Professional Ethics Report: Ethical Conduct in Finance

This report on professional ethics in the accounting and finance sector explores fundamental principles such as integrity, confidentiality, and professional behavior. It outlines relevant legal, regulatory, and ethical requirements affecting the sector, including civil law and codes of practice. The report examines the roles of professional bodies, risks of improper practices like money laundering and terrorist financing, and the importance of vigilance. It also covers opportunities for maintaining up-to-date knowledge of changes in codes and regulations. The report emphasizes ethical conduct with colleagues, suppliers, and clients, highlighting the importance of objectivity and maintaining professional distance. It discusses adhering to organizational and professional values, policies for handling client monies, and circumstances for disclosing confidential information. Additionally, the report addresses identifying inappropriate client behavior, reporting procedures, strategies for preventing ethical conflicts, and the importance of an ethical approach to sustainability. The report concludes with a discussion of the responsibilities of finance professionals in upholding sustainability principles.

Professional Ethics

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Fundamental principles of ethical behaviour:.......................................................................1
1.2 Outline the relevant legal, regulatory and ethical requirements affecting the accounting
and finance sector:.......................................................................................................................2
1.3 Role of professional bodies in relation to the accounting and finance sector:......................2
1.4 Why individuals, organisations or industry sectors are expected to operate within codes of
conduct and practice:...................................................................................................................3
1.5 Risks of improper practice to an organisation 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:.......................4
TASK 2............................................................................................................................................4
2.1 How to act ethically when working with colleagues, suppliers and clients:.........................4
2.2 Importance of objectivity and maintaining professional distance between professional
duties and personal life: .............................................................................................................5
2.3 The importance of adhering to organisational and professional values, codes of practice
and regulations:...........................................................................................................................5
2.4 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:..........................................................................................................6
2.6 Importance of working within the limits and confines of one’s own professional
experience, knowledge and expertise:.........................................................................................6
TASK 3............................................................................................................................................7
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:.....7
3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence:.............................................................................................................7
3.3 Identify inappropriate client behaviour and how to report it:...............................................7
3.4 internal and external reporting procedures:...........................................................................8

3.5 Outline strategies that could be used to prevent ethical conflict:..........................................8
TASK 4............................................................................................................................................9
4.1 Explain the importance of an ethical approach to sustainability:.........................................9
4.2 Responsibilities of finance professionals in upholding the principles of sustainability:......9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Professional ethics are rules that regulate the behaviour of a group and persons in the
environment of business. Professional ethics gives rules that how an employee should behave
and act I an organisation with their managers, colleagues, co-workers etc. Ethical principles
include honesty, respect for others, loyalty, accountability, doing good, adherence to the law,
trustworthiness etc. In this report include, fundamental principles of ethical behaviour such a
integrity, confidentiality, professional behaviour etc. and relevant ethical, regulatory and legal
needs which affect the financial and accounting sector. Roles of professionals bodies, risks of
improper practices to an organisation and opportunities for maintaining the up-to-date
knowledge, codes of practices. In this considered the importance of objectivity, codes of
practices, regulations and organisational policy(Biedenweg, Monroe and Oxarart, 2013). In this
also includes circumstances when confidential information should be disclosed and importance
of working within the limits and scope of the professional knowledge and experience.
They considered how identify client behaviour and how to report it. Internal and external
reporting procedure and strategies which could be used to prevent ethical conflicts. At last they
include importance of an ethical approach to sustainability and the responsibilities of finance
professionals in upholding the principles of sustainability.
TASK 1
1.1 Fundamental principles of ethical behaviour:
Ethical behaviour is a new area of scientific social research that want to interpret how
individuals really behave when meet with dilemmas of ethical. It defines behaviour of people
that is evaluate as per to mostly accepted standard of behaviour. Ethical behaviour attends to be
best for an organisation and include exhibit respect for fundamental moral principles which
involve individual rights, dignity, honesty, diversity, equality and fairness. There are some
principles of ethical behaviour which are as follows:
Integrity: It is a behaviour of being genuine and having strong uprightness morale and
principles of moral. Its a personal choice in which a person can doing proper manner in right way
with other persons. It is behaviour based moral excellence in which include honesty, accuracy,
truthfulness of an individual.
