An Analysis of Professional Ethics and Conduct in the Finance Sector

This report delves into the crucial realm of professional ethics within the finance sector, using Lloyds Banking Group as a case study. It examines fundamental principles such as integrity, objectivity, competence, confidentiality, and professional behavior. The report analyzes relevant legal, regulatory, and ethical requirements, including civil and criminal law, compliance, and codes of practice. It highlights the roles of professional bodies in promoting ethical conduct and the importance of codes of conduct within organizations. The report discusses the risks of improper practices, emphasizing the need for vigilance and outlines opportunities for maintaining up-to-date knowledge of ethical standards. Furthermore, it explores the significance of ethical behavior with clients, suppliers, and colleagues, stressing the importance of objectivity and professional boundaries. The report also covers the reporting of unethical behavior, internal and external procedures, and strategies for preventing 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 relation to the accounting and finance sector..................2
1.4 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 Opportunities for maintaining an up-to-date knowledge of changes to codes of practice4
TASK 2............................................................................................................................................4
2.1 Act ethically when working with clients, suppliers, colleagues and others.....................4
2.2 Importance of objectivity and maintaining a professional distance between professional
duties and personal life at all times........................................................................................5
2.3 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.............6
2.5 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 relevant Authorities and internal departments where suspected illegal acts or other
malpractice are reported.........................................................................................................7
3.2 Action to take in instances when requests for work are beyond the employee’s competence
................................................................................................................................................7
3.3 How to report inappropriate behaviour of client..............................................................7
3.4 Internal and external procedures to be followed for stopping illegal and unethical practices
................................................................................................................................................8
3.5 Strategies used to prevent ethical conflicts......................................................................8

TASK 4............................................................................................................................................8
4.1 Importance of an ethical approach to sustainability.........................................................8
4.2 Responsibilities of finance professionals in upholding the principles of sustainability...8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Professional ethics is said to be a core principle that is incorporated by any organisation
so as to govern the behaviour of a person or group who is working within the company (Bailey
and Burch, 2016). This present assignment has focussed on ethical principles that are required to
be undertaken while dealing with clients and other individuals. Therefore, Lloyds Banking
Group is taken for this report, which a major British Financial institution in United Kingdom.
Since its foundation in 1695, organisation is providing excellent services and facilities to its
customers. Therefore, with the help of this, importance of working within ethical code will be
analysed so as to have proper knowledge whether these are being followed or not. Apart from
this it will helps in highlighting different kinds of roles and responsibilities that are required to be
followed in order to perform all the actions in an ethical manner.
TASK 1
1.1 Fundamental principles of ethical behaviour
Professional ethics includes some kinds of behaviour that are expected by professionals
for maintaining corporate standards within the organisation. This includes elements such as
values, rules and regulations, behaviour towards other person etc., In terms of any financial
institutions code of ethics plays a crucial role and it needs to be understood for an effective
working. Thus, it can be said as professional ethics that are confined with some set rules and
regulations that can be applied in a group (Bogenschneider, 2015).
Integrity: This is stated as a quality of being honest, thus, an accountant who is working
in Lloyds Bank must be keep all the data and records of its clients confidential.
Objectivity: This is an independent factor that is formed by an individual on the basis of
perception, emotions and imagination. But employees who are working in financial organisation
should not be biased while taking any kind of decision just to entertain other professionals.
Professional and technical competence and due care: In order to provide effective and
effective services it is crucial that, in the accounting section of Lloyds Banks all the employees
are professional and skilled. They should be competent enough with technical standards so that
professional kind of services can be provided to its customers.
1

Confidentiality: Financial institution is a sector where there is a requirement of
maintaining secrecy for details of customers because this can create a severe problem for the
individual and bank as well (Davies, 2017).
Professional Behaviour: There are many rules and regulations which are to be followed
by employees who are working in a financial company. Professional behaviour is one of them.
This shows etiquette in workplace and represent respectful environment.
1.2 Relevant legal, regulatory and ethical requirements affecting the accounting and finance
sector
An accountant is said to be a person who keep a record of all the activities regarding
money that are received, paid, owned by a person or country. Thus, there are numerous rules and
regulations that must be undertaken by an accountant. Some of the laws are explained below for
better understanding:
Civil Law: In a working environment there might be a possibility that some small issues
and problems can arise thus, in such cases civil law is applied. Therefore, according to this law
culprit doesn't get any severe punishment for the activity he/she has done instead they are
suppose to pay compensations or fine for the deed they have done.
Criminal Law: In this, some serious kinds of allegations are included such as theft,
money laundering, bribe etc., therefore, if an individual is accused for the same than he/she can
be found guilty and punishment can be given for the same. In context with the sector of finance,
if such action is identified that strict actions is taken (Durkheim, 2018).
Compliance: In this, financial institutions without making any kind of compromises in
the legal authority perform their legal activities. Therefore, senior manager must sanction loans
for further procedure without compromising legal laws.
Code of practice: This is a set of written rules that explains how activity should be
performed within the organisation. For instance: keeping data and information secret is a code of
practice that should be followed by every employee within the organisation.
1.3 Role of professional bodies in relation to the accounting and finance sector
Work ethics is believed to be a feeling about how an individual is consider his/her job
and responsibilities. This majorly includes attitudes, behaviour, respect towards other individuals
etc., Therefore, having strong work ethics is very crucial for a person to motivate other
individual because it encourages him/her in doing their work properly and precisely as well. This
2

