Professional Ethics and Conduct: A Report on the Finance Sector

This report delves into the realm of professional ethics, specifically within the context of the finance sector, using Lloyds Banking Group as a case study. It begins by outlining the fundamental principles of ethical behavior, emphasizing integrity, objectivity, and professional competence. The report then examines relevant legal, regulatory, and ethical requirements impacting the accounting and finance sector, highlighting the roles of professional bodies in upholding these standards. It evaluates how individuals and organizations are expected to adhere to codes of conduct, and explores the risks associated with improper practices, stressing the importance of vigilance. The report further addresses ethical conduct in interactions with clients, suppliers, and colleagues, emphasizing objectivity and maintaining a professional distance. It also discusses adherence to organizational policies, handling confidential information, and working within one's professional boundaries. The report also covers reporting unethical behavior, addressing inappropriate client conduct, and outlining strategies for preventing ethical conflicts. Finally, it underscores the importance of an ethical approach to sustainability and the responsibilities of finance professionals in upholding these principles.

Professional Ethics

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Fundamental principles of ethical behaviour........................................................................1
1.2 Relevant legal, regulatory and ethical requirements affecting the accounting and finance
sector...........................................................................................................................................2
1.3 Role of professional bodies in accounting and finance sector..............................................2
1.4 Evaluate individuals, organisations or industry sectors are expected to operate within
codes of conduct and practice.....................................................................................................2
1.5 Risks of improper practice and the importance of vigilance.................................................3
1.6 Identify opportunities for maintaining an up-to-date knowledge of changes to codes of
practice, regulation and legislation affecting the accounting and finance sector........................3
TASK 2............................................................................................................................................4
2.1 Explain how to act ethically when working with clients, suppliers, colleagues and others..4
2.2 Explain the importance of objectivity and maintaining a professional distance between
professional duties and personal life at all times........................................................................4
2.3 Explain the importance of adhering to organisational and professional values, codes of
practice and regulations...............................................................................................................5
2.4 Explain the importance of adhering to organisational policies for handling clients’ monies
.....................................................................................................................................................5
2.5 Identify circumstances when confidential information should be disclosed and who is
entitled to the information...........................................................................................................5
2.6 Explain the importance of working within the limits and confines of one’s own
professional experience, knowledge and expertise.....................................................................6
TASK 3............................................................................................................................................6
3.1 Identify the relevant authorities and internal departments to which unethical behaviour,
breaches of confidentiality, suspected illegal acts or other malpractice should be reported......6

3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence..............................................................................................................6
3.3 Identify inappropriate client behaviour and how to report it................................................7
3.4 Explain the internal and external reporting procedures which should be followed if an
employee suspects an employer, colleague or client has committed, or may commit, an act
which is believed to be illegal or unethical.................................................................................7
3.5 Outline strategies that could be used to prevent ethical conflict...........................................7
TASK 4............................................................................................................................................8
4.1 Explain the importance of an ethical approach to sustainability...........................................8
4.2 Outline the responsibilities of finance professionals in upholding the principles of
sustainability...............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Professional ethics refers to behaviour of individual which is expected by them to
maintain its dignity to meet with corporate standards. It is considered as the acceptable behaviour
person who works in corporate world by following its professional values and guidance
(Prakasha and Jayamma, 2012). Present report is based on Lloyds Banking Group, a British
Financial Institution which was founded in 2009 and headquartered in London, United Kingdom.
This report is going to discuss about certain principles of ethical working and code of conduct. It
also elaborates of about ethical behaviour of individual while dealing with customers. Further it
briefly describes about different action which are required to be taken while following breaches
of ethical codes. At last, this report covers ethical responsibility of finance professional in
promoting sustainability.
TASK 1
1.1 Fundamental principles of ethical behaviour
Every profession has its own ethics as well as principles which guides them to perform
their business activities in effective manner. It has been observed that there are certain
fundamental of principles which are required to be owned by professional while executing their
business activities
Integrity: It is termed as the quality of honesty and moral values. In relation to
professionals it is required by them to remain straightforward while performing their job roles in
respective field.
Objectivity: This principle emphasis on not permitting bias behaviour while taking
professional decision. For example, an professional belongs to accounts department should
release funds according to its requirement not according to their personal relationship.
Professional and technical competence and due care: It is important for every
professional to update their knowledge and skill according to developed technology in order to
deliver best services to customers.
Confidentiality: This principle bind professional to maintain confidentiality of
information which is going to be used by them in their professional job role.
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Professional behaviour: It is expected by professional to avoid those legal laws and
regulation which might affect their profession. This will help in maintaining their professional
behaviour within working environment.
