Ethics Scenarios

Question 1

You are attending a main contractor business conference, and randomly selected as the winner of an ipad air, what do you do?

Answer 1

Rules of conduct ; public official
Would not accept, significant value and could be interpreted as a bribe
As you might be working with them, the prize would be highly inappropriate, and could be perceived as impacting my impartiality as a professional
Respectfully decline, they give it to charity
Report internally to line manager

Question 2

You receive an invite to attend the Theatre with some members of your project team, but they dropped out due to illness, what would you do?

Answer 2

What is the cost - another bribe?
Declare this internal gifts and hospitality register. Await approval
Need to decline as project team not there and not business event
Decline hospitality

Question 3

You are bidding for a project and client advises you that if you reduce your fee bid by £3000 you will be first place and win the tender. How would you advise the client?

Answer 3

Unfair competition - potentially a bribe
Rules of conduct - not treating others with respect, not acting with integrity
Sets up unsustainable business practice. Cant do a proper job for the fee, would need to reduce scope.
Decline offer.

Question 4

Tender in progress that you have submitted a bid. Client is also a parent in a junior theatree group. Your company does community initiatives and asks you to sponsor their annual performance. The group doesn’t have a lot of money. How would you advise the client.

Answer 4

Rules of conduct - COI, bribe, perceptual, public interest
Politely decline
Report to line manager - full transparency
Escalation internallly whistleblowing.

Question 5

Tender in progress that you have submitted a bid. Client is also a parent in a junior theatree group. Your company does community initiatives and asks you to sponsor their annual performance. The group doesn’t have a lot of money. How would you advise the client.

Answer 5

Rules of conduct - COI, bribe, perceptual, public interest
Politely decline
Report to line manager - full transparency
Escalation internallly whistleblowing.

Question 6

Contractor invites you to lunch at restaurant and advises two Michelin stars and good wine list. They are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?

Answer 6

Rules of conduct - Bribe, public interest, integrity - possible infringement of Bribery Act.
Decline offer if first time.
Inform line manager - full transparency

Question 7

You’re employed as a surveyor by an architecture company. Upon completing a contract, you’re informed that there are some more contracts coming up, which the architecture firm is considering surveyors for. One of the senior architects informs you that his child is looking for a role as a trainee chartered surveyor and states in no uncertain terms that if their child is able to get a job in your company, the further contracts are yours. What ethical issues does this situation present?

Answer 7

RULE 4.2 Treat everyone with Fairness and Respect.
RULE 5 - Act in a way that promotes trust in the profession. Take responsibility. Rule 5.1 and speak out. This is a bribe.

Question 8

Client takes you out for lunch after a business meeting, where you continue to discuss business. The bill comes to £200. What should you do now?

Answer 8

The lunch had a legitmate business purpose, so potentially can accept.
Client should have considered the perception of this - inappropriate / disproportionate
Given size of bill, it must be declared on gifts and hospitality register
Offer to reciprocate at more modest restaurant

Question 9

You are awarded a contract by a new client. The client’s firm invites you to celebrate by joining their team at the opening night of a trendy restaurant run by a well-known chef. It will not be the most expensive restaurant in town by any means, but everyone wants to eat there, and it is booked up for months. Your company gift policy does not explicitly debar such a gift. Which of these possible responses is recommended by the ethical standards?

Answer 9

Accept the invitation but ensure you declare it in your firm’s gift register.

Question 10

You have been appointed by your client to conduct work on an apartment they are looking to sell. You confirm the building is structurally sound. However, your client tells you confidentially that violations of electrical and mechanical engineering codes do exist. They ask you not to report the violations – they will sell the property in its current state. Although not an expert in the field you are aware that the defects could result in injury. Which of the following ethical issues are relevant to this situation?

Answer 10

RULE 5 RESPONSIBILITY AND PREVENT HARM
1. Call out what isnt right - Take responsibility Rule 5.1
2. Report this internally Rule 5.2 to director / whistleblowing speak to the client
3. Confidentiality to the client RULE 1.9
4. Public interest - don’t undermine public confidence RULE 5.3
TAKE APPROPRIATE ACTION if rules have been breached RULE 5.9

Question 11

As part of a contract, a client your company has worked with for a number of years requests that you use a less expensive form of building cladding.Although currently legal, you have seen some recent studies suggesting that this material may pose a fire risk. Which of these possible responses is recommended?

Answer 11

RULE 5 RESPONSIBILITY AND PREVENT HARM
RULE 5.1 Question practice as not right AND take appropriate action 5.9. Would bring me and firm undermine confidence in profession
Refuse the proposed course of action but suggest an alternative.

Question 12

Your partner is a journalist and wants to write an article about the surveying profession, including stories have you told her in confidence.Your partner says they will anonymize and protect the identity of the individuals involved.What ethical issues does this situation present?

