regulation which required to be followed by all employees in better manner. Professional
ethics are encompass with personal and corporate standard of behaviour that are expected by
professional people (American Library Association, 2016). The report is based on HSBC bank
which is international banking and financial service provider holding company. It is the largest
bank and it is situated in United Kingdom. The main motive of this assignment is to describe
different fundamental principle of ethical behaviour and also identify relevant legal and ethical
requirement which directly affects on accounting sector. Along with this, it will evaluate the
importance of organisational policies for handling client monies in proper way.
TASK 1
1.1 Fundamental principles of ethical behaviour
Ethical behaviour is concerned with doing the right thing and adhering to professional
standards. It is characterised by honesty, fairness, dignity, and equity among individuals.
Principles of ethical behaviour
 Integrity- It implies to be straight forward and honest in all business relationships in
carrying day to day finance transactions.
 Professional and technical competence and due care- Maintaining professional
knowledge and the skills required to ensure that employer receives competent services
on current development practices, legislation and techniques that are in accordance with
the applicable technical and professional standards.
 Confidentiality- To maintain confidentiality of information and maintain business
relationship, employee should not disclose such information to third parties without
approval of specific authority or without a legal or professional right to disclose, nor use
the information for personal advantage (Burmeister, 2017).
 Professional behaviour- To comply with relevant laws and regulations to avoid actions
that disregards profession. Individuals when performing accounts and finance
transaction have to comply with certain accounting standards for effective performance.

 Objectivity- It allows not be bias, or indulge in conflict of interest to override business
and professional judgements.
1.2 Legal, regulatory and ethical requirements affecting the accounting and finance sector.
Individuals in organisation are required to comply with the certain legislations which
includes prescribed laws and regulations. Organisations need to determine their legislative
obligations in order to comply with standards.
 Money Laundering- It is the act of concealing profits in the company from illegal
activities and corruption. Bank capture refers to technique of money laundering where
use of bank is owned by money launderers who move funds through banks without fear
of investigation.
 Data protection- It is the process of safeguarding crucial information about corruption.
It helps to increase amount of data created and stored and grows at a high rate.
 Fraud- It is an unethical practice undertaken by organisation to manage or gain high
profits by violating code of conduct (Davies, 2016).
This all practices are affecting the working of accounts and finance operations in HSBC bank.
1.3 Role of professional bodies in relation to accounts and finance sector.
Professional bodies is an organisation with individual members practising a profession
in which respective organisation maintains oversight of knowledge, skills and practice of that
profession.
 Promoting ethical behaviour- Ethics are very important in relation to high standard of
ethical behaviour from its members. HSBC bank should be aware of the standards they
should adopt while conducting business operations.
 Assurance of the services of their members- When organisation comply to ethical
standards it assures long term service of their members and their skills and knowledge
increases in finance sector as they work with ethical accounting principles.
 Continuing Professional Development (CPD) - It is the process of documenting and
tracking skills and knowledge when individual gains formally while working.
Professional bodies help in continuously development of employees at HSBC bank by
providing them proper knowledge to perform work.

1.4 Explain why individuals, organisations or industry sectors are expected to operate within
codes of conduct and practice
Code of practice presents standards of conduct expected by member to support
economic, social and political integrity. In general it is a set of standards adopted to govern the
conduct of a group of people.
Importance of code of conduct for individuals- It helps the individual to learn what to
do and what not at workplace. It help employees at HSBC to clearly follow rules and regulation
determined to set standards and function accordingly (Emmerich, 2016).
Importance of code of conduct for organisation-Organisations or individuals who
follow code of conduct help them to regulate business with fair practices and becomes socially
responsible for society and work is done by organisation which doesn't harm society.
Importance of code of conduct for industry-Industry who maintains code of ethics can
reduce financial risks associated with government fines for ethical misconducting and prevent
illegal acts.
1.5 Explain the risks of improper practice to an organisation and the importance of vigilance
The main risk associated with HSBC bank with context to improper practice are as
follows-
 Strategic risk- The risk here is that company strategy becomes less effective and
struggles to reach goals. If the HSBC bank doesn't comply with the technological
changes and uses unethical software in its accounting work it will lead to face risk in
formulating strategies to be ahead of competitors.
 Compliance Risk- HSBC bank has to comply with different laws and regulation as it
operates in UK has to full fill its norms and obligations. If the organisation doesn't
comply with rules and regulations required to run its operations it faces compliance risk.
 Operational Risk- It results in unexpected failures in company's day to day operations
because of linking to unethical practices in conducting work (Kangasniemi, Pakkanen
and Korhonen, 2015). HSBC bank will face problem in daily finance transactions if not
comply with regulatory standards.
In context to organisation vigilance is keeping a eye on personnel activities and taking
actions to promote fair practices and ensures integrity in official behaviour.
Vigilance helps the organisation in following ways-