1.2 Relevant legal, regulatory and ethical requirements affecting the accounting and finance
sector
There are numerous of legal laws, regulatory and ethical needs which influences overall accounts
as well as finance sector. Most important of them are described as below:
Civil Law: This law is basically protecting right of individual with the help of some
rules. This law protect individual belongs to finance sector from contracts, torts and property
(Forster, 2012). According to this law, individual who comes under this are not punished they
only have to give compensation to other party. It can be said that this law is
Criminal Law: Criminal law is basically including overall activities which are illegal
and considered as criminal activities. As per this law, culprit is highly punished and also have to
pay compensatory amount.
Compliance: It is considered as the activity which states that individual is willing
performing their job responsibility in the pattern in which they are asked to perform it.
1.3 Role of professional bodies in accounting and finance sector
Every professional who belongs to accounting and finance sector have to play certain
roles in their field. It has been analysed that major role of these professional includes appointing
chief executive, governing whole organisation (giving approval for yearly budgets and
representing company's performance to stakeholder at regular basis) and managing compensation
of working staff. It can be said that another role of professional bodies related to finance sector is
analyse financial health of company in order to check its sustainability at market place
(Muirhead, 2012). They also gives guidance to other department in terms of effective utilization
of financial resources in their own field.
1.4 Evaluate individuals, organisations or industry sectors are expected to operate within codes
of conduct and practice
Code of conduct refers to set of rules and regulation which are formulated by
organisation. This regulations are required to be followed by employees in their working
practices. It is expected by every individual to perform their business activities within code of
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conduct of organisation. In relation Lloyds Banking Group, it is important for its employees to
follow these conduct in order to support political, economical as well as social integrity of
business. Along with this, it also enhances number of opportunities for existing working staff as
they work in the same direction according to guidance of company. In context to organisation,
expectation of code of conduct and practices can be seen in the way of maintaining
confidentiality and safety of employees as well as consumer (Marcuse, 2015). This important
because of them are core requirement of company. For this, it is expected by organisation to
make sure their employees work in ethical working pattern.
1.5 Risks of improper practice and the importance of vigilance
Improper working practices within Lloyds Banking Group leads to initiating various kind
of operational risk which impacts negatively over its growth. Along with this, it also generated
some more risk that is related to accounts department like money laundering and terrorist
financing of the chosen organisation. These risks are described below:
Type of Operational risk: It has been seen that operational risks are of many type which
generally occurs in company when its employees executes some unethical practices. In context to
Lloyds Banking Group, the company can face some operational risk like internal fraud (Assets,
bribes, loss etc.), damage of physical assets, external fraud (theft, hacking, cheque fraud etc)
Money laundering: It is considered as the illegal activities like corruption which can be
seen criminal activity that places negative impact over Lloyds Banking Group's reputation.
Terrorist financing: It is the another important risk which might impact organisation. In
this, it is mandatory for Lloyds Banking Group to do not avail fund to terrorist as it might
become big problem for them as well as their employees.
As per the above specified risk which might be faced by Lloyds Banking Group due to its
improper practices, it can be said that impact of this these can be reduced by adopt vigilance.
Vigilance is considered as essential managerial function that protects firm from internal threats.
1.6 Identify opportunities for maintaining an up-to-date knowledge of changes to codes of
practice, regulation and legislation affecting the accounting and finance sector
The Continuous professional development is defined as the method of ensuring that
members who are involved in the profession should have proper knowledge about the
development. It is the duty of the Professionals to give proper training in relation with the
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desired professional standards. The different modes of CPD opportunities and training are
evaluated below as:
 Job Rotation is defined as shifting of employees from their role to other role in order to
promote them and enhance their carrier development opportunities (Khanifar, Jandaghi
and Bordbar, 2012). This is beneficial in order to adopt new opportunities for employees.
 The short courses programmes are designed in order provide training to employees so
they can become familiar with the working environment thus easily performing all the
daily banking transactions.
TASK 2
2.1 Explain how to act ethically when working with clients, suppliers, colleagues and others
It is important of senior management to provide guidance to its employees regarding
ethical behaviour. It can be said that this guidance will help employee to understand how they
should work with clients, suppliers, colleagues and other business related person. It has been
analysed that employees should provide good quality product to its clients according to their
requirement. Along with this, it is mandatory for company to avail same product at similar
pricing range to every client with being bias to them. In relation to supplier it important for
company to pay their due amount within specified payment date. Ethical behaviour with
colleagues includes reflecting respect to them as well as their work. It can be said that positive
ethical behaviour of organisation helps them in building their positive image among customers as
well as other business related person that contributes in achievement of targeted goals and
objective.
