Professional Ethics Report: Principles, Practices, and Regulations

This report delves into the realm of professional ethics, focusing on the application of ethical principles within the context of Tesco, a major British multinational retailer. The report initiates with an exploration of fundamental ethical principles such as integrity, objectivity, and confidentiality, and their significance in the business environment. It then examines the relevant legal, regulatory, and ethical requirements impacting the accounting and finance sector, including the role of professional bodies in establishing and enforcing ethical standards. Furthermore, the report addresses the risks associated with improper practices and emphasizes the importance of vigilance. It explores ethical conduct in interactions with clients, suppliers, and colleagues, the significance of objectivity, and the adherence to organizational policies. The report also covers circumstances involving the disclosure of confidential information, reporting unethical behavior, and strategies for preventing ethical conflicts. Finally, the report highlights 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
MAIN BODY...................................................................................................................................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 Explain the role of professional bodies in relation to the accounting and finance sector......2
1.4 Explain why individuals, organisations or industry sectors are expected to operate within
codes of conduct and practice .....................................................................................................3
1.5 Explain the risks of improper practice to an organisation and the importance of vigilance..3
1.6 Maintaining an up-to-date knowledge of changes to codes of practice, regulation and
legislation affecting the accounting and finance sector...............................................................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 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
3.1 Identify the relevant authorities and internal departments to which unethical behaviour,
breaches of confidentiality...........................................................................................................6
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 which should be followed if an employee
suspects an employer, colleague .................................................................................................7
3.5 Outline strategies that could be used to prevent ethical conflict...........................................7

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................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Professional ethics are the rules and regulations which are formed by corporation and it
guide the employees to perform their job functions as per sound and consistent ethical principles.
It provides help the workers to perform their roles and duties more effectively so that company
can accomplish its goals and objectives. In this report chosen organisation is Tesco which is a
British Multinational groceries and general merchandise retailer of United Kingdom. The main
aim of corporation is to encourage the staffs to follow professional ethics. In this report there are
following topics are covered such as: fundamental principles of ethical behaviour, role of
professional bodies in relation to the accounting & finance sector, risk of improper practice to an
organisation, how to act ethically when working with clients, suppliers and colleagues,
importance of adhering to organisational policies for handling clients monies, identify relevant
authorities and internal departments to which unethical behaviour, internal and external reporting
procedures which should be followed if an employee suspects an employer, colleague has
committed. Apart from this it also discuss about the ethical responsibility of the finance
professional in promoting sustainability.
MAIN BODY
1.1 Fundamental principles of ethical behaviour
Ethical behaviour tends to be good for business and involves demonstrating respect for
key moral principles which includes equity, fairness, honesty and individual rights. Tesco can
follow various fundamental principles of ethical behaviour such as:
 Integrity : This principle emphasis to be honest and straightforward in all professional &
business relations. As a result honestly can be reflects in the behaviour of employees of
Tesco which can help the organisation to achieve its objectives.
 Objectivity: As per this principle biasedness is not allowed, undue influence of others to
override professional or business judgements. As a result Tesco can achieve its
objectives which is profit maximization (Shani and Soskolne, 2013).
 Professional and technical competence and due care: This principle focuses to maintain
professional knowledge and ability which ensure that a consumer receives competent
professional and technical services. As a result consumers can be satisfy from effective
services of Tesco.
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 Confidentiality : This principle focuses that employees of Tesco should not disclose
private and confidential information and data to the third party. So that other person can
not misuse the confidential information.
 Professional behaviour : This principle emphasis to follow the compliances and laws and
avoid any action which discredits the profession (Knapp and Fingerhut, 2017).
1.2 Relevant legal, regulatory and ethical requirements affecting the accounting and finance
sector
For an organisation it is important to follow legal, regulatory and ethical requirements so
that accounts and finance department of Tesco can perform its business functions effectively. It
is important to maintain compliances and code of practices by accounting and finance sector and
these are as: to provide true and fair information to the stakeholders and public, properly
investigates the books of accounts and financial statements of organisation, to rectify mistakes
and errors while preparing financial statements so that relevant information can be provided. If
accounts and finance department of Tesco will manipulate and misrepresent the data and
financial information than penalties can be imposed by government and its comes under civil
law. So it is important to work ethically for the organisational growth and success.