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Objectivity: It is a philosophical system of being real independently from respective
judgement caused by imagination, emotions, perception. Scientific objectivity defines to the
capability to judge without external influence and partiality.
Technical and professional competence and due care: A professional controller has a
continuing responsibility to keep professional skill and knowledge at the level need to assure that
employer and client acquire effective professional services based on present developments in
techniques, legislation, practices(Desposato, ed., 2015).
Confidentiality: It refers that protection to the personal information. Confidentiality
means secure the information of their employees, clients etc. and not disclose the information
regarding them to others like friends, peers, co-workers etc.
Professional behaviour: It is a form of rule in the organisation which is connected
primarily to courteous and respectful conduct. Being intended of how employees treat clients and
co-workers and assuring a effective workplace attitude can support the employees to enhance
their effectiveness and productivity in the organisation.
1.2 Outline the relevant legal, regulatory and ethical requirements affecting the accounting and
finance sector:
Ethics and legal aspects is necessary to adopt by financial and accounting sector. It is the
behaviour of accounting professionals in which ethics develop their career. Strong regulatory and
legal basis provide conceptive ground for growth and establishment of the financial and
accounting sector. In this include many legal laws and regulation which are as under:
Civil law: This law is a body of rules which protects and describe the rights of the public.
Civil law's main role is to solve conflicts and provide compensation to a person who is injured by
other person's behaviour.
Codes of practices: Codes of practices support local authorities to maintain the advanced
achievable regulation in financial reporting accordant with international financial reporting
standards(DiBiase and et. All., 2012). It is a set of rules and regulations that describe how
individuals perform in a specific profession.
1.3 Role of professional bodies in relation to the accounting and finance sector:
There are many professional accountancy bodies which taken the duty of self-regulation
under the profession. All professional bodies have own set of needs of entry for membership.
Proof of a relevant training, evidence and qualification of experience in the occupation are
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needful. CIPFA lead professional body for services of public in both private and public sector. A
competent professional body in accounting and financial business in an priceless assets to the
business. Their experience in accounting modify them to choose a objective and pragmatic
approach methods to solving problems. Accountants with the significant duty of conveyance the
ethical promises, skills and knowledge to the profession to the future generation(Doukas,
McCullough and Wear, 2012). In this include many roles of the professional bodies in the
accounting and financial sector such as protector of public interest, promoting professional
accountants, competing demands etc. professionals are helps in business to decrease cost and
improve their mitigate risks and top line, provide advice and help in corporate strategy.
1.4 Why individuals, organisations or industry sectors are expected to operate within codes of
conduct and practice:
Ethical practices and codes are fundamental principles which is choose by individuals
and industries to improve their profession, demonstrate their fairness and honesty, maintain
public trust. Individuals wants to improve their codes of practices by choosing ethics principles
which enhance their morale in the workplace. They want to increase their integrity,
confidentiality and professional behaviours. Code of practices give practical guidelines for
persons who want to work in safety and health duties. Code of practices and conducts set the
standard of their works and environment. Industries, individuals and sectors wants to operate
their business and behaviour in the code of practices because they maintain morale and ethics of
the workplace as well as their employees. Code of practices learn people to how doing work in
the workplace for being professional and improve their behaviour.
1.5 Risks of improper practice to an organisation and the importance of vigilance:
There are many risks of improper practices which are as follows:
Money laundering: Money laundering is an activity of making the occurrence that big
amount of money acquire from criminal action like arise from a legitimate source, terrorist
activity, drug trafficking. One difficulty of criminal actions is accounting for the issues without
increasing the intuition of law enforcement bureau(Engel and Prentice, 2013). Appreciable time
and effort can be set into strategies that change the safe use of these issue without increasing
abdicable belief. Applying that strategies is specifically known as money laundering.