2.2 Explain the importance of objectivity and maintaining a professional distance between
professional duties and personal life at all times
Business organisations are required to enhance their sustainability at marketplace, for this
these companies formulates their objectives which are required to be achieved by them within
given time frame (Mohajeran, 2014). Importance of objectivity can be seen in the thought of
organisation to make goals which are beneficial for both employees as well as company. It can
be said that it is important for employees to maintain a professional distance between
organisation job roles and their personal life as it is beneficial for them to work with free mind at
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work. It has seen that employees who do not mix professional as well as personal life are more
successful as compared to those one who mixes both the life's.
2.3 Explain the importance of adhering to organisational and professional values, codes of
practice and regulations
Lloyds Banking Group is considered among top financial institution of United Kingdom.
The company owns some organisational and professional values which are highly important for
its growth. Its value includes the concept of providing best financial services to its customers so
that they can satisfy their needs and desires accordingly. Along with this, the company believes
in providing simple services to the customers which helps them in using it on their own level
without indulging much people for the same. It can be said effective values, code of conducts
and regulations helps Lloyds Banking Group in achieving its targeted goals and objectives within
less period of time. It also helps in increasing influence of customers towards them.
2.4 Explain the importance of adhering to organisational policies for handling clients’ monies
Policies of organisation related to clients money are highly important as they gives
assurity to customers that what so ever circumstances takes place, bank will always remain loyal
with them and also keep safe. In relation to Lloyds Banking Group, the company is providing hi-
tech security within bank premises that helps in securing and preserving money client in the
bank. Apart from this, policies of company also includes that money will be lend to only those
one who can return it within the preset time frame (Cheng, 2012). This clearly states that, it
reduces impact of being fraud in future. As a result, it shows that money of client will kept safe
within bank premises.
2.5 Identify circumstances when confidential information should be disclosed and who is entitled
to the information
Information of employees as well as customers are highly confidential which cannot be
revealed to anyone. In relation to Lloyds Banking Group, top management of this financial
institution are very strict and do not release information of client to any external. But still there
are some cases in which bank have to break their laws and share same with someone. It has been
analysed that Lloyds Banking Group is disclose its information in case of death of account
holder. In his case, organisation only share confidential detail with the nominee by verifying its
legal identity. Along with this, another case can be seen in terms of involvement of account
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holder in any illegal activity. In both the cases individual who is using information is entitled to
it that is nominee and police.
2.6 Explain the importance of working within the limits and confines of one’s own professional
experience, knowledge and expertise
Every person has its own working pattern and limits which influences its working
practices. It can be said that an professional who belongs to accounts field is required to have
understanding of their limits, knowledge, expertise and experiences. This is considered as an
opportunity for specified individual as it helps them in performing their work within same
criteria which minimises the chances of mistakes (Hannafey and Vitulano, 2013). In context to
Lloyds Banking Group, top management of this company provides work to accounts department
according to their knowledge and expertise which helps them in performing their similar work in
effective manner.
TASK 3
3.1 Identify the relevant authorities and internal departments to which unethical behaviour,
breaches of confidentiality, suspected illegal acts or other malpractice should be reported
In relation to finance sector, it is important for employees to observe overall unethical
behaviour, suspected illegal activities and breaches of confidentiality. This observance is further
reported to senior management of bank that is branch manager as they are only one who are
authorised to it and can take required decision. It can be said that senior management owns
overall liberty to take effective decision which will help them in maintaining reputation of their
company among employees and customers both.
3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence
It is important for every organisation to take some required actions for the employees
when they are not able to perform their assigned work. In context to finance sector there are
certain kind of situation when employees are not able to perform their job responsibilities. In this
case, top management of company can change roles and responsibilities of the employees with
which they are not feeling comfortable. Apart from this, employee can also change their team if
they are comfortable with the team members.
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3.3 Identify inappropriate client behaviour and how to report it
There are number of situations which are faced by business organisation when they are
interacting with customers or clients at regular basis. Because, many times clients are not
behaving properly with attending employees. This demotivate employees as they feels helpless.
In this regard, it is required by employee to understand that when customers are misbehaving to
them and after analysing it is important for employees to report for the same to their senior
authority. Further, it is the responsibility of senior authority to understand employees perspective
and take preventive action for the same.
3.4 Explain the internal and external reporting procedures which should be followed if an
employee suspects an employer, colleague or client has committed, or may commit, an act
which is believed to be illegal or unethical
Every organisation has its own reporting procedure which is required to be followed by
the one who is going to complaint. It can be said that many employees observes that ethical
activities are being executed within the organisation only by their client, colleagues, top
management and other related person (Shahriari and Baloochestani, 2014). In his case, it is
required by that person decide how they can report to the similar issue to company by following
internal as well as external reporting procedure. Both of them are described as below:
Internal reporting procedure: It is required by employees to report in below presented
structure
 Firstly report to Line Director
 If action is not taken that then report to Chief executive officer
 Final reporting is done to Chair person as they are the only one who can take final
decision.