Answer 12

1. Client Confidentiality RULE 1.9 not to disclose
2. Rule 5.3 Public statements do not undermine the Profession
   3.Duty of candour - open and honest with clients and apologise when things go wrong

Question 13

Your client, a large American company with branches around the world, has seconded you to work in another country. The client insists on paying half your fee in American Dollars and half in the local currency. You were told this was for ‘tax purposes’. You are concerned this is not standard practice. Which of these possible responses are in accordance with the RICS Rules of Conduct?

Answer 13

1. SPEAK out RULE 5.1 with the client noting your concerns and clarify payment arrangement. Could be perceived as illegal, tax avoidance. Responsibilites to protect public interest / profession
2. Speak to firm’s finance dept about situation. Support from firm 5.2

Question 14

You are a strict vegetarian for religious reasons. You joined your firm because it has strong ethical policies. However, you have now been asked to project manage the construction of a new high-volume animal slaughtering facility. Which of these possible responses are appropriate?

Answer 14

RULE 5 - SPEAK OUT Express your views to your director and propose an amendment to the ethics policy to debar this kind of work. Also RULE 4 - Treating colleagues with respect
Ask your firm to appoint another project manager due to your beliefs

Question 15

You are a partner in a firm. You are working on a project and come across a technical issue that is outside your area of expertise. Unsure of what to do you ask a senior partner for advice. Which of the following courses of action is supported by the RICS Rules of Conduct?

Answer 15

Explain to the client that you have taken advice from a senior partner due to the limits of your own expertise in the area, but make sure you are absolutely confident of the advice before acting on it, as responsibility is ultimately yours. RULE 2.1 Undertake the work they only have knowledge,skills and resources to do.

Question 16

You are a junior surveyor and have been working for a company for six months. You’re given a project that is far above your level of competency, and you are concerned that you may make mistakes due to inexperience. You’re also keen to make a good impression and have been looking for work that will challenge you and develop your skills. What ethical issues does this situation present?

Answer 16

1. question of competency RULE 2.1 do you have skills, knowledge to do this
2. Act in honest and transparent manner RULE 1 - potential for complicit in actions /omissions rule1.1
3. Take responsibility as it doesn’t seem right 5.1/ 5.9 take action

Question 17

Newly appointed project manager working for your Client’s organisation wants to change previous terms of engagement and if you don’t give a 20% discount they wont renew the contract. How would you respond?

Answer 17

Renegotiation not bribe
Would need to tell client would affect scope and resource of service - may undermine quality service
treating other surveyors with respect
Unsustainable business practice
Need to assess proposal and see if feasible if not decline

Question 18

How would you deal with a situation such as friend asks you to provide them with QS advice?

Answer 18

Rules of conduct; integrity providing impartial advice
Not offer advice without PI insurance
Info provided needed to have thorough checking
Advise to RICS find a surveyor scheme.

Question 19

Your partner works for a construction company and asks you to undertake some work in a capacity as an RICS professional. Your partner is new to the company, and keen to find ways to impress. They ask you to do the work off the record, without getting paid, as this cost-saving will reflect well on them. What ethical issues does this situation present?

Answer 19

Duty of professionalism - giving a quality service with no fee - 3.5 difficult to do skill and care. PI insurance / Conflict of interest. 1.3 / 1.4
Integrity - Rule 1.2 influenced improperly by others.
Acting in a way that promotes trust in the profession - undermines profession action is not right 5.1

Question 20

You are appointed by your local authority to conduct a study on the construction of a road. The authority is considering building the road near the town where you live. The road will cut your journey time to work by half an hour each way. What ethical issues does this situation present?

Answer 20

Conflicts of interest Rule 1.2 influenced improperly and transparency 1.6

Question 21

You are managing a large area of ​​rural land and you notice there are a number of vacant properties. Your son and his family are looking for a property to rent for a holiday and ask you to approach your client. What ethical issues does this situation present?

Answer 21

1. Conflicts of interest - Personal
2. Client’s best interest - Rule 3.8 any referral in best interest
3. Acting in a way that promotes trust in the profession

Question 22

You work for a small local firm of RICS professionals. You are acting for the seller of a residential property. A buyer asks you if you will act for them as well. They need a property assessment for their bank who will be lending them the money to buy the property. Both parties are keen for you to act for the buyer: the buyer because you will be cheap, having done much of the necessary surveying work already; the seller because they want an accelerated sale. Neither party is concerned about any conflict of interest. What are the main considerations in this case in accordance with the RICS Rules of Conduct?