 Reforming systems and procedures and spreading awareness of corruption and
promoting healthy growth.
 Enhancing image of the respective company by avoiding unethical practices.
 Promotes transparency and accountability in order to avoid confidentiality.
 Reducing wastage and leakage of company information.
1.6 Opportunities to maintain continuing professional development in line with requirements of
professional bodies.
Continuing professional development is a means of ensuring that members of specified
profession maintain their expertise in their field of knowledge by keeping in line with recent
developments (Kearney-Nunnery, 2015). It is the role of professional bodies who provide
expertise knowledge to provide technical and professional knowledge in accordance with the
specific professional standards.
Different types of training and CPD opportunities- Job Rotation- It is the systematic movement of employees from one job to another
within organisation to provide training to employees, enhance their career development
and prevents job boredom. This all help employees in learning to new standards and
practices.
 Short courses- These courses are designed for continuous professional development to
develop individuals skills in variety of courses which would help employees in
accounting and finance sector to work professionally in day to day operations of bank.
These all opportunities of continuous professional development help HSBC to regulate its
financial operations professionally.
TASK 2
2.1 Explain how to act ethically when working with clients, suppliers, colleagues and others
It is required for an organisation is to behave good and satisfying their all requirement
while doing working with customers, suppliers, colleagues and others. To became a responsible
business manager, the main motive of them is to get highest standards of ethical business
practices with everyone who will work within an enterprise.
 They should treating all staff members fairly and without any discrimination and also
give respect or dignity.

 It will ensure that all the areas of business operate healthy and secure environment for
their employees, visitors and suppliers.
 This is considered as ethical and environmental duties in all activities or functions that
includes sourcing suppliers who are belong to local areas (Louwers And et. al., 2015).
 It is not purchasing from any organisation whose goods and services through exploitation
of child labour, providing an unfair wages or salary in poor working conditions and any
other violations of employees and human rights.
2.2 Explain the importance of objectivity and maintaining a professional distance between
professional duties and personal life at all times
The significance of objectivity refers as an individual action and activity which is
observed as right or wrong, regardless of the condition or some consequences. This is mainly
concentrate on major rules and regulations for governing that are considered to be right, wrong
and obligatory. There are various ways through which a person can easily maintain equal balance
between personal and professional life.
Try to separate work and free time – In the age of online learning and
telecommunication, they can easily spend whole time at home and get everything done. It is
required for a person is to separate their work and free time which help in easily performing
daily functions or activities. An individual need to relax at their home so this will help in ready
for next day with fresh mind. Also it is the main responsibility of a person is to make their family
happy as well as office staff.
Set priorities – The main objective of a person is to set their priorities which help them in
selecting important things to do at first (Lurie and Mark, 2016). For successful connection
between personal and professional life, an individual require to understand and evaluate their
major priorities.
2.3 Explain the importance of adhering to organisational and professional values, codes of
practice and regulations
The main importance of adhering to professional standards is that they promote and
guide the working of day to day operations of bank and have a significant impact on career
success. Code of conduct clarifies organisations mission, values and principles and linking it
with standards of professional conduct. This all help in day to day transactions of business
effectively especially finance and accounts sector who deals in money transactions on daily

