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Module 3

A Code of Ethics and Professional Conduct establishes principles for integrity, objectivity, and accountability in professional settings. It is essential for guiding behavior, promoting trust, and preventing misconduct across various professions. The document also emphasizes the importance of confidentiality, whistleblowing, and the distinction between bribes and gifts in maintaining ethical standards.

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0% found this document useful (0 votes)
9 views10 pages

Module 3

A Code of Ethics and Professional Conduct establishes principles for integrity, objectivity, and accountability in professional settings. It is essential for guiding behavior, promoting trust, and preventing misconduct across various professions. The document also emphasizes the importance of confidentiality, whistleblowing, and the distinction between bribes and gifts in maintaining ethical standards.

Uploaded by

200108.cse
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Codes of Ethics and Professional Conduct

A Code of Ethics and Professional Conduct outlines the principles and standards that guide
behavior in a professional setting. It is designed to ensure integrity, accountability, and
ethical decision-making within an organization or profession.

1. Integrity
Definition: Professionals must act honestly and uphold strong moral principles, even when
it’s difficult.
Example:
An accountant discovers a small but significant error in financial reporting. Instead of hiding
it to protect the company's image, they report it to management and correct the records.

2. Objectivity
Definition: Professionals should remain impartial and not let bias, conflict of interest, or
undue influence affect their decisions.
Example:
An HR manager interviewing a close friend for a job recuses themselves from the hiring
panel to avoid favoritism.

3. Professional Competence
Definition: Professionals must maintain and continually update their knowledge and skills to
provide high-quality services.
Example:
A software engineer regularly attends workshops and online courses to stay updated with the
latest programming languages and cyber-security practices.

4. Confidentiality
Definition: Information obtained in a professional setting must not be disclosed to
unauthorized parties.
Example:
A nurse learns confidential medical information about a celebrity patient and refrains from
discussing it, even with close family or friends.

5. Professional Behavior
Definition: Professionals should comply with laws and avoid actions that discredit their
profession.
Example:
A lawyer avoids making misleading advertisements about guaranteed case outcomes,
respecting legal advertising ethics.

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6. Respect and Fairness
Definition: Professionals must treat others with dignity, fairness, and respect regardless of
personal or cultural differences.
Example:
A manager ensures that team members from different backgrounds have equal opportunities
for training and promotion.

7. Accountability
Definition: Individuals must take responsibility for their actions and decisions.
Example:
A project manager admits to missing a deadline and works with the team to find a corrective
path, rather than blaming others.

Importance of a Code of Ethics


 Promotes trust and professionalism.
 Minimizes legal risks.
 Enhances company reputation.
 Encourages ethical decision-making.

Importance of Codes of Ethics in Professional Organizations


A Code of Ethics serves as a foundational document that outlines expected behaviors,
values, and responsibilities for members of a professional organization. It plays a vital role in
maintaining professionalism, trust, and integrity in the workplace and society.

1. Builds Trust and Credibility


Explanation:
When professionals follow a clear ethical code, it builds trust with clients, colleagues, and the
public. Trust is essential for long-term success.
Example:
A financial advisor who consistently offers transparent advice based on clients’ best
interests—rather than commissions—builds trust and gains more clients over time.

2. Promotes Professionalism
Explanation:
A Code of Ethics defines standards of conduct, which helps professionals act with
responsibility, integrity, and consistency.

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Example:
In the legal field, ethical codes prohibit lawyers from communicating with a client of another
lawyer without permission, maintaining professionalism in inter-firm relationships.

3. Guides Decision-Making
Explanation:
In difficult or unclear situations, a Code of Ethics provides guidance, helping individuals
choose the most ethical course of action.
Example:
An IT professional discovers vulnerability in a client’s software. Instead of ignoring it, the
ethical code guides them to disclose it promptly and responsibly.

4. Prevents Misconduct and Legal Issues


Explanation:
Adhering to ethical standards reduces the risk of unethical behavior, misconduct, and
potential legal liabilities.
Example:
A healthcare organization that enforces patient privacy policies aligned with its Code of
Ethics avoids breaches of HIPAA regulations and legal consequences.

5. Enhances Organizational Culture


Explanation:
A strong ethical code fosters a respectful and fair workplace, encouraging teamwork and
accountability.
Example:
An engineering firm with a zero-tolerance policy for harassment, based on its ethical code,
creates a safe and inclusive environment for all employees.

6. Improves Public Image and Reputation


Explanation:
Organizations known for ethical behavior are more likely to earn public support, media
goodwill, and customer loyalty.
Example:
A company that sources raw materials ethically and treats workers fairly is more likely to be
viewed favorably by consumers and the public.

