Ethical & Professional Standards

Ethics are the shared beliefs and principles about acceptable conduct, and ethical conduct is behavior that follows those principles; codes and standards formalize them for a group.

A code of ethics communicates the values and minimum standards a group commits to, signaling trustworthiness to clients and society and distinguishing a profession from an ordinary occupation.

People consistently overestimate how ethically they will act under pressure, so they underprepare for tempting situations and rationalize lapses; humility and pre-set rules help counter it.

Ethics are shared beliefs about right conduct; law is the minimum codified by government. Some legal acts are unethical and some ethical acts may not be legal, so compliance with law alone does not guarantee ethical behavior.

Because of information asymmetry between professionals and clients, the fiduciary nature of the relationship, and the systemic trust markets need; clients must rely on advisers they cannot fully monitor.

A profession is an occupation built on specialized knowledge and a shared code of conduct that serves clients, employers, and society; it maintains trust by enforcing high standards and self-regulation.