basis. It helps to complete work in context to code of conduct and maintains professionalism in
its business. It help the employees to deal with ethical dilemma that are encountered while
working on accounting principles.
2.4 Explain the importance of adhering to organisational policies for handling clients’ monies
Policies are the course of action or guidelines to be followed while handling business
operations. It provides clear guideline of resource index as well as bank rates are clearly
provided so to avoid discrepancy of work in HSBC. It provides proper guidelines for handling
customer complaints regarding banking transactions to resolve customer grievances. When bank
work in accordance with certain guidelines and comply to certain standards it helps to function
properly in context to standards (MacKinnon, 2017). Policies are prepared in such a manner that
provide maximum and efficient returns to customers and provide employees certain standards of
carrying day to day business transactions.
2.5 Identify circumstances when confidential information should be disclosed and who is
entitled to the information
Confidentiality is the protection of personal data and information in better manner. It
means keeping customers or clients information among organisation and customer and does not
telling to others includes colleagues, family, friends and so more. Along with this, it is refers as
personal information and data which is shared with professional, therapist and physician and
other persons which can not disclose to the third parties without expressed mutual understanding
of clients.
In HSBC bank, all department have major responsibility which ensure that every staff
member, workers and visitors entitled with work and participate in every activity or functions. In
current time period, rapidly increasing in litigious and highly competitive work place and
confidentiality is essential for an individual due to fail to secure and safe the customers details
and personal information. This will assist in developing and building trust and it is allow to free
flow of accurate information and data between clients and employees and acknowledge that
clients personal life and all issues related which they are belong to them.

2.6 Explain the importance of working within the limits and confines of one’s own professional
experience, knowledge and expertise
When HSBC bank employees work within the boundaries of ones own professional
experience skills and knowledge they tend to have following advantages.
 Generation of new ideas- Employee’s when work with its own knowledge tend to
create more ideas of working than depending on other's ideas (Pope, 2016). This help to
sharpen one's own skill which is mostly important in handling banking transactions at
HSBC.
 Confidentiality of information- When employees work individually at specified task it
helps to maintain confidential information in organisation itself rather than sharing of
information to outside people. This is beneficial at HSBC bank who maintains
information of bank within organisation and helps to sustain long run.
 Resolving conflicts- It helps in resolving conflicts among individuals when employee
uses own ideas it doesn't lead to conflict and helps in achieving productivity. This is
beneficial at HSBC bank where there is no space for conflicts in handling finance
transactions.
TASK 3
3.1 Identify the relevant authorities and internal departments to whom unethical behaviour,
breaches of confidentiality
It is necessary for an organisation is to report their organisation unethical behaviour,
breaches of confidentiality and illegal actions in better manner. The internal department play an
important role in managing and maintaining business operations as well as their employees in
effective manner. An organisation are given report to different internal HSBC company
individual which includes fraudulent officer, money laundering officer and many more. It is
required for manager is to know their fraud manager which help in identify major issue and
problems which occurs within firm (Rohr, 2017). They are recognise an individual unethical
behaviour and unnecessary actions which are arise within an organisation. The code of practices
should make an individual positive, good in attitude and ethical behaviour. Also they are identify
money laundering activities which considered as illegal acts which are performed by an
individual in the company.

3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence
In order to increase employee’s competence beyond their capacity organisation should
provide training facilities to its employee’s to increase and expand their skills and knowledge to
work with great motivation and satisfaction (Burmeister, 2017). HSBC should provide
compensation and reward benefits according to their work done . This would motivate
employees at HSBC to work with great enthusiasm and increase productivity of organisation.
Training would increase their skills to work beyond with their capacity and would enhance
effectiveness of their work. These practices at HSBC would increase employee capacity.
3.3 Identify inappropriate client behaviour and how to report
In the workplace, inappropriate behaviour can interfere with work flow and it may keep
to carry out heir roles and responsibilities. This type of behaviour lead towards lower morale,
absenteeism, reduction in productivity (Weil, 2015). It is determine that employees behaviour is
simply annoying and actually inappropriate when they are deal with other person. There are
some activities which are seen as unethical behaviour of clients and customers such as bullying,
emotional abuse and disruptive behaviour. Some of the clients are behave in such manner so they
does not get any respect from organisation employees. They need to follow method and
procedure of unethical behaviour activities to make compliant of any person related to
organisation. After that employees are reporting their unethical behaviour actions to the head of
management who are taken action in corrective manner.
3.4 Explain the internal and external reporting procedures
An organisation can conduct such reporting for evaluating employees and other person
unethical behaviour and illegal actions Internal reporting is the vital element of smoothly running
of business operations and its functions but in most of the organisation, it is full of issues and
challenges which includes versioning overlap and manual procedure. In an organisation, internal
reporting is done by their own manager which are analysing their issues and problems and try to
solve it in their personal way. On the other hand, external reporting is the issuance of financial
statement to parties outside the reporting venture. The company recipients are mainly considered
as investors, creditors, lenders and outsiders which require to get real information in evaluating
financial situation of reporting ventures.