Answer 22

1. Clients best interest - Rule 1.5 advice that is honestly and objectively
2. Conflicts of interest 1.3/ 1.4 + PS Conflicts of interest - Informed consent and process

Question 23

Your company has just completed an upmarket riverside development.You are selling the penthouse flat and you recognize the purchaser is the spouse of one of your colleagues.They have not disclosed any interest.What ethical issues does this situation present?

Answer 23

1. Conflicts of interest - Rule 1.3 / 1.4 Own party
2. Acting responsibility and calling out when things don’t seem right Rule 5.1 and should be supported by the firm to do so eg whistleblowing
3. Act in a way that promotes trust in the profession

Question 24

Your firm enlists you to lead a bid to build a new housing complex on a green field site between two small settlements in a rural area. Building on the land is legal, but you strongly oppose the development as someone with a keen interest in preserving the heritage and character of the area. Which of the following courses of action is supported by your obligations as an RICS professional?

Answer 24

RULE 1.3 - Conflict of interest in personal capacity declare this to your employers

Question 25

A new development is proposed on land which was previously owned by a church.Your firm has appointed you to head the proposed development.You are uncomfortable with this as your grandparents’ grave is in the churchyard.What ethical issues does this situation present?

Answer 25

Rule 1.3 / 1.4 Conflict in Personal capacity - need to be transparency
RULE 3 provide a quality service and act in the client best interests.

Question 26

Your firm represents a client involved in a controversial infrastructure project.The project will see large areas of greenbelt built on.You learn the house of a friend will be subject to an unwelcome compulsory purchase order.Your friend is unaware of this.What ethical issues does this situation present?

Answer 26

RULE 1.3 / 1.4 Conflict in Personal capacity - need to be transparency
RULE 3 provide a quality service and act in the client best interests.

Question 27

Your colleague is an RICS member and is authorized to sign off real estate appraisal reports. Their department is under severe pressure and they allow junior staff members to prepare standard reports and sign them in their name. Which of the following ethical issues are relevant to this situation?

Answer 27

Honesty / disappointment - 1.1 misleading / 1.6 open and transparent
Competence and care - 3.5 undertake with due skill, care and diligence
Responsibility - Members question actions that are not right 5.1

Question 28

Partner says spent all the fees on the job, final accounts are still to be agree and some areas are still to re-measured according to the contractor, what should you do?

Answer 28

Not change level of service to the client
Investigate why all fees have been spent - eg error in fee calculation, rectify for future
Is because of additional services, then speak to driector and prepare additional claim. Speak to client
Keep track of fee spending

Question 29

You’re working in a country which has health and safety laws, but the laws are not enforced.Construction workers don’t take health and safety seriously.Your firm is in a consortium with a local construction firm.You visit a site and none of their workers are wearing helmets.What ethical issues does this situation present?

Answer 29

Rule 5 taking responsibility to speak out if something is not right
Rule 2.3 Duty of Care - have resources to do tasks competently

Question 30

You are travelling by train on business with a senior colleague. After you get off the train and it has left the platform, your colleague suddenly says, ‘Damn! I left my memory stick on the train! Oh well, never mind, I have copies of everything on my laptop anyway.’ You saw the work they were doing on the train and think the memory stick might have sensitive client data on it. Which of these possible responses are in accordance with the RICS Rules of Conduct?

Answer 30

Notify firm’s compliance department - Rule 1.9 protect client confidentiality
Raise your concerns with your colleague - Rule 5.1 Take responsibility to speak out

Question 31

You are in the pub when you notice a table of your colleagues sitting together.They are quite drunk and are loudly discussing a notoriously difficult client of your firm.They are discussing details of the client’s behavior but are not mentioning them by name.Which of the following ethical issues are relevant to this situation?

Answer 31

Byelaws on client confidentiality and Rule 1.9 protect confidential information
Rule 4 respecting others and with courtesy 4.1

Question 32

One of your colleagues from the bank has set up a group on a social media app for staff who work for your small surveying firm. The group is private and only people who work in the firm are admitted. You see that people are posting rude comments about the personal appearance of a member of staff in the firm who is not a member of the group. Which of the following ethical issues are relevant to this situation?

Answer 32

Rule 4.1 treating others with respect
Rule 4.3 Do not bully or harrass anyone

Question 33

One of your firm’s clients is a successful comedian. One day, when looking over their account, you notice that the payment for their current project is coming from a business which is based overseas, in a country which is a well-known tax haven. The next weekend, you have a drunken conversation at a family wedding in which you divulge this information to several relatives. Which of the following ethical issues are relevant to this situation?

Answer 33

Rule 1.9 protecting client confidentiality
RULE 3 Provide a quality service to the client. ACT in best interests of the client

Question 34

Your firm, a large and successful multinational corporation, is singled out in the press for exploiting tax loopholes. You view such behaviour, while being legal, as unethical. Which of these possible responses are appropriate?

Answer 34

Speak to your line manager and discuss whether the firm can amend their tax policy.

