Professional Ethics Report: Principles and Practices in Finance

This report delves into the realm of professional ethics within the accounting and finance sectors, offering a comprehensive overview of ethical principles and practices. It begins by defining professional ethics and its significance, emphasizing the importance of integrity, objectivity, professional competence, confidentiality, and professional behavior. The report outlines relevant legal, regulatory, and ethical requirements, highlighting the role of professional bodies in maintaining standards. It explores the risks of improper practice, the necessity of vigilance, and opportunities for staying updated on industry changes. Furthermore, it examines ethical conduct with clients, suppliers, and colleagues, stressing objectivity and the separation of personal and professional life. The report also covers reporting unethical behavior, handling competence limitations, and addressing inappropriate client conduct, as well as strategies to prevent ethical conflicts. Finally, it underscores the importance of an ethical approach to sustainability and the responsibilities of finance professionals in upholding sustainability principles.

Professional Ethics

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 fundamental principles of ethical behaviour.........................................................................4
1.2 Outline the relevant legal, regulatory and ethical requirements affecting the accounting
and finance sector........................................................................................................................5
1.3 Explain the role of professional bodies in relation to the accounting 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 Identify opportunities for maintaining an up-to-date knowledge of changes to codes of
practice, regulation and legislation affecting the accounting and finance sectors......................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....8
practice and regulations...............................................................................................................8
2.4 Explain the importance of adhering to organisational policies for handling clients' monies
.....................................................................................................................................................8
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.....................................................................9
TASK 3..........................................................................................................................................10
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....10
3.2 Identify the appropriate action to take in instances when requests for work are beyond. . .10
the employee’s competence......................................................................................................10

3.3 Identify inappropriate client behaviour and how to report it.............................................11
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...............................................................................11
3.5 Outline strategies that could be used to prevent ethical conflict.........................................11
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..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Professional ethics is defined as a principle which govern the behaviours of a group of
individual in an organisation. It also assists management in resolving the problem which are
arises in the atmosphere of a firm. In addition to these, values and beliefs are the foundation of a
firm that decide the growth and sustainability in marketplace. Present assignment will discuss
about fundamental principle of ethical behaviour along with integrity and objectivity. Relevant
legal, ethical requirements, role of professional bodies, risks of improper practice and
opportunities of practice or regulation will also covered in this report. It also includes the
understanding of ethical behaviour when an organisation is working with internal and external
environment. This report will also covers the importance of objectivity along with adhering to
organisational policies and working within limits, professional experience. In this report we will
also covered importance of ethical approach in sustainability of firm.
TASK 1
1.1 fundamental principles of ethical behaviour
Fundamental principles are defined as a code of ethics that are essential for following by
the organisation because it decide the future growth of an organisation. There are principles of
ethical behaviour which are explained as under:
 Integrity – It is a principle that defines to be straightforward and honest in workplace
because all the relations of an organisation are depends on it. In addition to this, it is a
quality which build morale of principles in workplace. In ethics, it is related with honesty
and trustworthiness in atmosphere of a firm.
 Objectivity – This principle is connected with the employees it defines that they should
not depends on single opinion (Sobhani, 2015). They have to analyse the conditions and
take decisions accordingly.
 Professional Competence and Due Care - It is the principle which maintains
professional knowledge and skills of the employees as per the level of organisation due to
which customer get services in effective manner.
 Confidentiality – It is related with securing the information in order to maintaining the
relations. Furthermore, any information is not delivered to the third parties until a

