Module 3
Module 3
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.
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.
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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:
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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.
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Summary of Ethical Codes from Major Professions
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.
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.
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
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