also helps in maintaining effective workplace where they can do their job with positive attitude.
Wherever employee is working, it is prime role of organisation to provide ethical culture and for
this, they can conduct continuous professional development programmes (Emmerich, 2016).
This will not only improves skills and knowledge of person but it will prepare them for their
future activities as well. Considering all these professional bodies must also think of providing
excellent services and facilities under disciplinary framework. This will help organisation in
promoting ethical behaviour and honesty amongst employees while working within the
organisation.
1.4 Individuals, organisations or industry sectors are expected to operate within codes of conduct
and practice
In order to operate business in an effective manner it is important that Lloyds Bank
includes Code of Conducts. As a result, this will aid company in performing their task ethically
in uncertain and difficult situations as well. Generally, ethics provides a guidance related to
values and behaviour of every individual. An organisation can be called as effective if they do
their actions without making any kind of harm to environment so as to achieve objectives and
goals in a speculated time frame.
Working ethically not only improves image of an organisation but it also aid financial
institution in increasing customer's loyalty for a longer period of time at global market.
Therefore, it can be said that code of conduct guides a person for how to perform within the
organisation (Farahani and Farahani, 2014).
1.5 Risks of improper practice to an organisation and the importance of vigilance
Vigilance is determined as a process in which superiors keeps an eye or put more careful
attentions to various activities so as to identify whether things are going goods or not. Thus, this
is an important act for a company in order to demonstrate fair practices going within the
organisation. In context with, Lloyds Banking Group company has made effective strategies and
policies for minimising unfair activities in the company.
While operating business there are many operational risk which can be followed by a
company that can further create issues and problem for the organisation as well. Operational risk
can includes certain factors such as inadequate procedures, system and policies etc., In relation
with Lloyds Banking Group, they must look after all such activities so that risks can be avoided.
3

Therefore, to understand this more operational risk of Lloyds Banking Group can be classified
into two categories and these are explained below:
External Fraud: In this, third party is responsible for fraud and unethical activities. This
can be done by hackers, cyber criminals etc.,
Internal Fraud: In this, fraud is being done by employees and other staff members who
are working within the organisation. They basically take confidential data and information of
clients and further their might be a possibility that it is being misused (Frederickson and Rohr,
2015).
Therefore, in relation to this, it is important for Lloyds Banking Group to take proper care
of all these unethical activities so as to protect confidential data from getting misused. Because
money laundering, transfer of funds can leads to promote terrorist activities.
1.6 Opportunities for maintaining an up-to-date knowledge of changes to codes of practice
Continuous development programme is determined as a process which is used for
analysing experience, skills and knowledge that is being acquired by an individual and needs to
be improved. In context with the sector of finance and accounting sector, Continuous
development programme can be used by professionals in order to improve its own performance
so that they can sustain in the market areas for longer period of time. Therefore, this kind of
programme aid organisation in analysing weak areas of employees so that training can be
provided for improving skills and knowledge. Furthermore, this will be very effective in
enhancing existing knowledge and executing the same according to job responsibility.
TASK 2
2.1 Act ethically when working with clients, suppliers, colleagues and others
In order to work in an organisation it is important that a person knows how to behave
ethically (Frost, 2015). Ethical behaviour is not confined with a person only, company must also
consider the same for operating its business in an effective manner. For example: if Lloyds
Banking Group, maintains this kind of environment than it can boost morale and confidence
level of a person higher. As a result, it enable employees in pushing their limits and providing
better outcomes. While working within an organisation it is important that a person works with
honesty and integrity so that unfair actions can be avoided. Considering this, Lloyds Banking
Group, treats its employees fairly without doing any kind of discrimination. Organisation are not
4