authority is not given to the employees for sharing. The information of organisation
should be in confidential nature because any person can take personal advantage from it.
 Professional behaviour – it is defined a morale and standard of work in workplace, this
principle defines the various laws and legislations which are created for maintaining a
good environment in workplace.
1.2 Outline the relevant legal, regulatory and ethical requirements affecting the accounting and
finance sector
Strong legislations and ethics provides foundation to the establishment of an financial
organisation. Accounting legislation provide international standard in the organisation so that,
they can easily understand their goals and define the responsibilities to their employees. When
the goal are defined to the organisation they can easily get efforts from their staff members.
Regulatory is playing crucial part in development of an organisation because it provide functions
to the firm in terms of setting their standard as per regulations such as professional certifications,
quality services, training and development certifications (Solbrekke, 2011). These are the
mandatory part of an accounting firm through which they can easily operate their functions.
There are various nations who are growing in current scenario because of their
regulations. Nations who have limited legislations they can adopt law and order of other nation
in order to build overall growth of nation. Regulations also provide assistance to stakeholders
due to which they can easily invest their funds in order to developing the nation. These
regulations gave support in advancement of accountancy and technical aid to developing clear
frameworks.
1.3 Explain the role of professional bodies in relation to the accounting and finance sector
Accountants have responsibility to maintaining the valuable details of the individuals and
organisation. They have to deal with various customers because they are representing the firm.
They have duty of performing various transactions through which organisation build
sustainability and growth. In performing transaction they have to follow a strict guidelines
because with the help of it organisation build their brand image. Therefore, they perform their
functions in surveillance of management because it improves the market presence of firm.
Ethical codes are the essential principles that are utilise by the professional due to which
professionalism can maintained. With the help of it organisation will be trustworthy in the mind
of public and improve their brand image in marketplace. Employees who are working in the

company have the duties for protecting the financial details in order to maintain the reputation
and image of organisation. It is sad but true that there is no individual who perform their duty in
effective manner. Individuals who are breaking the rules and do not following the guidelines for
them, company have to adopt tough guidelines and a code of conduct which have to followed by
the employees. Through it organisation can get effective outcomes in near future.
1.4 Explain why individuals, organisations or industry sectors are expected to operate within
codes of conduct and practice
An organisation can not get success without the efforts of the employees. So, it is
necessary to create a code of conduct through which organisation maintains functions and
activities in a systematic method (Pope, 2013). In addition to this, these are the guidelines which
builds ethical standard for a firm in order to following them for getting growth and sustainability
in future. Accountant professional have to follow a strict guidelines because they provide
assistance to those individual who will providing revenue to the firm.
With the help of it, management of Norton finance can easily define roles and
responsibility to their employees so that, their employees will gave maximum efforts in assigned
task. In financial sector, Accountants are playing important role because as they are representing
the firm. So, they have to create financial report of individuals in effective manner because
customers are the precious assets of a firm if they will provide wrong details to the customers it
will gave wrong impact on the brand image of firm. Therefore, It can be said that a code of
conduct is important in the organisation due to which, employees understand their duty and
provide maximum efforts in growth of firm.
1.5 Explain the risks of improper practice to an organisation and the importance of vigilance
Unethical business practice is defined as the illegal activities which are connected with
not following of guidelines. Unethical practices are raised when an organisation achieving
growth or success in marketplace, during that time employees are not providing the efficiencies
which are essential for attracting customers. Due to this, organisation reduce their brand image in
the mind of customers. There are some important risks which impacts on the image of Norton
finance they are as follows:
 Terrorist funding- if organisation will provide funds in the terrorist activities it will be a
risk to the organisation in future time.

 Misusing company time – when employees doing their own tasks and not performing the
duties which are given by the management to them it will also categorised in risk for
organisation.
 Breaking the code of conduct – staff members are not following the guidelines of
organisation. It will also mention as a risk for the firm.
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 sectors
Having up to date knowledge and details regarding with modification in code of
practices, legislations and regulations provide influence in the finance sector. It is essential for
every firm to provide quality services to their customers. Modifications in regulations may gave
impact on the activities of firm in serious way. If management adopt such changes which are
made by the authorities they can easily get opportunities in various ways such as allocating
resources for the firm, healthy environment in workplace.
Through it, management of Norton finance will reduced the conflicts in the working
environment and they will expand their operational activities in new markets. It will assists in
enhancement of productivity and profitability of organisation It will also build morale and
confidence level in the employees due to which, they gave their maximum contribution in
growth of firm.
TASK 2
2.1 Explain How to act ethically when working with clients, suppliers, colleagues and others
Professional ethics are basically connected with the important decisions of management
of an organisation which is related with positive and negative impact of a decision. In the context
of Norton finance their decisions are created by the various shareholders of their organisation
such as suppliers and customers. Positive behaviour of employees and shareholders are necessary
for building a healthy environment in workplace due to which, conflicts will be not arose in the
firm and it will improve their confidence level (Phillips, 2013). Customer will also attracted
towards the organisation as their requirements will be fulfilled in effective manner. Organisation
have responsibilities to clear all the plans and policies to their shareholders which will help in
effective decision making. Respecting requirements of employees and providing them rewards