Terrorist financing: Terrorism actions take place in various variety ranging from
separated acts to preset action of organized groups. The kind of financing of terrorism is consist
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not only the financing of the terrorist actions so much, but also help to the network of criminal.
Terrorist organisations needs important funding for the actual proceeds of actions of terrorist and
other related issues.
Due diligence: It is an audit and investigation of expected investments and ware to
sustain all facts like reviewing all deemed material and financial records. It defines to the tending
a reasonable person must take before entrance into a financial transaction and an agreement with
third party.
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:
In an organisation, when professionals are update their knowledge on regular basis, then
they can develop their own self and their career which also influence the skills of employees and
organisation can easily achieve the growth. Professionals have advance skills which helps them
to changes the regulations, codes of practices and legislation which influence the financial and
accounting sector in effective manner.
TASK 2
2.1 How to act ethically when working with colleagues, suppliers and clients:
Professional behaviour: Professional behaviour is a kind of rule in the workplace that is
connected principally to courteous and respectful conduct. Professional behaviours mean,
behaviour with honesty, respect ,integrity etc. with their clients and suppliers in an organisation
in which they understand properly and doing work effectively. There are some components from
which act ethically with clients, colleagues and suppliers are as under:
Honesty: Always secure the client and confidential information to anyone and behave
with integrity and openly with others.
Respect: Maintain a respectful behaviour with others and even in the stressful time. Don't
disrespect to anyone and use proper words and language while talking to them.
Safeguarding: It means protect the rights, well-being and health of people which allow
them to live free from neglect, harm and abuse. Employees should know about their limitation of
act, means behave with also safely with their colleagues, clients etc.
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2.2 Importance of objectivity and maintaining professional distance between professional duties
and personal life:
Objectivity is captious in the workplace in respect to maintain workers loyalty and to
avoid ethical disputes (Whicher and et. all., 2015). Complete objectivity can be challenging for
adhesive organisations, managers must seek to create decisions based on irrefutable and clear
information. Objectivity in the work place means using unbalanced and fair criteria for devising
decisions involvement company and employees problems. Importance of objectivity is that get
rid of decision based on culture differences, personal bias. This main importance is that it helps
in investigations, performance evaluations, consequences and maintain professional distance
between professional duties and personal life.
2.3 The importance of adhering to organisational and professional values, codes of practice and
regulations:
Organisational and professional values and code of practices is essential for maintaining
discipline at the workplace. If organisation meet with professional behaviour and values, then
they growth very fast because professionalism. Professional's behave with their employees in
polite manner and with respect which impress and motivate the employees for better
performance of work. An organisation's code of ethics, conduct and outlines the regulation of
behaviours for management team, vendors and employees. This performance describe
unacceptable and acceptable act in a variety of conditions with the purpose of keeping the
organisation's legal and integrity compliance(Fisher, 2013).
2.4 Importance of adhering to organisational policies for handling clients’ monies:
Policies are essential in an organisation as it assist clarify and reinforce the standards
hoped-for of workers and support employers maintain personnel more effectively as it describe
what is unacceptable and acceptable in the organisation.
Well-written policies of organisation aim to support business in various manner. Policies
present that the company is being direct in an effective and efficient manner, ensure consistency
and increase stability in the operational and decision-making procedures. Policies are also
advantageous in helping employers support themselves in an biased liability claims, OHS
prosecution and dismissal claim. The importance of organisational policy is to handling clients'
monies which are as follows:
 Set out best practices for handling the monies of clients'.
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 Assure that employees and clients interpret the risks associated with employees
handling money of client.
 Assure workers take suitable steps in handling a money of clients to support to
obviate a possible misunderstanding and disagreements and secure the interest of
client.