3.5 Outline strategies that could be used to prevent ethical conflict
There are various strategies which help HSBC company in protecting and preventing
their employees with ethical conflicts among them. In this, they can set workplace conflicts or
disputes guidelines which should be followed an individual as well as firm workers while doing
work within an organisation (Weil, 2015). Workplace alternative is discovered personal clause
and lack of communication are the major causes of organisation conflicts. On the other hand,
company require to train their manager so they will handle and manage all business operations or
function in better manner. Along with this, managers are effectively handle and maintain all
issues which occurs within an organisation due to conflicts and disputes.
TASK 4
4.1 Explain the importance of an ethical approach to sustainability
In current time period, biological creatures get influenced by business like hunting,
agriculture, fishing etc. Natural ecosystem get influenced by business like mining, diverting
rivers, buildings, polluting natural resources. Awareness based ethics are important for business
means business should ensure natural conditions for living beings. Business should be
considered only if it has non-negative impact on planet, this can assure sustainability of business
in ethical way. Ethics can be considered as a term of development which means generosity of
desirable values that will benefit people to accomplish good actions (Burmeister, 2017). Ethical
approaches protect people from corrupt business practices. Ethical sustainability will define and
manage social development and caring for planet and people.
4.2 Outline the responsibilities of finance professionals in upholding the principles of
sustainability
In an organisation, finance team is responsible for various factors which are described as under:
 They should apply strong financial practices in order to ensure transparency in financial
dealings by using appropriate control over accountability.
 They are required to understand and follow regulations, laws and trade agreements of
particular country.
 They are involved in analysing, formulating and decision making to identify and remove
any kind of financial issue.
 If conflicts arise,they are required to take legal and financial advices (Weil, 2015).

 They should be clear with applicable laws and requirements of all communities, markets
and locations in which organization is running their business.
 They are also responsible for security of customer data and safeguarding the privacy.
CONCLUSION
From the above mentioned, it can be analysed that Professional ethics are the main
principles which are govern or regulate the individual behaviour and large group of people
within the business environment. It is required for an organisation is to behave good and
satisfying their all requirement while doing working with customers, suppliers, colleagues and
others. The significance of objectivity refers as an individual action and activity which is
observed as right or wrong, regardless of the condition or some consequences.

REFERENCES
Books and journals
American Library Association, 2016. ALA code of ethics.
Burmeister, O.K., 2017. Professional ethics in the information age. Journal of Information,
Communication and Ethics in Society. 15(4). pp.348-356.
Davies, P.W., 2016. Current issues in business ethics. Routledge.
Emmerich, N., 2016. Reframing research ethics: Towards a professional ethics for the social
sciences. Sociological Research Online. 21(4). pp.1-14.
Kangasniemi, M., Pakkanen, P. and Korhonen, A., 2015. Professional ethics in nursing: an
integrative review. Journal of advanced nursing. 71(8). pp.1744-1757.
Kearney-Nunnery, R., 2015. Advancing Your Career Concepts in Professional Nursing. FA
Davis.
Louwers, T.J. And et. al., 2015. Auditing & assurance services. McGraw-Hill Education.
Lurie, Y. and Mark, S., 2016. Professional ethics of software engineers: An ethical framework.
Science and engineering ethics. 22(2). pp.417-434.
MacKinnon, F.B., 2017. Contingent Fees for Legal Services: Professional Economics and
Responsibilities. Routledge.
Pope, K.S., 2016. The code not taken: The path from guild ethics to torture and our continuing
choices. Canadian Psychology/Psychologie canadienne. 57(1). p.51.
Rohr, J., 2017. Ethics for bureaucrats: An essay on law and values. Routledge.
Weil, V., 2015. Engineers and Business Ethics. Wiley Encyclopedia of Management, pp.1-2.
Online
Professional Ethics. 2018. [Online]. Available through:
<https://www.iaa.govt.nz/for-advisers/adviser-tools/ethics-toolkit/professional-ethics-
and-codes-of-conduct/>.