and compensation as per their work performance will build an effective culture in the
organisation and it will also increase interactions between stakeholders and organisation
2.2 Explain the importance of objectivity and maintaining a professional distance between
professional duties and personal life at all times
Objectivity is defined as various choices for a thing. In organisation, it is used as taking
decision without choosing a specific option. In other words, it provide assistance to management
for adopting biasness due to which, organisation can chose a suitable option for making
decisions. It is very essential for the organisations to take decisions without biasness because it
will improve the confidence level and morale in the employees.
Personal life and professional life will be separated in nature because of it, dissatisfaction
and demotivation in employees have increased so, according to code of conduct employees have
to maintain a distance between both lives (Lee, 2014). Which will help them in making decisions
in effective manner and they will gave maximum efforts in the assigned task. If their roles and
duties are clear they will gave more contribution in the growth of organisation.
2.3 Explain the importance of adhering to organisational and professional values, codes of
practice and regulations
Individuals are taking guidance from code of conduct because it defines role and
responsibilities to them due to which they can perform their duties in effective manner.
Organisations have to set a standard of expectations so that, employees will be aware from the
needs of management. It is possible through the help of Code of conduct. Whereas, If the worker
will not understand about their duties they can not perform well and organisation will lost their
loyal employees. Therefore, It is essential to maintain code of conduct in the organisation due to
which, employees will become loyal and motivated towards culture of organisation. Ethics are
not bind them in a complex structure it gave freedom to employees so that, they work freely and
perform well as per the expectations of management. Ethics are more helpful in increasing the
efficiency in employees therefore, they can not misuse the precious time of organisation through
this, firm can easily get competitive advantage in the marketplace.
2.4 Explain the importance of adhering to organisational policies for handling clients' monies
Monies of customer are defined as a money or set of documents that can be changed in
term of money as per the requirement of customers. If the guidelines and support will be in

effective manner than employees will gave more contribution in the growth of organisation. Due
to which, customer will create a good image of organisation in their mind and it will be
profitable for firm. Working as per regulations decides the sustainability and growth of firm in
marketplace and it also create a healthy environment in workplace. Employees feels secured and
protected in the Norton finance due to which, customer will also provide satisfaction to the
organisation. When employees will gave more effective services then issues of customer will
also resolved in less time. The cost of organisation will also reduced and they get effective
outcomes from their employees.
It will also assists management for taking feedback from the customers which improves the
services of organisation. Due to which, organisation will get competitive advantage among their
rivals and candidates will also attracted towards Norton in terms of becoming a part of it.
2.5 Identify circumstances when confidential information should be disclosed and who is entitled
to the information
Organisation have to follow their guidelines for getting effective outcome from their
employees. There are various conditions in Norton finance due to which, their management can
easily unwrap their private details to the governance they are as follows:
When it has a public duty to: It is connected with a harmful situation in which,
individuals require protections against crime. In the context of Norton finance, as they are
performing financial activities so, they have to gave privacy to their customers during the time of
providing details.
When a customer agrees- If a customer will agree to expose its details then bank have
no right to protect its details. Bank have duty to take consent from the customers when they will
disclose their informations to other parties. For e.g. a customer of Norton finance have gave its
consent to manager for providing details of an account to someone. but if the bank will release
the other account's information that it will gave a wrong impact on the relationship and it will be
proved as a breach of confidence level of customer towards organisation (Banks, 2012).
2.6 Explain the importance of working within the limits and confines of one’s own professional
experience, knowledge and expertise
It is very essential to making boundaries for the employees so that, they can set their
limits and provide efficiencies in their work without getting any stress or depression.
Management have to define task as per the capabilities of employees so that, employees will