External reporting procedure: It is methodologies which is used by employees when
internal decision are not taken effectively and employees feels to take external help. In this case,
employees can take external help from police. This will help them in achieving taking preventive
help within the time only.
3.5 Outline strategies that could be used to prevent ethical conflict
The situation of ethical conflict arises when employees of an organisation takes an
inappropriate decision regarding their clients and sometimes it also happens, when an employee
does not follow ethical code of conduct in its assigned task. There are many strategies for chosen
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organisation Lloyd Banking group to prevent their business operation from ethical conflicts like,
they should provide appropriate training sessions to their employees for working in ethical way.
In addition to this, they should try to solve unethical behaviour by discussing directly to their
clients and employees. It is also essential for Lloyd Banking group to set limits for their
employees to perform the given tasks in ethically.
TASK 4
4.1 Explain the importance of an ethical approach to sustainability
Ethical approach to sustainability in an organisation refers to deliver financial services
with a motive to achieve societal responsibilities. In this context, it is essential for the chosen
organisation Lloyd Banking group to operate their business operations in a manner that does not
affect the environment or society in a negative way. There are many ways to operate business
activities like fulfilment of societal objectives, working in accordance with the laws and
legislations and to treat their colleagues, client and suppliers in ethical way, it should be done by
treating them fairly (Han, Park and Jeong, 2013). It will also helps clients of the chosen
organisation Lloyd Banking group in protecting their account information efficiently, which
leads in sustaining its productivity in a dynamic business environment.
4.2 Outline the responsibilities of finance professionals in upholding the principles of
sustainability
Finance professionals are the one who contributes majorly in maintaining sustainability
of company. It has analysed that there are various kind of roles and responsibilities which are
played by finance professionals. As per evaluation, mainly it is observed that these professionals
are promoting ethical work by following each and every legal laws related to their department in
order to maintain its sustainability. Along with this, these finance professionals also analyse cost
effective corporate social responsibilities which helps them in upholding principles of
sustainability as these similar activities can be used in developing sustainability of financial
institution.
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CONCLUSION
As per the above mentioned report, it has been concluded that professional ethics are
expected behaviour of individual which is required to be meet up with their corporate
responsibility. It can be said that ethical behaviour of person plays essential role in the growth of
his career as well as organisation. It has been observed that there are numerous of legal laws
which are formulated for helping individual when are not able to manage with unethical
activities. Along with this, it has been analysed that it is important for professional to keep their
professional as well as personal life separate in order to execute their business related activities
effectively.
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REFERENCES
Books and Journals
Prakasha, G. S. and Jayamma, H. R., 2012. Professional ethics of teachers in educational
institutions. Artha-Journal of Social Sciences. 11(4). pp.25-32.
Forster, D. J., 2012. Codes of Ethics in Australian Education: Towards a National
Perspective. Australian Journal of Teacher Education. 37(9). p.n9.
Muirhead, W., 2012. When four principles are too many: bloodgate, integrity and an action-
guiding model of ethical decision making in clinical practice. Journal of Medical Ethics.
38(4). pp.195-196.
Marcuse, P., 2015. Gentrification, social justice and personal ethics. International journal of
urban and regional research. 39(6). pp.1263-1269.
Khanifar, H., Jandaghi, G. and Bordbar, H., 2012. The professional and applied ethics
constituents of IT specialists and users. European Journal of Social Sciences. 27(4).
pp.546-552.
Mohajeran, B., 2014. Structural modeling of relationship between professional ethics and
spirituality at work with social responsibility among nurses in the public hospitals in
Kermanshah city. Quarterly Journal of Nursing Management. 3(2). pp.20-29.
Cheng, Y., 2012. Further discussion on the construction of ethics of professional
accountants. International Journal of Business Administration. 3(3). p.28.
Hannafey, F. T. and Vitulano, L. A., 2013. Ethics and executive coaching: An agency theory
approach. Journal of Business Ethics. 115(3). pp.599-603.
Shahriari, M. and Baloochestani, E., 2014. Applying professional values: the perspective of
nurses of Isfahan hospitals. Journal of medical ethics and history of medicine. 7.
Han, J. Y ., Park, H. S. and Jeong, H., 2013. Individual and organizational antecedents of
professional ethics of public relations practitioners in Korea. Journal of business
ethics. 116(3). pp.553-566.
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