RICS Ethics Module Flashcards
What are some examples of unethical behaviour?
Lateness, and lying about reason.
Not managing a conflict of interest.
Misrepresenting a valuation.
Not fully informing the client of risks.
Sexism in recruitment.
What are ethical values?
A set of moral standards by which we can judge our actions, or the actions of others, to be right or wrong.
What is the difference between ethics and the law?
Ethics is not about what is legal, but what is moral.
What are some defining characteristics of professionals?
Having specialist skills and knowledge.
Knowledge maintained through CPD.
Belong to a professional body.
Professional body enforces a code of ethics.
Strong duties to clients and to the public.
Significant power to impact clients and the public.
Client relationships dependent on client trust.
What is one of the biggest threats to ethical behaviour and professionalism?
Commercial and financial pressure
What are the 6 ethical principles?
Honesty
Integrity
Competence
Service
Respect
Responsibility
How many rules of conduct are there?
5
What are the 5 rules of conduct?
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Members and firms must maintain their professional competence, ensuring services are provided by competent individuals who have necessary expertise.
- Members and firms must provide good quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion.
- Members and firms must act in public interest, take responsibility for actions and act to prevent harm, maintaining public confidence in the profession.
What is regulation?
A rule or principle governing behaviour or practice.
What is the difference between rules and principles?
Rules set strict requirements on conduct.
However, principles must be interpreted and applied.
What are some examples of behaviours relating to honesty, integrity and professional obligations?
Not misleading others.
Not being complicit in actions of others.
Not being influenced by others or their own self interest.
Identify conflicts of interest.
Provide honest advice.
Open and transparent about fees and services.
Act to prevent others being misled.
Don’t take unfair advantage of others.
Protect confidential information.
Keep clients money safe.
Don’t misuse client money.
Don’t facilitate financial crime.
What is integrity?
Broader concept than honesty. Reflects higher standards which society expects from professionals. Close link between integrity and manner in which professions serve the public.
What are examples of challenges to professional codes?
They fail to serve their main function in helping professionals resolve ethical dilemmas.
There are gaps and loopholes.
They can be seen as existing to make professionals look good, rather than improving ethical judgement and decision making.
What are the benefits of the codes of practice?
Research shows that they improve ethical behaviour and ethical decision making.
Ensure consistency.
Set levels of professional expectation.
Help to promote trust from the public.
Helps to promote confidence with stakeholders.
Provides justification for a course of action.
Serves as a point of reference in disciplinary proceedings.
Provides protection in alleged cases of misconduct.
Sets professional standards across the boards.
Ensures decisions are unbiased.
Promotes an ethical culture.
What are reasons for having a professional code of ethics?
Promotes general happiness and welfare.
Promotes public interest
Reduces harm or risks to the public.
Provides a license to operate.
Justifies actions.
What is virtue ethics?
Aimed at improving the character of employees by instilling virtues in them.
What is the social construct theory?
A hypothetical agreement with the community on a set of ethical standards, which might include integrity.
What is consequentialism?
Looks at the consequences of actions.
What is deontology?
Having concern about specific duty directed towards a particular group.
What is a conflict of interest?
A personal interest of the fiduciary or agent interferes with the ability of the person to act in the interest of the other person.
What are the 3 types of conflict of interest?
Party conflict
Own interest conflict
Confidential information conflict
What is a party conflict?
A situation where a RICS member or regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client in relation to the same or a related assignment.
What is an own interest conflict?
A situation in which the duty of a RICS member or regulated firm to act in the interests of a client in an assignment conflicts with the interests of that member or firm.
What is a confidential information conflict?
Conflict between the duty of an RICS member under paragraph 2.2 to provide material information to one client, and the duty of that member or firm under paragraph 2.1 to another client to keep that same information confidential.
What is an example of a party conflict?
If a RICS member acts as a valued for both the buyer and seller of a property.
How might you resolve a conflict of interest?
Decline the assignment.
Recommend the client seeks advice from an accountant or lawyer.
What conditions must be satisfied before you can act on a conflict of interest?
All clients will gain if you act.
Clients have given informed consent.
Acting will not look bad.
You will act objectively and diligently for each client.
Acting is lawful.