work with efficiency and complete their task in given period of time. It will also increase the
productivity of firm and employees gave more focus on the work which will build strengthen of
organisation.
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
There are many unethical issues such as breach of important informations and illegal acts
which are performed by the various authorities in Norton finance ltd. Internal department of
organisation have responsibility to maintain a conflict free environment in the organisation so
that, workers of the firm will gave more contribution in assigned task (Phillips, 2013). Workers
of the firm will also provide report of such issues to the management of Norton. There are
various external agencies which are briefly explained as under:
 Public concern at work : It is a part of external agency who resolves the issues of
unethical behaviour of employees and also provide suggestions to the organisation for
improving the environment.
 The Labour Relations Agency – It is also an important part of external agency who
provides free advices that is related with the confidential reports and provide rights to
employees.
3.2 Identify the appropriate action to take in instances when requests for work are beyond
the employee’s competence
There are some actions which can be adopted by the organisation in order to increasing the
employee's competence:
 Collaboration – Management have to take support from the able staff members in
critical situations so that, they make effective decisions and organisation will get more
profitability.
 Communication – Management of organisation have responsibility to define all the
information in a proper way so that effective outcome will be collected in future period.
3.3 Identify inappropriate client behaviour and how to report it
There are several kinds of wrongful conducting of code that will arises in the
organisations that may be criminal offense, failure in adopting ethical issues, threats for safety

and health, unethical behaviour and breach of confidential reports etc. which will influence on
the reputation and brand image of an organisation. Such issues have to reported to the grievance
department, HR manager and other department will considering this kind of issues and they will
measure the performance of grievance department by evaluating the weekly cases. If grievence
officers are not performing their duty in well manner than HR department will take necessary
actions which is profitable for building a conflict free environment in the organisation. Through
this, employees will convey their informations and issues to right person in right way so that,
organisation will not face such kind of issues and employees will be motivated towards their
work (Solbrekke, 2014).
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
For conveying the information which is related with unethical behaviour or practice in
the organisation. Employees have proper proof about the informations of malpractice when they
are sure about it they have to expose it in front of an authorised person and the information must
be fulfils the requirements that are as follows:
 Employees have to sure about the information that is true and exposed in front of the real
or true person.
 Individual have to ensure about the details if it is exposed. Organisation have to get legal
advice from the legal persons and take suggestions for the effect and outcomes of it.
3.5 Outline strategies that could be used to prevent ethical conflict
There are some kind of strategies which can be implemented by organisation in order to vent
hole the ethical conflicts
 Know the law – By the help of this, organisation get various type of ideas which will be
helpful in resolving the conflicts of workplace. In it, employees can take actions towards
the management in terms of their termination and suspension.
 Set expectations : this part provide suitable plans and policies through which
organisation can easily set their expectations for the employees in order to getting
effective outcomes from them in future period.
 Provide training to employees – In order to getting sustainability and growth,
organisation have to provide better services to their customers. For this, organisation have

to provide training to their employees so they will gave more quality services to the
customers that will provide profitability to firm.
TASK 4
4.1 Explain the importance of an ethical approach to sustainability
If an organisation wants sustainability and growth in the marketplace they have to make
effective rules and regulations for their employees. Through this, an ethical environment will be
build with in the organisation and workers will gave efficiency in assigned task. It will also assist
management in removing conflicts from the organisation. It also helps in allocating the resources
which are necessary for the organisation. Therefore, It can be said that ethical guidelines are
providing a way to organisation through which, firm can get sustainability and growth in
marketplace in limited period of time (Qimin, 2013).
4.2 Outline the responsibilities of finance professionals in upholding the principles of
sustainability
Sustainably may be complex some time for the organisation because organisation have to
interrelate various departments in a proper way. Finance professionals who are expert in finance
sector gave efficiencies in their work so that, organisation will get sustainability in some time. It
is necessary to build cooperation in organisation because without cooperation conflicts will be
arise in the firm. A well organised strategy is created therefore, organisation will easily achieve
their goals in the given time period.
CONCLUSION
It has been concluded from the above report that Professional ethics are necessary for the
organisation so that, employees gave their efficiencies in assigned task. Management of Norton
Finance have to follow some rules and regulations so that, the confidential reports will be
secured in effective manner. Organisation have no right of leaking the information which is
related with an individual before exposing they have to take consent from the individuals.