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Importance of Codes of Ethics in Professional Organizations :
A Code of Ethics plays a critical role in guiding professional behavior and
shaping ethical organizational culture. It:

1. Builds trust and credibility by fostering transparency and integrity.

2. Promotes professionalism through defined conduct standards.

3. Guides ethical decision-making during complex situations.

4. Prevents misconduct and legal issues by setting clear expectations.

6. Enhances organizational culture by encouraging fairness and respect.

7. Improves public image by aligning actions with societal values.

8. Ensures consistency in behavior across roles and locations.

Extended Benefits of a Code of Ethics


A Code of Ethics plays a critical role in guiding professional behavior and
shaping ethical organizational culture. It:

Builds trust and credibility by fostering transparency and integrity.

Promotes professionalism through defined conduct standards.

Guides ethical decision-making during complex situations.

Prevents misconduct and legal issues by setting clear expectations.

Enhances organizational culture by encouraging fairness and respect.

Improves public image by aligning actions with societal values.

Ensures consistency in behavior across roles and locations.


7. Ensures Consistency in Behavior
Explanation:
A Code of Ethics provides a consistent framework for employees across departments and
levels to behave uniformly.
Example:
In a multinational corporation, the ethical code ensures that both headquarters and regional
offices follow the same standards for transparency and honesty.

Review of Ethical Codes from Various Professions


Ethical codes are essential in professional fields to ensure responsible, fair, and trustworthy
behavior. Different professions tailor their codes of ethics to suit their unique challenges and
responsibilities. Below is a review of key ethical codes from prominent professional
organizations:

1. IEEE – Institute of Electrical and Electronics Engineers


Field: Engineering, Technology.
Purpose: Promote safety, honesty, and responsible use of technology.
Core Principles:
 Hold paramount the safety, health, and welfare of the public.
 Avoid real or perceived conflicts of interest.
 Be honest and realistic in stating claims or estimates.
 Improve the understanding of technology and its consequences.
Example:
An engineer working on a self-driving car system identifies a potential safety flaw in the
sensor algorithm. According to IEEE's Code of Ethics, they are ethically required to report
the issue and prevent harm—even if it delays the product launch.

2. AMA – American Medical Association


Field: Medicine and Healthcare.
Purpose: Ensure ethical patient care, confidentiality, and respect for life.
Core Principles:
 Respect patient autonomy and confidentiality.
 Provide competent medical service with compassion.
 Improve community health.

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 Maintain professional competence and honesty.
Example:
A doctor refuses to prescribe medication a patient requests because it’s not medically
necessary. Instead, the doctor explains alternatives and documents the reasoning—upholding
AMA's code of prioritizing patient well-being and medical ethics.

3. ACCA – Association of Chartered Certified Accountants


Field: Accounting and Finance.
Purpose: Ensure financial integrity, transparency, and professional conduct.
Core Principles:
 Integrity
 Objectivity
 Professional competence and due care
 Confidentiality
 Professional behavior
Example:
An accountant at a multinational company is pressured to alter financial figures to boost stock
value. Guided by ACCA’s code, they refuse and report the issue to an oversight body,
maintaining transparency and legality.

4. ACM – Association for Computing Machinery


Field: Computing and Information Technology.
Purpose: Promote responsible computing, protect users’ privacy, and avoid harm.
Core Principles:
 Contribute to society and human well-being.
 Avoid harm to others.
 Be honest and trustworthy.
 Respect privacy and confidentiality.
 Ensure fairness and non-discrimination in algorithms.
Example:
A developer discovers that a recruitment algorithm disproportionately filters out candidates
from certain backgrounds. Under ACM’s ethical code, they halt the rollout and revise the
system to eliminate bias.

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Summary of Ethical Codes from Major Professions

Organization Field Focus of Ethics Code Notable Areas


Engineering, Safety, honesty, societal Emerging tech, AI
IEEE
Technology impact responsibility
Medicine, Patient care, confidentiality, Telemedicine, informed
AMA
Healthcare professional behavior consent
Accounting, Global financial practices,
ACCA Integrity, objectivity, due care
Finance fraud prevention
Respect for privacy, fairness, Data use, algorithmic
ACM Computing, IT
honesty fairness, cyber-security

Responsibilities of Professionals to Clients, Employers, and Society


Professionals hold a position of trust and authority, which requires them to balance their
obligations to multiple stakeholders: clients, employers, and society. Ethical and responsible
conduct is vital in maintaining this trust.

