Revised Code of Ethics - Completed (2024)

Objective

Background

In June 2005, the IESBA (formerly the Ethics Committee) issued a revisedCode of Ethics for Professional Accountants. The revised Code establishes a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of ethics:

Integrity.

    • A professional accountant should be straightforward and honest in all professional and business relationships


Objectivity.

    • A professional accountant should not allow bias, conflict of interest or undue influence of others.


Professional Competence and Due Care.

    • A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services.

Confidentiality.

    • A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties.

Professional Behavior.

    • A professional accountant should comply with the relevant laws and regulations and should avoid any action that discredits the profession.
Revised Code of Ethics - Completed (2024)

FAQs

What happens if you break the code of ethics? ›

Breaking the code of ethics can result in termination or dismissal from the organization. A code of ethics is important because it clearly lays out the rules for behavior and provides the groundwork for a preemptive warning.

Is code of ethics enough? ›

But the problem is that most studies find only little or no effect of these policies. In fact, a meta-analysis found that the existence of an ethical code of conduct in some cases may be linked to more unethical decisions.

What happens when the code of ethics is not followed? ›

Not following this code could damage your reputation, and for individuals, could even result in disciplinary action or termination. Therefore, it's vital that you're familiar with the code of ethics and stick to it.

What happens if a social worker violates the code of ethics? ›

Enforcement. If a social worker breaks the rules, professional licensing means that the state or province may take disciplinary action against the social worker. When this happens, the social worker must comply with the board's sanctions.

What is an example of a violation of the code of ethics? ›

TYPES OF ETHICS VIOLATIONS
  • Fraud or deceptive practices.
  • Subversion.
  • Unprofessional conduct.
  • Scope-of-practice violations.
  • Being unfit to practice.
  • Improper management of patient records.
  • Violation of state laws, federal laws, or regulatory rules.
  • Failure to report violations or errors.

What are the penalties for violating the code of ethics? ›

You may also face a loss of company privileges ranging from the respect of your boss and peers to being able to attend important meetings. Further ramifications could include suspension and termination of employment, and depending on the type of breach or violation, you could even face jail time.

What are the limitations of the code of ethics? ›

One of the limitations of the code of ethics is when there is a lack of commitment to the set code of ethics guidelines. In an organization, the management may set rules that the employees need to adhere to, but in some cases, none of the management follows the rules.

What are the 7 rules of the code of ethics? ›

7 Ethical Principles
  • Honesty and Integrity.
  • Fairness of commercial practices.
  • Data confidentiality.
  • Professional behavior.
  • Professional skills and added value.
  • Social respect.
  • Environmental care.

What is the most important part of the code of ethics? ›

One of the most important things to include in your code of ethics is a list of the company's core values or ethical standards. These guide the entire document, setting the ethical and cultural tone for the company. You can use these values as an outline for the policy.

Can you sue someone for being unethical? ›

Whether an act is oppressive, immoral, unscrupulous, injurious, or unethical, you may have legal options to get justice. These cases are part of business torts. Business torts involve misleading ads, fraud, misrepresentation, overcharging customers, or defaming another business's services or products.

What is unethical behavior? ›

Unethical behavior can be defined as actions that are against social norms or acts that are considered unacceptable to the public. Ethical behavior is the complete opposite of unethical behavior. Ethical behavior follows the majority of social norms and such actions are acceptable to the public.

Is a code of ethics legally binding? ›

Professional ethics are guidelines and principles, which are different from rules and regulations. A breach of law and a breach of professional ethics may result in penalties and other consequences. Laws are legally binding whereas codes of ethics are meant to be profes- sionally binding.

What are the consequences of breaking code of ethics? ›

The range of penalties includes censure, removal from office, permanent disqualification from holding any state position, restitution, decades in prison, and fines up into the hundreds of thousands of dollars. Not all ethics violations are treated equally.

What are some examples of unethical behavior in social workers? ›

Accepting gifts or bribes that could influence or bias a social worker's ability to be fair and impartial. Failing to take reasonable steps to protect clients or to provide them with the necessary care. Committing financial fraud against clients or government agencies. Terminating a relationship with a client ...

How can a violation of the code of ethics be disciplined? ›

As discussed above, such ethics rules are not grounds for administrative discipline by CalBRE. Only “unlawful” acts form the basis for such discipline, and an unethical act is not necessarily unlawful (although it might be).

What happens when ethics are violated? ›

The range of penalties includes censure, removal from office, permanent disqualification from holding any state position, restitution, decades in prison, and fines up into the hundreds of thousands of dollars. Not all ethics violations are treated equally.

What are the consequences of breaching the code of ethics? ›

Consequences of a suspected breach in a code of conduct can range from verbal or written warnings to suspension, termination, and even legal ramifications, depending on the severity of the violation.

What happens when the code of conduct is violated? ›

Code of conduct violations can take the form of academic dishonesty, workplace misconduct and professional ethics breaches. Consequences for violating a code of conduct range from verbal or written warnings to suspension/probation and termination/expulsion with legal implications.

What happens if you break the code of practice? ›

If your conduct and behaviour does not meet the high standards set out in the Code of Conduct, your manager will take appropriate action to stop the misconduct continuing and to prevent it from happening in the future. Managers will use the disciplinary procedure if they feel that it is necessary.

Top Articles
Latest Posts
Article information

Author: Golda Nolan II

Last Updated:

Views: 6181

Rating: 4.8 / 5 (78 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Golda Nolan II

Birthday: 1998-05-14

Address: Suite 369 9754 Roberts Pines, West Benitaburgh, NM 69180-7958

Phone: +522993866487

Job: Sales Executive

Hobby: Worldbuilding, Shopping, Quilting, Cooking, Homebrewing, Leather crafting, Pet

Introduction: My name is Golda Nolan II, I am a thoughtful, clever, cute, jolly, brave, powerful, splendid person who loves writing and wants to share my knowledge and understanding with you.