Rules of Conduct - Scenario Questions Flashcards
- Tell me what you understand about conflicts of interest? (level 1)
a. Someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
b. Chartered surveyors have an obligation to make clients aware of this and, if necessary, decline work opportunities where a conflict of interest occurs.
- How could a conflict of interest be managed internally if two separate departments within the same company were working for the same client? (level 2)
a. You can proceed but you would treat this like it was two separate companies
b. Ensure exclusivity of staff to each department
c. Separate communication lines to the client
d. Separate geographical locations / secure office and data storage
e. Sign up to confidentiality / non-disclosure agreements
f. Monitor the potential conflict and keep the client updated
- If a client was insistent that you worked for them despite an existing conflict of interest, how would you proceed? (Level 2)
a. Check the clients understanding of the conflict of interest
b. Make them aware of the potential for reduced impartiality
c. Seek a letter of instruction from the client to continue
d. Talk through the working procedures to manage the conflict of interest
e. Agree this formally in writing with the client
Basically: Try to put the onus on the client and make them as aware as possible of the situation
You are attending a Client organised business conference where it is announced that you have been randomly selected as the winner of this months prize draw. It’s a prize of high value. How would you act in this scenario? (Level 2)
a. I would be uncomfortable accepting the bribe in this scenario
b. The prize is of significant value and could be interpreted as a bribe
c. Due to working with the client at the time this is inappropriate and could be seen to affect the way I conduct business with the client.
d. I would respectfully decline the prize and suggest it is made as a charitable donation to a charity of the client’s choice.
e. I would report the situation to my line manager to keep them informed
You receive an invite to attend the Theatre with some members of one of your main clients but they dropped out due to illness at the last minute, would you still attend? (Level 2)
a. In the first instance I would declare this hospitality on my companies gifts and hospitality register
b. I would ensure that the invite was approved and I was authorised to attend
c. Since the clients won’t be present this will not be a genuine business event
d. I would politely decline the hospitality at the client’s expense.
You are bidding for business and the client advises that if you reduce your fee scale by £’X’ you will be in first place and win the business. How would you advise the client? (Level 3)
a. This scenario presents a number of issues:
i. Creates unfair competition
ii. Is disrespectful to the others parties involved in the tender
iii. It is an unsustainable manner in which to conduct business
iv. To achieve the reduced fee the scope of work would also need to be reduced which would then impact the standard of service we could provide
v. This could be interpreted as a bribe
A client takes you out for lunch after a business meeting where they continue to discuss business. The bill for the lunch comes to £200. What should you do? (Level 2)
a. The lunch had a legitimate business purpose so it’s fine to accept the hospitality
b. However, the client should have considered how a £200 bill for lunch would be perceived and it may have been better to choose a more modest restaurant
c. Due to the price of the bill being so high it must be declared on the hospitality register and you should notify your line manager immediately afterwards
d. I would offer to reciprocate however in a more modest fashion as the lavishness of the restaurant could be interpreted as inappropriate and disproportionate
A newly appointed manager working for your clients organisation advises that they are concerned about the terms their predecessors agreed with you. They state not to expect the same terms and advise that if you give a 20% discount they won’t renew your contract. How would you respond? (Level 2)
a. This is a matter of renegotiating contract terms and can’t be seen as a bribe.
b. Advise that we would consider offering the saving however our level of service and resource would need to be reviewed in line with the reduction
c. Ask yourself if the original fee is considered good value and a fair and reasonable sum. Would the discount be considered as devaluing the profession?
d. It may not be sustainable if we wouldn’t be able to provide the high standard of service
e. A fee and resource schedule would need to be prepared to determine if the discount and adequate level of service can be offered
A tender is in progress for which you had submitted a bid. You get a call from the client who advises that they are involved as a parent in a junior theatre group. The client says they have read about your firms community initiatives and ask you to sponsor their annual performance. They say they are desperately short of funds and that they have donated money themselves. How would you advise the client in this scenario? (Level 2)
a. Tread carefully here, the client may not be soliciting a bribe in this situation. Nevertheless, as a tender is in progress, any sponsorship made could be perceived as an undue influence and a bribe
b. In the first instance you would explain this to the client and decline to make a donation
c. To ensure transparency, you would also report the request to your line manager
d. Depending on advice from Senior Management it may be appropriate to escalate this to your firms whistleblowing policy
- A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of the tender they are about to submit for the project you are working on. How would you respond? (Level 2)
a. Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against company policy and could be an offence under the UK Bribery Act 2010
b. If this was the first time, it would be okay to decline and explain that such an invitation is inappropriate
c. However, if the supplier is persistent and there is a red flag in that they want to discuss things that they cannot put into writing, it should be reported to senior management
d. This can be classed as unfair competition as anything discussed about the tender could provide an unfair advantage to the other contractors submitting a tender
e. Not acting with integrity or respectfully to fellow contractors.