1. Responsibilities to Clients
Professionals must prioritize the interests of their clients while maintaining honesty,
confidentiality, and high standards of service.
Key Responsibilities:
 Confidentiality: Protect client information from unauthorized disclosure.
 Competence: Provide services within their area of expertise and stay updated.
 Loyalty and Trust: Avoid conflicts of interest and act in the client’s best interest.
 Transparency: Clearly communicate fees, risks, and terms.
Example:
A financial advisor recommends investment options suitable for the client’s risk profile,
rather than products that offer a higher commission.

2. Responsibilities to Employers
Professionals have an obligation to perform their duties faithfully, protect company interests,
and act as trustworthy representatives of the organization.
Key Responsibilities:
 Integrity: Avoid fraud, deception, or theft in any form.
 Loyalty: Do not disclose proprietary or confidential information.
 Efficiency: Use time and resources wisely and avoid waste.

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 Accountability: Take responsibility for actions and decisions in the workplace.
 Professionalism: Work efficiently and support the organization’s goals.
Example:
An IT manager refuses to install pirated software on office computers, even under pressure,
to protect the company from legal and ethical violations.

3. Responsibilities to Society
Beyond clients and employers, professionals are part of a broader social structure. They must
act in ways that benefit the public and minimize harm.
Key Responsibilities:
 Public Safety: Ensure that work does not harm people or the environment.
 Fairness and Justice: Promote equality and non-discrimination.
 Environmental Responsibility: Reduce negative impact on natural resources.
 Whistleblowing: Report unethical or illegal practices when necessary.
Example:
An engineer working on a construction project identifies unsafe structural flaws. Even though
fixing them is costly, they report it to ensure public safety.

Whistleblowing and Confidentiality


Both whistleblowing and confidentiality are crucial ethical concepts in professional
conduct. While they may seem to conflict in some situations, both aim to uphold ethical
behavior, protect individuals, and promote accountability.

1. Confidentiality
Definition:
Confidentiality is the ethical and legal duty of professionals to protect sensitive, private, or
proprietary information obtained during their work from unauthorized disclosure.
Importance:
 Builds trust between professionals and clients/employers.
 Ensures compliance with laws (e.g., GDPR, HIPAA).
 Protects intellectual property and private data.
Example:
A therapist is legally and ethically bound not to disclose a patient's personal issues discussed
during therapy, unless the patient gives consent or there is an immediate risk of harm.

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2. Whistleblowing
Definition:
Whistleblowing occurs when a professional exposes unethical, illegal, or harmful actions
within an organization to authorities, regulators, or the public—often in breach of normal
confidentiality rules.
Types of Whistleblowing:
 Internal: Reporting the issue to someone within the organization.
 External: Reporting to an outside authority, media, or regulator.
Importance:
 Prevents fraud, corruption, and harm.
 Protects the public interest.
 Promotes accountability and transparency.
Example:
An employee at a chemical company reports to environmental authorities that the company is
illegally dumping toxic waste into a river. Even though the information is confidential, the
public's right to safety justifies the disclosure.

Balancing the Two


Whistleblowing and confidentiality can conflict. Professionals must balance:
 The duty to keep information private (confidentiality),
 Against the duty to prevent harm or illegal acts (whistleblowing).

Guidelines for Ethical Whistleblowing:


1. Attempt internal resolution first.
2. Ensure the concern is genuine, significant, and evidence-based.
3. Use legal and protected channels when going public.
4. Protect the identity of others unless disclosure is necessary.

Real-World Scenario
Scenario:
An auditor discovers that a senior executive is embezzling funds. Confidentiality policies
discourage discussing client details outside of the firm, but remaining silent may allow
continued fraud.

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Ethical Action:
The auditor reports the issue to a senior compliance officer (internal whistleblowing). When
no action is taken, they contact the regulatory authority (external whistleblowing), backed by
documentation.

Comparison Table
Aspect Confidentiality Whistleblowing
Definition Keeping private information secure Reporting misconduct or danger
Goal Protect trust and sensitive information Prevent harm and expose wrongdoing
Risks Legal liability if breached Retaliation, job loss, legal action
Ethical Duty To clients/employers To public interest and justice
Example Not sharing patient health records Reporting unsafe medical practices

Bribe and Gift


The conflict arises when accepting large gifts from the suppliers. Bribe is different from a
gift. The following table shows a comparison of the nature of bribe and gift.

Test Bribe Gift


Timing Given before Given after
Small amount, articles of daily
Cost of item Large amount
use
Quality of product Poor Good/ High
Giver is a friend Yes No
Transparency Made in secret Made in open
Expect a favor or thanking for
Motive Expect undue favor
the favor
Consequences on Damaging the goodwill and
No damage is involved
organization’s goodwill reputation

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