Ethics

Question 1

set of shared beliefs about what’s good and acceptable

Answer 1

Ethics

Question 2

study of good and bad behavior

Answer 2

Ethics

Question 3

Ethical conduct (3)

Answer 3

• conduct that follows moral principles and is consistent with society’s ethical expectations
• conduct that improves outcomes for stakeholders
• conduct that balances your self-interest with the impact on others

Question 4

people directly or indirectly affected by a conduct

Answer 4

Stakeholders

Question 5

Name stakeholders

Answer 5

Employers, co-workers, investment profession, clients

Question 6

code of ethics is a written set of moral principles that can guide behaviors by _______

Answer 6

describing what is considered acceptable behavior

Question 7

written set of moral principles that can guide behaviors by describing what is considered acceptable behavior

Answer 7

Code of ethics

Question 8

Purpose of having code of ethics for orgs (3)

Answer 8

• communicate the values, principles, and expectations of an organization
• provide a general guide to what constitutes acceptable behavior
• might include set of rules or standards that require some minimum level of ethical behavior

Question 9

Code of ethics communicate ___ ___ and ___

Answer 9

values, principles, and expectations

Question 10

___ provides a general guideline to what constitutes acceptable behavior

Answer 10

Code of ethics

Question 11

how does illegal and unethical actions relate?

Answer 11

not all unethical actions are illegal, not all illegal actions are unethical

Question 12

ethics vs. legal standard

Answer 12

ethical principles sets a higher standard than laws and regulations

Question 13

ethical decisions require ____ ___ and _____ of the impact of behavior on many stakeholders compared to legal decisions

Answer 13

more judgement, consideration

Question 14

____ will be improved when ethics are integrated into a firm’s decision making process

Answer 14

ethical decisions

Question 15

First step of a firm having an ethical decision process is___

Answer 15

adopt a code of ethics to guide the process

Question 16

how does ethics help decision making? (2)

Answer 16

• consider alternative actions

- consider shorter and longer - term impact from various perspective

Question 17

integration of ethics into decision making provides an opportunity to ___ ____ and ____ ethical decision making

Answer 17

teach, practice, reinforece

Question 18

How many components are in code of ethics and how many standards are in Standards of Professional Conduct?

Answer 18

six components of the Code of Ethics and the seven Standards of Professional Conduct.

Question 19

Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.

Answer 19

Code of Ethics components

Question 20

Place the integrity of the investment profession and the interests of clients above their own personal interests.

Answer 20

Code of Ethics components

Question 21

Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.

Answer 21

Code of Ethics components

Question 22

Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.

Answer 22

Code of Ethics components

Question 23

Promote the integrity and viability of the global capital markets for the ultimate benefit of society.

Answer 23

Code of Ethics components

Question 24

Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Answer 24

Code of Ethics components