avoiding illegal activities such as child labour, illegal activities etc., Therefore, for all the
activities is building trust in amongst all the companies who are linked with Lloyds Banking
Group.
2.2 Importance of objectivity and maintaining a professional distance between professional
duties and personal life at all times
While working in an organisation it is crucial that professional and personal boundaries
are established because it helps employees in working in a systematic manner. Along with this, it
helps workers in protecting them from unethical, conflicting and unprofessional activities or
relationship. Professionals should behave like professionals only at workplace and they must
leave their un-professionalism behaviour at home. Therefore, a person should stay away fro
personal talks in order to maintain the decorum of the workplace (Knapp, VandeCreek and
Fingerhut, 2017). There are certain factors that must be avoided while discussion such as salary,
religious viewpoints, seeking for a new job etc., In addition to this, objectivity or doing personal
comments should be obviate so that better working environment can be maintained and
individual perform their job responsibility in an effective manner.
2.3 Importance of adhering to organisational and professional values, codes of practice and
regulations
Ethical behaviour helps in growth and development of a business and its operations in
Lloyd bank and also promotes a positive healthy work environment. Professionalism is an
approach or way in which people conduct themselves. Two main elements of professional
behaviour are respect for others as well as courtesy. Adhering or following organisational and
professional values, code of ethics are quite important in case of Lloyd is quite important due to
various reasons:
 Lloyd follows a strict code of ethics and hence has a well developed brand image.
 Customers also get satisfied that business concern is operating as per legal requirements.
This builds goodwill of Lloyd in competitive market .
 Lloyd always follows a policy where they are fair with their customers and transfer
almost all necessary details to their clients as well as regulatory bodies.
Hence, from the above stated reasons it can be said that following professional as well as
organisational values in important for Lloyd in providing it a competitive edge over its rival
firms (Percival, 2014).
5

2.4 Importance of adhering to organisational policies for handling clients’ monies
In context with Lloyds Banking Group, while running their organisation they are
following al the rules and regulations when they are handling their customers regarding money.
In terms of this company they have established high security gadgets within their building
premises which is enabling them in tracking illegal activities. Other than this, accounts
department of Lloyds Banking Group, have maintained transparency between clients which aid
clients in knowing their transactions and other activities such as what kind of schemes will be
beneficial for them. Accounts that are opened in this bank provides security related to fraud,
money laundering, theft etc., as a result, it is binding customers to remain with the Lloyds
Banking Group for a longer period of time.
2.5 Circumstances when confidential information should be disclosed and who is entitled to the
information
Banking sector is related to many confidential information which needs to be kept secret
and cannot be shared with any member. In context with professional accountant, it is their prime
duty is not disclose information without client's prior permission. But there can be some situation
when accountants have to reveal account details for instance: death of an account holder, in such
case accountant can provide details to its family members but there is a condition as well person
should be in the list of nominee provided by dead person when he/she is alive (Pope, 2016).
2.6 Importance of working within the limits and confines of one’s own professional experience,
knowledge and expertise
A person who is working in an professional area must know his/her limits because it is
beneficial for that person in performing their activity according to its skills and knowledge
acquired. In context to an accountant, if it will be aware about its expertise area they it can
perform its roles in an easy manned with less errors. On the other hand, it has been measure that
for accountant, knowledge is helpful in deliver the high quality of services to consumers which
minimize change of money laundering and thefts at the negotiable level.
6

TASK 3
3.1 Identify relevant Authorities and internal departments where suspected illegal acts or other
malpractice are reported
Each business firm face different types of problems which are concerned with
confidentiality breaches as well as unethical behaviour of staff members.
Serious Organised Crime Agency (SOCA): Under this, people can file their reports to
the Serious Organised Crime Agency that can resolve any problem concerned to serious crime
like leading of the confidential data. Details can be of any employee, consumers and company
that should be confidential and also can not leaded through other person (Sugarman, 2015).
Money Laundering reporting officer: In financial industry, staff member that observe
any illegal activity can report Money Laundering reporting officer as it is helpful in resolve any
problems with same industry.
3.2 Action to take in instances when requests for work are beyond the employee’s competence
Under this, it is necessary for top management of financial industry to determine that
staff are performing their roles and responsibilities in a proper way or not. Their responsibility is
to evaluate performance of employees along with know their problems and resolve them in an
effective manner. In addition to this, barriers can be arisen in the form of inefficient time, lack of
training, expertise knowledge etc. For make improvement in working capabilities of staff
members it is necessary for manager to conduct the training programmes for enhance their
knowledge, skills etc. related to financial industry. If in case staff is facing any issues in team
then it is important for the senior management to change team and provide comfortable working
environment.
3.3 How to report inappropriate behaviour of client
The first priority of Lloyd business firm is its customers but some of the times clients
took this priority negative and then misbehave with staff. This kind of behaviour occurs due to
thought of priority of Lloyd. In context to employees of the finance sector, it is necessary for
staff members that it can complain about misbehave of employees to senior. On the other hand, it
has been noticed that report can report can filed to committee that is implemented for staff
members in context to understand their issues (Swanson and Frederick, 2016). Reporting should
7