2.5 Identify circumstances when confidential information should be disclosed and who is entitled
to the information:
In an organisation, managers should maintain personal and confidential information of
workers and clients. They have power to secure the privacy of every employee and client. They
can give information to those who have legitimate and authorised ground to have data only when
they have approval from that employees and clients(Timmermann, Uhrenfeldt and Birkelund,
2017). There is a statute law to secure the rights and there are terrible outcomes for breaching
this. However, there are some conditions in that the managers can disclose the information
relating to the clients to the related authority(Frank, 2013).
 When the client interest in revelation is more than the client interest in privacy,
then in this condition information can be disclosed.
 Consent is explanation for revelation.
 Revelation of anonymised data does not specifically need client permission,
unless it is possible to determine the client.
2.6 Importance of working within the limits and confines of one’s own professional experience,
knowledge and expertise:
Working in with their limits are important for an organisation and their managers and
employees. Ensure that employees have distinctly interpreted the limits of their role and work in
which they are authorised and able to do work. Managers should know that which employee
doing which types of work in the organisation. If employees work properly in their authorised
work with maintaining the morale and ethics of the company, then organisation can also
maintain their value and standard in the environment and can easily achieve the organisational
goals.
professional expertise are essential as all professionals require to have a advanced degree
of knowledge in their particular job field for enhance their development of career and to impact
commoner of their occupation to have belief in their approach of profession. Professionals have
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more knowledge and advanced skills and expert in a specific field which develop their all over
career as well as growth of their organisation. They work in expert manner which is profitable
for a company in which they easily achieve the goals.
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 an organisation, if any unethical issues are arises such as malpractices, illegal acts,
breaches of confidentiality and unethical behaviour, then it should be reported and complained to
top authority of the organisation which is deals with those unethical practices and solve them and
punish that persons who conduct this types of practices in the organisation. Organisation should
maintain ethics and morale in the workplace in which unethical practices can be eliminated and
reduced.
3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence:
In an organisation, if any client give any project and task to the employees which is
beyond the employee’s competence and ability then employee can take against that work to their
managers and directors for solving these issues(Jiménez-López and et. All., 2016). Employees
give their best to the company but sometimes client requirements are beyond the lines which is
can't properly maintain and perform by the employee, then they complain their staff managers
and main directors of the company who solve their problems by delegating those employees'
work to the other expert employees or convey to the client.
3.3 Identify inappropriate client behaviour and how to report it:
There are some inappropriate behaviour of clients which can be identify by these terms
which are as follows:
 Aggressive and angry communication.
 Unwanted attention.
 A statement about harm.
 Stalking.
 Sexual harassment.
 Harm to people and damage property.
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 Any act of property damage and physical violence.
All behaviours are indicate the inappropriate behaviour which can be report to the top authority
of the organisation who take actions against the client.
3.4 internal and external reporting procedures:
When any misconduct and unethical practices are arises in and with the company and
which is identify any managers and employees and any other person in the company, then they
can take actions against them. They follow internal and external reporting procedure(Lamont,
Jeon and Chiarella, 2013) .
Internal reporting procedures: If any unethical practices are arises in the company then
employees can report and complain their executives managers , their team leader, staff managers
etc.
External reporting procedure: if any unethical issues are arises in the external
environment, then people can complain of them to related authorities and police department
which take legal action against those person.
3.5 Outline strategies that could be used to prevent ethical conflict:
In an organisation, when employees work together, then conflicts are arises between
them. For solving conflicts among them managers many strategy to solve their conflicts and
maintain proper work environment of the company. There are some strategy for reduce the
ethical conflicts at workplace are as follows:
Set guidelines of workplace conflicts: In this, managers should develop the guidelines of
ethics and morale in which employees have to set their limits and behaviour in those guidelines.
If they behave beyond that guidelines, then they responsible of punishment. These guidelines and
strategy can reduced the ethical conflicts at the workplace(McDougall, Notini and Phillips,
2015).
Clarify priorities: in this, managers should be clarify the priorities of the employees and
should understood them that which type of work is perform by them. So, employees do not fill
the partiality at the workplace.