1.3 Explain the role of professional bodies in relation to the accounting and finance sector
Professional bodies are those organisations whose members are individual professionals.
They made compliances and rules in relation to the business. There are various professional
bodies which are related to accounting and finance sector such as: Association of Chartered
Certified Accountants, Consultative Committee of Accountancy Bodies, Chartered Institute of
Public Finance and Accountancy etc. Primary roles of these bodies is to make rules and
regulations for the smooth business operations, provides support for continuing professional
development through learning opportunities and tools for recording and planning. An another
role of these bodies are to constantly seeks growth and development of business organisations by
preparing adequate financial statements (Basart and Serra, 2013).
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1.4 Explain why individuals, organisations or industry sectors are expected to operate within
codes of conduct and practice
To follow the code of conduct and practice is essential for individuals and organisations
so that work can be done in effective manner. There are various codes of conduct and practices
which are important to follow by an individual in corporation such as:
 To be honest in all dealings of business so that Tesco can get the advantage of best deal
which is fruitful for it (Tannenbaum, 2013).
 Protect the confidential and private information of organisation and properly perform
roles and duties to achieve the corporation goals and it can be reason of organisational
growth as well as individual growth.
Codes of conduct and practices followed by company
 To protect the interest of stakeholders and consumers so that brand image of corporation
can be enhanced.
 To work as per the rules and regulations of companies act so that legal compliances can
be follow.
1.5 Explain the risks of improper practice to an organisation and the importance of vigilance
Improper practices can affect the goodwill and brand image of corporation which
involves breach of laws and regulation, does not protect the interest of consumers etc. There are
various risks of improper practice to an organisation are as follows:
 If company involves in improper practices and does not follow due diligence than
financial records can not be maintained properly (Brecher, 2014).
 If management involves in money laundering than its reputation can be damage.
Vigilance can be consider as important function of management and its role to protect the
company from various internal threats. Importance of vigilance are as follows:
 It is required to find the irregularities before it is carried out so that business operations
can not get affected.
 It provide help to promote ethical practices and culture of integrity in the organisation
(Gillam and et. al., 2014).
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1.6 Maintaining an up-to-date knowledge of changes to codes of practice, regulation and
legislation affecting the accounting and finance sector
To maintain up to date knowledge of changes to codes of practice, regulation and
legislation it important for an organisation so that it can work as per the requirements of
regulations and legislations. For example, If International Financial Reporting Standards has
provide amendment that companies have to show its financial statements in every extra ordinary
business meeting and accounts and finance department of Tesco does not aware about this. As a
result this meeting can not take place due to the absence of financial statements and organisation
can not take important decisions which are essential for the business growth. So it is important to
have up-to-date knowledge of changes to regulation and legislation (Coleman, 2012).
2.1 Explain how to act ethically when working with clients, suppliers, colleagues and others
There are many ways helps the organisation to act ethically when working with clients,
suppliers and colleagues. Safeguarding means to protect the health and human rights of
consumers by providing quality products as per the demand and listen the compliance of them
which shows that it is act ethically. Payment should be given Tesco as per the agreement with the
suppliers. While dealing with colleagues it is essential to professionally behave and disclose all
material fact about the deal so that true and fair information can be provided which shows the
ethical act of corporation. It helps to make good brand image and reputation of company.
2.2 Explain the importance of objectivity and maintaining a professional distance between
professional duties and personal life at all times
For an individual it is essential to maintain a professional distance between professional
duties and personal life so that it can perform its duties more effectively and build the career in a
successful manner. If a person has depressed because of its personal issues, in that case it can not
enjoy in its personal life which can also impact the professional life. Because an individual does
not feel happy and confident which can hamper the efficiency and productivity as a result targets
can not be accomplish on time. So it is important to make distance among professional duties
and personal life and it should be balanced (Behnke, 2012).
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2.3 Explain the importance of adhering to organisational and professional values, codes of
practice and regulations
To adhere the organisational and professional values, codes of practice and regulations
are important because of the following reasons such as:
 It assist to follow the rules and regulations of laws so that required compliances can be
maintain.
 Provide help to develop integrity and honesty.