Question 35

You discover your firm owns a holiday property which certain senior managers are allowed to use free of charge without declaring it as a benefit – the CEO hand picks the people who can use it. What ethical issues does this situation present?

Answer 35

Honesty - Influenced by self interest 1.2
Public Interest - 5.3 do not undermine profession
Transparency - Not clear about decision making 4.2 discrimination
Whistleblowing 5.1 questioning practicing that are not right

Question 36

Your Chief Executive approaches you with the offer to undertake work for one of their personal friends. You are asked to do this outside of normal working hours and for it to kept “off the record”. Which of the following ethical issues are relevant to this situation?

Answer 36

Conflicts of interest - 1.3-1.4 Actual and perceived COI
Honesty / disappointment - 1.2 not influenced improperly

Question 37

A colleague is soon to join a new firm. You discover they are secretly planning on taking your firm’s confidential client list with them. Which of these possible responses are recommended by the ethical standards?

Answer 37

RULE 5.1 question it RULE 5.9 take appropriate action
Report your colleague through the firm’s internal reporting system.

Question 38

You’re working in another country where your firm is in a consortium with a construction firm. This firm appoints a project manager who is the sibling of the construction firm’s Managing Director. You know this individual was not the best candidate and in fact is barely qualified to do the job. It’s a complicated project and you foresee chaos. The outcome is likely to be cost overruns, quality shortfalls and disputes with the client. All this could create hassle and unpaid extra work for your firm, as well as a very poor experience for the client. What ethical issues does this situation present?

Answer 38

1. RULE 2.2/ 3 competency to do the work, skills etc
2. Providing a quality service RULE 3 and acting in the client’s best interest
3. Not fair RULE 4 - 4.2 treat everyone fairly

Question 39

A junior female colleague has approached you with concerns about the behaviour of a male colleague. She has alleged that the individual talks over her in meeting, sneers at any suggestions she makes and is generally disrespectful to her and other female colleagues. You’ve had similar reports from other colleagues in the organisation. Which of the RICS Rules of Conduct are most relevant to your decision about what to do?

Answer 39

RULE 4 Treat others with respect and encourage diversity and inclusion
RULE 5 Act in the public interest, Take responsibility and prevent harm, maintain public confidence

Question 40

You run into a colleague at the train station on the way to work. You buy a ticket from the machine and notice that your colleague is not doing the same. You ask them if they buy their tickets in advance. They reply that they never bother buying a ticket as no-one ever checks. Which of the following ethical issues are relevant to this situation?

Answer 40

RULE 1 acting with honesty and integrity - in this case deception

Question 41

Your client approaches you with an unorthodox proposal which will minimise their tax obligations. Although it appears to be legal, you are not comfortable with the possible implications. Which of these possible responses are appropriate?

Answer 41

RULE 1 act with honest and integrity, Call out behaviour 5.1 / 5.9 act in the public interest. Speak to the client, be ready to refuse the work.

Question 42

You have a contract with a client. Halfway through the work, your firm changes its terms of engagement, charging more for certain services. When the contract is complete, your finance department bills the client, who pays promptly. Six months later you notice that they billed them at the new rate instead of the old one. Which of these possible responses are in accordance with the RICS Rules of Conduct?

Answer 42

RULE 1 - honesty, integrity, transparency
Contact the client and explain the error, apologise, and arrange for the extra payment to be reimbursed.

Question 43

You learn you will be subject to a criminal investigation, which is unrelated to your work. Though you are innocent, the investigation will soon be public knowledge. Which of these possible responses are in accordance with the RICS Rules of Conduct?

Answer 43

Explain the situation fully and openly to your employer.

Question 44

A local property owner who has been featured in the press for refusing to rent properties to people from a minority group contacts you directly and asks for your firm to sign a contract to carry out all their surveying work. As a result of certain recent comments, the property owner is facing legal proceedings for discriminatory practices, but, as of yet, has not been found guilty of any crime. Which of the following RICS Rules of Conduct are relevant when considering what to do in this case?

Answer 44

Rule 1 Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Rule 5 Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Question 45

You are the construction manager for a block of luxury apartments. Someone gives you convincing information that the development may be a money laundering scheme for a narcotics cartel. Which of these possible responses are in accordance with the RICS Rules of Conduct?

Answer 45

1. Submit your evidence to the authorities.
2. Report your suspicions to the authorities and, in the meantime, continue with the work.

Question 46

One of your clients has been charged with fraud, and you have been called as a witness for the prosecution. Which of the RICS Rules of Conduct are most relevant to your decision about what to do?

Answer 46

RULE 1 Honesty and Integrity - Issues potentially with COI and breaching confidentiality1.9
RULE 5 act in public interest but 5.6 cooperate where legally required