ETHICS Flashcards
What is Ethics
Ethics encompasses a set of moral principles and rules of conduct that provide
guidance for our behavior.
How does a standard of conduct serve
serve as
benchmarks for the minimally acceptable behavior of community members and can
help clarify the code of ethics.
Code of Ethics
Specific communities or societal groups in which we live and work sometimes codify their beliefs about obligatory and forbidden conduct in a written set of principles,
Profession
A profession is an occupational community that has specific education, expert
knowledge, and a framework of practice and behavior that underpins community
trust, respect, and recognition.
Professions normalize practitioner behavior.
Professionalism is underpinned by
codes and standards developed by professional bodies.
Professions provide a service to society
There is an obligation for professionals to go
beyond codes and standards.
Professions are client focused
An integral part of a profession’s mission is to develop
and administer codes, best practice guidelines, and standards that guide an industry
Professions have high entry standards
Membership in a profession is a signal to the
market that the professional will deliver high- quality service of a promised standard,
going beyond simply academic credentials.
Professions possess a body of expert knowledge.
A repository of knowledge,
developed by experienced and skilled practitioners, is made available to all members
of a profession
Professions encourage and facilitate continuing education.
Entry into a profession does not, on its own, guarantee that an individual will maintain competency and
continue to uphold professional standards. A
Professions monitor professional conduct.
Members of a profession must be held
accountable for their conduct to maintain the integrity and reputation of an industry
Professions are collegial.
Professionals should be respectful to each other, even
when they are competing.
A profession’s code of
ethics:
publicly communicates the shared principles and expected behaviors
of a profession’s members
Situational influences
External factors, such as environmental or cultural elements, that shape our thinking, decision making, and behavior.
What determines whether an individual will behave unethically
External factors, such as environmental or cultural elements
Types of Conduct
Legal,Legal & Ethical and Ethical
Judgement
the ability to make
considered decisions and reach sensible conclusions.
Strategy to build trust
increase the ability and motivation of market participants to act ethically
and help them minimize the likelihood of unethical actions.
ICDR
Identify,Consider,Decide,Reflect
Challenges to ethical behavior
being overconfident in our own morality,
underestimating the effect of situational influences, and focusing on the immediate rather than long- term outcomes or consequences of a decision.
The Standards of Practice Handbook
provides guidance to the people
who grapple with real ethical dilemmas in the investment profession on a daily basis;
the Handbook addresses the professional intersection where theory meets practice
and where the concept of ethical behavior crosses from the abstract to the concrete.
What does the handbook contains
contain practical ethical principles of conduct that members and candidates must follow to achieve the broader
industry expectations.
When does the code should be reviewed
must be regularly reviewed and updated if they are to
remain effective and continue to represent the highest ethical standards in the global
investment industry.
What does the CFA believes how the revisions should be
CFA Institute strongly believes that revisions of the Code and
Standards are not undertaken for cosmetic purposes but to add value by addressing
legitimate concerns and improving comprehension.