 Healthy and safe working environment can be establish in the company so that
individuals feel comfortable to work.
 Ensuring freedom from discrimination and bullying.
So it is beneficial for Tesco because if these professional values, codes of practice and
regulations has been followed than its reputation can enhanced and employees will prefer to
work in the company (Parker, 2017).
2.4 Importance of adhering to organisational policies for handling clients’ monies
To adhere the organisational policies is important while handling the clients money. All
companies has its own rules that how they handle the funds of various clients. For example,
Tesco has many stores and it needs raw material to prepare food and organisation has policy that
they make payment to supplier within 2 months. If company does not give payment within
stipulated time frame than it have to pay additional amount to supplier which is not fruitful for
corporation because it can reduce the profits. So it is essential to adhere organisational policies
so that clients money can be handle in effective manner.
2.5 Identify circumstances when confidential information should be disclosed and who is entitled
to the information
Confidential information is that which does not reveal to the general public or any third
party so that interest of company can be protected. To disclose confidential information is a
illegal and unethical practice and law prohibit this. But in some exceptional circumstances this
type of information can be disclosed. For example, Tesco has its own mobile application through
which persons can place online order related to food and beverage. While sign up the app it is
essential to fill all personal details such as: name, age, gender, email id, mobile number, address
etc. Some consumers placed order and they saw that they are not getting quality foods and by
eating poor quality of products persons caught up with food poisoning and their health get
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affected. Consumers suit the case against the organisation and it have to disclose the confidential
information about all customers such as: name, mobile number, address, email id in front of
court and it will be restricted only to the court. It provide help to take effective decisions in
favour of customers.
2.6 Explain the importance of working within the limits and confines of one’s own professional
experience, knowledge and expertise
For an individual it is important to work within the limits by using own professional
experience, knowledge and expertise so that task can be performed in effective manner which
help to achieve goals. For example, If a person has done chartered accountant and by profession
it is finance expert. In this case, that individual should take care about finance related matter in
Tesco and if it also handle the marketing department than there are very less chances that it
perform both roles very effectively. In that case marketing department can not achieve its targets
because of ineffective plans and policies which are frame by that individual. As a result
corporation can not achieve its targets and goals and that person can not get the opportunity to
promote at higher level in the organisation (Harris and Robinson Kurpius, 2014).
3.1 Identify the relevant authorities and internal departments to which unethical behaviour,
breaches of confidentiality
There are various authorities which are made to control unethical behaviour, breaches of
confidentiality and suspected illegal acts. International Ethics Standards Board of Accountants
issued regulations which helps to control all these activities. According to the regulations an
individual should prepare financial statements as per the required manner which reflects true and
fair information about financial position of corporation and does not make any illegal act such
false and misrepresentation of data. It is essential that does not breach confidential information
before the financial statements presented by Tesco to general public. Higher authority of
company should control the internal departments so that unethical practices can be minimize.
3.2 Identify the appropriate action to take in instances when requests for work are beyond the
employee’s competence
The organisation needs to provide the work to their employees according to their
capabilities so that they can complete their work within given time and attain organisational
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goals. If organisation gives the work to their employees beyond their capabilities than it is
considered as breach of ethical conduct. Because the more work creates a pressure on the
employees and this needs to be taken by companies. Employees can take action against these
practices according to employment act. This is important for employees to prove that the work
which provided to them is beyond their capabilities so this will give decision in favour of
employees (Kinsella and Pitman, 2012).
3.3 Identify inappropriate client behaviour and how to report it
When behaviour of client is offensive, threatening and unsolicited than it can be consider
as inappropriate client behaviour. Company should make rules and regulations which are needed
to follow and if these are not followed than to whom it should be reported. If an individual does
not perform its roles as per the required manner than it can be treated as inappropriate behaviour.
For example, If a female employee of Tesco is dealing with client and while talking it is using
abusive words than this wrong behaviour can be reported by organisation and company should
take action against that person.
3.4 Internal and external reporting procedures which should be followed if an employee suspects
an employer, colleague
There are various internal and external process for reporting the illegal or any unethical
practice in organisation. The internal process for reporting states that one can say just no to the
unethical practice, talk to the co workers, confront the problem in front of manager and after that
individual can consult an attorney also for this matter. External process states that one report to
the management through a normal reporting channels. This is considered as an effective process
for reporting because the action will be taken more promptly.
