Unit 6: Professionalism and Codes of Conduct Flashcards
Describe how industry-based codes of conduct impact bank operations. Explain professionalism and its potential threats.
What is a profession?
A disciplined group of individuals who adhere to ethical standards, generally with special knowledge and skills in a specific discipline.
What is a professional?
A member of a profession.
What is does professionalism comprise of?
The personally held beliefs about one’s own conduct as a professional. It’s often linked to the upholding of the principles, laws, ethics and conventions of a profession as a way of practice.
What is Professionalisation?
The pattern of how a profession develops, as well as the process of becoming a profession.
What are the distinguishing features of a profession?
Specialised knowledge and skills
Does professional behaviour include compliance with ethical standards, laws, and regulations?
Yes
What do codes of ethics/conduct do?
Set out the minimum accepted standards of behaviour for members of a profession, an industry or an organisation.
What are the six universal moral values that underpin all codes of conduct and ethics?
- Trustworthiness (integrity/honest/transparency, etc.)
- Respect for human rights and dignity
- Responsibility (accountability)
- Fairness (due process, impartiality, etc.)
- Caring and doing no harm
- Citizenship (obeying laws, policies, rules and protecting the environment)
Codes of ethics (or codes of conduct) are usually described as either rules-based or
principles-based. What is the rules-based approach?
- Prescriptive - setting out clearly what a member or employee can and cannot do.
- Generally outline consequences of breaches
What is the challenge of rules-based codes of conduct?
Their focus on compliance is designed to leave little room for misunderstanding but they cannot cover every possible situation.
Codes of ethics (or codes of conduct) are usually described as either rules-based or
principles-based. What is the principles-based approach?
Set out broad, ‘high-level’ principles for
members to comply with e.g., “treat customers fairly”.
True or false: most codes will be a combination of rules-based and principles-based approaches?
True
The Banking Code of Practice is an initiative of which organisation?
The Australian Banking Association (ABA)
What oath was incubated at the Ethics Centre as an industry-led initiative?
The Banking and Finance Oath (The BFO)
What are the benefits of the Banking and Finance Oath (BFO)?
The BFO contributes to a better society, building trust and confidence in financial services
by re-asserting the ethical foundation of the industry beyond regulation and compliance.
Why is ethical and professional behaviour vital to the banking industry?
Because it is an industry based on trust and reputation.
What are some examples of the impact of unethical and unprofessional behaviour?
- Global scandals
- Loss of public trust/confidence
- Unethical behaviour at work
What are 5 threats to professionalism?
- Self interest
- Self review
- Advocacy
- Familiarity
- Intimidation
Explain this threat to professionalism: Self interest
A financial (or other) interest inappropriately influences your judgement or behaviour.
Explain how this is a threat to professionalism: Self review
If you are auditing or evaluating yourself or others, you may have biases that cause incorrect judgement or evaluation.
Example: At some stage you are involved in an audit of the effectiveness of a procedure you developed in a previous role. You could not be objective.
Explain this threat to professionalism: Advocacy
This is the threat that you will promote a customer’s or employer’s position to the extent that your objectivity is compromised.
For example, you provide a reference for a customer. You must ensure that your reference is based on relevant facts rather than your personal relationship.
Explain how this is a threat to professionalism: Familiarity
Due to a long or close relationship with a customer you may be over-sympathetic to their
interests, leading to a familiarity threat.
How do banks aim to mitigate the familiarity threat?
- Rotating peoples’ roles on a regular basis.
- Involving others who do not have a personal relationship with the client.
- Obtaining independent reports or reviews.
Explain how this is a threat to professionalism: Intimidation
The intimidation threat occurs when you are deterred from acting appropriately due to
actual or perceived pressures , including attempts by another to influence you.
Examples include threats of litigation by a customer against the bank.
What are some safeguards to threats to professionalism?
These are measures that may eliminate threats or reduce them to an acceptable level.They include:
* Meeting minimum education and training to enter the profession.
* Completing ongoing Continuing Professional Development (CPD).
* Adherence to regulations and standards
* Controls, agreements, and discipline where required.
What is whistleblowing?
Whistleblowing provides a mechanism to identify and call out wrongdoing and harm to customers, organisations, and the community.
What is a whistleblower?
In general terms, a whistleblower is a person
who reports information, usually through the course of their employment, concerning illegal
or unethical activities or misconduct within an organisation.
What is an easy mnemonic for FINSIA’s 4 values?
IPOR
I = Integrity
P = Professionalism
O = Objectivity
R = Respect