be files in formal manner with proper existing proof. It will be helpful for the staff members to
get proper justice at workplace.
3.4 Internal and external procedures to be followed for stopping illegal and unethical practices
For staff members, reporting is biggest issue as if they do not know actual process by
which they can file report. Under this, it has been observed that there are two different kinds of
reporting process which can adopted through staff members like internal and external. In context
to this, procedure of internal reporting consist reporting to top management and then file report
on the Crime Act 2002. This act is mainly developed for purpose of filing complaint related to
money laundering in financial institution. Further more, in procedure of external reporting,
accountant can go with legal authority as it can complain about any illegal activity to
government authority, so that it can take nay legal action against it with proper protection.
3.5 Strategies used to prevent ethical conflicts
Conflict refers to situation in which two or more than two people are not to be agreed on
similar topic. In context to ethical conflict, there are two people which disagree because of their
personal ethical values. Under this, accountants are those which interacts with many consumers
in regular time period and then get indulge in ethical conflicts. On the other hand, in order to
prevent ethical conflicts, Lloyd can make its own policy by consider its own ethical code of
conduct of the financial sector (Wachs, 2017).
TASK 4
4.1 Importance of an ethical approach to sustainability
There is a need to each business firm to adopt some of the effective approaches or
strategies in context to develop their sustainability at the market place. In relation to Lloyd, it can
adopt those approaches which can help it in influencing the interest of professional accountants
in order to sustaining them for long period of time. On the other hand, Lloyd company can adopt
the corporate social responsibility related activities that will help in sustain business for long
period of time at market place. In context to this, it has been observed that financial institution
which adopts the suitability approach that owns the satisfied staff members.
4.2 Responsibilities of finance professionals in upholding the principles of sustainability
The work responsibilities of the financial professional is helpful in upgrade the
sustainability of company for long period of time. Under this, it has examined that
8

responsibilities of finance professional of Lloyd consists spreading awareness about social
responsibilities (Wald, 2015). Under this consists promotion of the sustainable practices for an
instance availing the quick services to consumers, developing positive working environment for
staff members and make improvement in existing services as well as products for attracting
consumers. These all are helpful in increasing the sustainability of Lloyd Bank for long period of
time.
CONCLUSION
From the above report, it has been concluded that while working in an organisation a
person is said to have ethical behaviour so that better working environment can be maintained.
Along with this, it is crucial for a person to maintain and keep personal and professional life
different so that both can be kept different. Therefore, there are some code of conduct that are to
be which must be acquired by an individual such as following rules and norms, how to behave
with other individual etc., As a result, it will aid in having better conduction of activities.
9

REFERENCES
Books and Journals
Bailey, J. and Burch, M., 2016. Ethics for behavior analysts. Routledge.
Bogenschneider, B. N., 2015. Professional Ethics for the Tax Lawyer to the Holmesian Bad
Man. Creighton L. Rev.. 49. p.775.
Davies, A., 2017. Ethics, professionalism, rights, and codes. Language testing and assessment,
pp.397-415.
Durkheim, E., 2018. The division of labor in society. In Inequality (pp. 55-64). Routledge.
Emmerich, N., 2016. Reframing research ethics: Towards a professional ethics for the social
sciences. Sociological Research Online. 21(4). pp.1-14.
Farahani, M. F. and Farahani, F. F., 2014. The study on professional ethics components among
faculty members in the Engineering. Procedia-Social and Behavioral Sciences. 116.
pp.2085-2089.
Frederickson, H. G. and Rohr, J. A., 2015. Ethics and public administration. Routledge.
Frost, C., 2015. Journalism ethics and regulation. Routledge.
Knapp, S. J., VandeCreek, L. D. and Fingerhut, R., 2017. Practical ethics for psychologists: A
positive approach. American Psychological Association.
Percival, T., 2014. Medical ethics. Cambridge University Press.
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.
Sugarman, J., 2015. Neoliberalism and psychological ethics. Journal of Theoretical and
Philosophical Psychology. 35(2). p.103.
Swanson, D. L. and Frederick, W. C., 2016. Denial and leadership in business ethics education.
Business ethics: New challenges for business schools and corporate leaders, pp.222-240.
Wachs, M., 2017. Ethics in planning. Routledge.
Wald, H. S., 2015. Professional identity (trans) formation in medical education: reflection,
relationship, resilience. Academic Medicine. 90(6). pp.701-706.
10