3.5 Outline strategies that could be used to prevent ethical conflict
Conflict is a situation which arises when two or more persons does not agree to perform a
same thing or activity (Conflict. 2018).To prevent conflicts ethics can plays a useful role and
organisation should make appropriate strategies to control it. Tesco can prepare ethical strategies
which is needed to be followed by every member of corporation. When workers and company
both follow the ethics than personal as well as organisational objectives can be accomplish
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effectively. Ethics brings the integrity and honesty in workers which help to build healthy
working environment at work place. As a result ethical conflicts can be minimise.
4.1 Explain the importance of an ethical approach to sustainability
The business organisations are develop for sustaining in long period of term. As it is very
important to provide qualitative products to the customers which will help company to grow and
sustain for long period of time. There are various kinds of ethics which are followed by the
different organisation according to their culture. These ethics are very helpful for organisation to
create an unique image in market by following all ethical trade practices and gain consumer
faith. So it can be said an ethical approach is very important for sustaining in business and taking
competitive advantage in market.
4.2 Outline the responsibilities of finance professionals in upholding the principles of
sustainability
Finance professionals are the individuals who are responsible to follow the compliances
which are made by regulatory governing bodies. It provides help to prepare financial statements
as per the accounting rules and principles and ensure that all code of conducts are following &
financial reports are providing true and fair information. It is helpful for Tesco to take essential
business decisions for the growth of corporation which can brings the sustainability in the
business. So finance professionals help the company to work as per the principles of
sustainability (Jahanpour and et. al., 2014).
CONCLUSION
In the conclusion it can be said that following ethical practices are very important for
organisation. These ethical practices enables company to sustain for long time period in market
and expand their customer base by creating an unique brand image. It is very important for
organisation to maintain their knowledge up to date with changing code of practices. This can be
said that maintaining a distance between professional and personal life helps individual to
improve their efficiency at workplace. There are different ways for reporting such as internal and
external which needs to be followed by the individuals.
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REFERENCES
Books and Journals
Knapp, S. J., VandeCreek, L. D. and Fingerhut, R., 2017. Practical ethics for psychologists: A
positive approach. American Psychological Association.
Shani, A., Belhassen, Y. and Soskolne, D., 2013. Teaching professional ethics in culinary
studies. International Journal of Contemporary Hospitality Management. 25(3).
pp.447-464.
Grace, P. J. ed., 2017. Nursing ethics and professional responsibility in advanced practice. Jones
& Bartlett Learning.
Tannenbaum, J., 2013. Veterinary ethics. International Encyclopedia of Ethics.
Gillam, L. and et.al., 2014. The role of emotions in health professional ethics teaching. Journal
of medical ethics. 40(5). pp.331-335.
Basart, J. M. and Serra, M., 2013. Engineering ethics beyond engineers’ ethics. Science and
Engineering Ethics. 19(1). pp.179-187.
Brecher, B., 2014. What is professional ethics? Nursing ethics. 21(2). pp.239-244.
Coleman, S., 2012. Military ethics: an introduction with case studies.
Behnke, S. H., 2012. Constitutional claims in the context of mental health training: Religion,
sexual orientation, and tensions between the first amendment and professional ethics.
Training and Education in Professional Psychology. 6(4). p.189.
Parker, D. B., 2017. Rules of ethics in information processing. In Computer Ethics (pp. 17-20).
Routledge.
Harris, S. E. and Robinson Kurpius, S. E., 2014. Social networking and professional ethics:
Client searches, informed consent, and disclosure. Professional Psychology: Research
and Practice. 45(1). p.11.
Kinsella, E. A. and Pitman, A., 2012. Phronesis as professional knowledge. In Phronesis as
professional knowledge (pp. 163-172). SensePublishers, Rotterdam.
Jahanpour, F. and et.al., 2014. Construction and evaluation of nursing ethics questionnaire.
Online
Conflict. 2018. [Online]. Available through:
<https://study.com/academy/lesson/what-is-conflict-management-definition-styles-
strategies.html>
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