11 - Ethics and Professional Standards Flashcards
Ethics (three points to know about definition)
- Application “measured by action not words”
- Ethical values “not all values by firms are ethical ones”
- Business decisions - not just behaviour but decisions
Ethics Definition
‘the application of ethical values to business decisions
Difference in compliance and ethics
Compliance “what you have to do”
Ethics “what you should do”
Statement of Professional Standing
- Adhere to code of ethics
- Hold required qualifications
- Complete appropriate cpd
- Compy with relelvant conduct standards
Ethical issues in financial services (examples
- Unclear and technical documentation
- Sources of remuneration and use of inducements
- Conflicts of interests and sale of unsuitable products
- inadequate handling of complaints
FCA - four key components to firm ethical culture
- Leadership
- Practices
- Governance
- Purpose
What are the 4 components of an ethical framework within a firm
- Commitment
- Leadership
- Operational
- Oversight
Common tools used by firms - operational steps
Policies
Procedures
Training
Joib descriptions
How do you assess how well management information is doing?
Sales Volumes
Customer complaints
Employee ethics training
Stakeholder definition
Those individuals or groups who are affected by the company and its activities, as well as those individuals or groups who can themselves affect the company and its activities
Corporate social responsibility
Twelve steps
- Identify
- Prioritise
- What issues are important
- How issues can influence business
- Where provider stand on issues
- Estimate position stakeholders believe you are in and how present position compares with this (tackling key issues)
- Identify level of resources available
- Decide how to use resources effectively
- Implement improvements
- Communicate with key stakeholders about key issue
- External client to check CSR programme is working
- Explain how CSR programme benefited business
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