Unit 6: Professionalism and Codes of Conduct

Question 1

What is a profession?

Answer 1

A disciplined group of individuals who adhere to ethical standards, generally with special knowledge and skills in a specific discipline.

Question 2

What is a professional?

Answer 2

A member of a profession.

Question 3

What is does professionalism comprise of?

Answer 3

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.

Question 4

What is Professionalisation?

Answer 4

The pattern of how a profession develops, as well as the process of becoming a profession.

Question 5

What are the distinguishing features of a profession?

Answer 5

Specialised knowledge and skills

Question 6

Does professional behaviour include compliance with ethical standards, laws, and regulations?

Answer 6

Yes

Question 7

What do codes of ethics/conduct do?

Answer 7

Set out the minimum accepted standards of behaviour for members of a profession, an industry or an organisation.

Question 8

What are the six universal moral values that underpin all codes of conduct and ethics?

Answer 8

1. Trustworthiness (integrity/honest/transparency, etc.)
2. Respect for human rights and dignity
3. Responsibility (accountability)
4. Fairness (due process, impartiality, etc.)
5. Caring and doing no harm
6. Citizenship (obeying laws, policies, rules and protecting the environment)

Question 9

Codes of ethics (or codes of conduct) are usually described as either rules-based or
principles-based. What is the rules-based approach?

Answer 9

• Prescriptive - setting out clearly what a member or employee can and cannot do.
• Generally outline consequences of breaches

Question 10

What is the challenge of rules-based codes of conduct?

Answer 10

Their focus on compliance is designed to leave little room for misunderstanding but they cannot cover every possible situation.

Question 11

Codes of ethics (or codes of conduct) are usually described as either rules-based or
principles-based. What is the principles-based approach?

Answer 11

Set out broad, ‘high-level’ principles for
members to comply with e.g., “treat customers fairly”.

Question 12

True or false: most codes will be a combination of rules-based and principles-based approaches?

Answer 12

True

Question 13

The Banking Code of Practice is an initiative of which organisation?

Answer 13

The Australian Banking Association (ABA)

Question 14

What oath was incubated at the Ethics Centre as an industry-led initiative?

Answer 14

The Banking and Finance Oath (The BFO)

Question 15

What are the benefits of the Banking and Finance Oath (BFO)?

Answer 15

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.

Question 16

Why is ethical and professional behaviour vital to the banking industry?

Answer 16

Because it is an industry based on trust and reputation.

Question 17

What are some examples of the impact of unethical and unprofessional behaviour?

Answer 17

1. Global scandals
2. Loss of public trust/confidence
3. Unethical behaviour at work

Question 18

What are 5 threats to professionalism?

Answer 18

1. Self interest
2. Self review
3. Advocacy
4. Familiarity
5. Intimidation

Question 19

Explain this threat to professionalism: Self interest

Answer 19

A financial (or other) interest inappropriately influences your judgement or behaviour.

Question 20

Explain how this is a threat to professionalism: Self review

Answer 20

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.

Question 21

Explain this threat to professionalism: Advocacy

Answer 21

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.

Question 22

Explain how this is a threat to professionalism: Familiarity

Answer 22

Due to a long or close relationship with a customer you may be over-sympathetic to their
interests, leading to a familiarity threat.

Question 23

How do banks aim to mitigate the familiarity threat?

Answer 23

1. Rotating peoples’ roles on a regular basis.
2. Involving others who do not have a personal relationship with the client.
3. Obtaining independent reports or reviews.

Question 24

Explain how this is a threat to professionalism: Intimidation

Answer 24

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.

Question 25

What are some safeguards to threats to professionalism?

Answer 25

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.

Question 26

What is whistleblowing?

Answer 26

Whistleblowing provides a mechanism to identify and call out wrongdoing and harm to customers, organisations, and the community.

Question 27

What is a whistleblower?

Answer 27

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.

Question 28

What is an easy mnemonic for FINSIA’s 4 values?

Answer 28

IPOR

I = Integrity
P = Professionalism
O = Objectivity
R = Respect