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TASK 4
4.1 Explain the importance of an ethical approach to sustainability:
Business ethics rendering a possible framework of analytical through that measure
practices of management in sustainability and general in particular. If ethical environment is best
of the company then it maintain its standard in the market. Professional and expert managers can
maintain their employees behaviour and their morality at workplace(Robertson, Rose and
Kesselheim, 2012) . For maintaining the good ethics, they should adopt different approaches
like virtue approach, utilitarian approach, good approach, communitarian approach,
deontological approach etc.
4.2 Responsibilities of finance professionals in upholding the principles of sustainability:
The principles can get a specific functional meaning in respect to specific aspect of the
economy, improvement issues, investment guidelines, business strategies and initiative taken by
financial professionals. There are some principles which are as under:
 deals with substance issues considering governance, integrated, sustainability,
and externalities reporting.
 Includes the wide range of finance rendering an incorporated view on insurance,
banking, investing.
CONCLUSION
From the above given report it has been concluded that ethical behaviour can improve the
morale of an organisation. Professional ethics maintain the behaviour of others which is very
effective and profitable for an company. Company should adopt the principle of ethics to learn
the value and actions. Managers should be behave in honest and respect manner with their
employees to maintain dignity and professionalism. If human resource of a company work
ethically, then company can maintain their morale and standards in the environment.
Confidential information should be protect by the managers of their employees and clients. An
effective policy can maintain the ethics of an organisation which previously set the rules and
regulations for working environment.
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REFERENCES
Books and Journals:
Biedenweg, K., Monroe, M. C. and Oxarart, A., 2013. The importance of teaching ethics of
sustainability. International Journal of Sustainability in Higher Education. 14(1). pp.6-
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Desposato, S. ed., 2015. Ethics and experiments: Problems and solutions for social scientists
and policy professionals. Routledge.
DiBiase, D. and et. all., 2012. The GIS professional ethics project: Practical ethics for GIS
professionals. Teaching geographic information science and technology in higher
education, pp.199-209.
Doukas, D. J., McCullough, L. B. and Wear, S., 2012. Perspective: Medical education in medical
ethics and humanities as the foundation for developing medical professionalism.
Academic Medicine. 87(3). pp.334-341.
Engel, J. and Prentice, D., 2013. The ethics of interprofessional collaboration. Nursing ethics.
20(4). pp.426-435.
Fisher, M. A., 2013. The ethics of conditional confidentiality: A practice model for mental health
professionals. Oxford University Press.
Frank, A. W., 2013. The wounded storyteller: Body, illness, and ethics. University of Chicago
Press.
Jiménez-López, F. R. and et. all., 2016. Values in nursing students and professionals: An
exploratory comparative study. Nursing ethics.23(1). pp.79-91.
Lamont, S., Jeon, Y. H. and Chiarella, M., 2013. Health-care professionals’ knowledge, attitudes
and behaviours relating to patient capacity to consent to treatment: An integrative
review. Nursing ethics. 20(6). pp.684-707.
McDougall, R., Notini, L. and Phillips, J., 2015. Conflicts between parents and health
professionals about a child’s medical treatment: using clinical ethics records to find gaps
in the bioethics literature. Journal of bioethical inquiry. 12(3). pp.429-436.
Robertson, C., Rose, S. and Kesselheim, A. S., 2012. Effect of financial relationships on the
behaviors of health care professionals: a review of the evidence. The Journal of Law,
Medicine & Ethics. 40(3). pp.452-466.
Timmermann, C., Uhrenfeldt, L. and Birkelund, R., 2017. Ethics in the communicative
encounter: seriously ill patients' experiences of health professionals' nonverbal
communication. Scandinavian journal of caring sciences. 31(1). pp.63-71.
Whicher, D. and et. all., 2015. The views of quality improvement professionals and comparative
effectiveness researchers on ethics, IRBs, and oversight. Journal of Empirical Research
on Human Research Ethics. 10(2). pp.132-144.
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