Professional Ethics

Michael J Mooring, LLM, Dip Arb, MSCSI, MRICS

 Introduction

• In this evening’s lecture I will:-

• Define the term “professional ethics” and explain why it is
particularly important to construction professionals
• Identify the 5 basic assumptions that underpin our
understanding of the subject
• Outline the provisions within the various codes of conduct
that apply to professionals practicing in the Irish property
and construction industry
• Describe the guidance available from the RICS / SCSI to
members on aspects of their practice

Michael J Mooring LLM, Dip Arb, ASCSI, MRICS

Definition of the term Ethics

• Defined in Oxford English Dictionary as the “science of

morals, moral principles or code”
• Moral defined as the “standard of conduct respected
by good men independently of positive law and
religion”
• The definition of Professional Ethics endorsed by the
RICS/SCSI is the “giving of one’s best to ensure that
client’s interests are properly cared for, but in doing so
the wider public interest is also recognised and
respected”
Why Ethics are Important to Professionals

• The service offered by a professional involves:-

• A particular kind of relationship with a client
• A complex subject matter
• A client being incapable of making informed
judgements

• The result being that the client is therefore entirely

dependent on the professional for advice and guidance
The Five Basic Assumptions

• Professional ethics is a process

• Human behaviour is caused
• Actions have consequences
• Good ethical business practice rests on mutual
vulnerability
• What is ethical depends on the individuals point of
view
• Source: Christina Hirst; Ethics and Professional Conduct for Surveyors 2nd Ed (RICS 2010)
Professional ethics is a process

• It is not a fixed text to be learnt once

• It is a way of reviewing behaviour against constantly
changing standards
• What may be ethical today or in a particular society
may be reviewed differently by others or at another
time
Human Behaviour is caused

• There is a motive for all human behaviour e.g. financial

gain; power; compassion
• The way in which a professional behaves may be
influenced by:
• Internal Influences (Unique to each person)
• External influences (Applies to everyone)
 Actions have consequences

• Every force has an equal and opposite reaction

• Chartered Surveyors have traditionally been very
conservative in the way they conducted their practice
• In doing so they were able to ride out the peaks and
troughs of construction activity
Good Ethical business practice

• Good ethical business practice rests on mutual

vulnerability
• The way we are treated depends on how we treat
others
• Respect is not a right and it must be earned
Important Professional Ethics Issues

• Members must uphold and act in an ethical and

responsible manner in areas such as:
• Gifts / Hospitality – bribes / inducements
• Equal opportunity, discrimination and sexual
harassment
• Conflicts of Interest
• Money laundering
• Disclosure of confidential company information
• Alcohol and Drug abuse
• Copyright and ownership of files
Consequences of Unethical Behaviour

• For individual members the consequences of being

involved either directly or indirectly are potential very
serious and involve:-
• Criminal prosecution
• Fines
• Imprisonment
• Loss of professional status
• Loss of employment
• Civil claims for compensation
• Damage to reputation
Principles of Professional Conduct

• Honesty
• Efficiency
• Loyalty
• Integrity
• Competence
• Confidentiality
• Ability to Communicate
• Of the foregoing it is failure to communicate that
generates the majority of complaints to the SCSI
SCSI Bye Law 15 - Rules of Conduct

• 15.2.1 (a)
• Every member shall conduct himself in a manner
befitting membership of the company
• 15.2.2 A member shall be liable to disciplinary
action…, by reason of:-
• Conduct liable to bring the company into disrepute
• Serious professional incompetence
• Failure to adhere to Byelaws / Regulations
• Having been convicted of a criminal offence which
could result in a custodial sentence
SCSI Bye Law 15 - Rules of Conduct

• Members shall at all times act with integrity and avoid

conflicts of interest and avoid any actions or situations
that are inconsistent with its or their professional
obligations
Code of Practice for Property Services
Providers (21 May 2014)

• The code sets out the minimum standards to be

expected of Auctioneers and Estate Agents
• While the code is voluntary at present once the
Authority is put on a Statutory basis the Authority will
have the power to make the code legally binding
• PSP should recognise and accept that they have a
responsibility to the public and should at all times in
the conduct of their professional business act in a
manner that affirms this
Code of Practice for Property Services
Providers (21 May 2014)

• …in their day to day practices, adhere to an ethical

standard of business practice and behave with integrity
and fairness towards the public, their clients,
customers and fellow professionals bearing in mind
that the primary duty of a PSP is to his client
Code of Professional Conduct
Standards

• Applies to construction professionals referred to in the

Building Control Act 2007
• …in their day to day practices, adhere to an ethical
standard of business practice and behave with
independence, integrity and fairness towards the
public, their clients and fellow professionals
• …in the conduct of their business act in a manner
consistent with the good reputation of the profession
and refrain from any conduct that might discredit it…
but that does not include “normal competitive
activity”
RICS Rules of Conduct for Members
(Version 6)

• Ethical behaviour
• Members shall at all times act with integrity and avoid
conflicts of interest and avoid any actions or situations
that are inconsistent with their professional obligations
• Competence
• Service
• Continuing Professional Development (CPD)
• Solvency
• Information to RICS
• Co-operation
Recording CPD Activities

• When adding an activity members are asked the

following questions:-
• Did the learning activity help you maintain a relevant
and current understanding of SCSI Professional and
Ethical Standards?
• If it did, then provide a brief summary of the activity
• The SCSI produces practice statements, codes of
practice, guidance notes and information papers for
the property, land and construction surveying
disciplines
Recording CPD Activities

• Members also have access to CPD resources which

includes numerous videos and presentations
• These are available to download for free by SCSI
members
Guidance from the RICS

• RICS (2000a) Professional Ethics Guidance Notes;

Part 1: Introduction London RICS
• Document listed 9 Core values
• Included 8 examples of ethical issues and dilemmas
• RICS (2000a) Professional Ethics Guidance Notes;
Part 2: Case Studies London RICS
• Attempted to provide a framework for analysis of the
various ethical issues and dilemmas but a recurrent
theme was that “It is not easy to define “solutions” to
problems like these
Guidance from the RICS

• RICS Help Sheet: Maintaining Professional and Ethical

Standards
• An additional 3 Core values were added
• Case Studies were removed
• To be used when reviewing your current practice and
procedures to identify anything that may be considered
unethical practice
• NOT A SET OF RULES TO BE MEMORISED
Guidance from the RICS

• RICS Help Sheet: Maintaining Professional

and Ethical Standards (Version 2) effective
from 1st Dec 2011
• 12 Core Values retained
• Reference made to implications of the decision
in Merret v Babb regarding run-off PII cover
RICS Global Professional & Ethical
Standards

• All members must be able to demonstrate that they:

• Act with Integrity
• Always provide a high standard of service
• Act in a way that promotes trust in the profession
• Treat others with respect
• Take responsibility
• There are now only 5 standards but they cover
everything that the previous 12 values covered but
they have been designed to be much clearer and to be
applicable globally
RICS Global Professional & Ethical
Standards

• There are supporting levels of information available for

each standard including:
• a brief explanation of what each standard means
• examples of the types of actions or behaviours and
questions that members will wish to consider
• a range of case studies that illustrate each of the
standards. These examples are real case studies they
have collected and link to ethical issues that relate to
different specialty areas within surveying and also
different geographical areas.
RICS Case Studies

• Case Study A – A Valuer’s Values

• Case Study B – Copyright
• Case Study C – Taking Orders
• Case Study D – The action of others
• Case Study E – Conflicts
Act with integrity

• Be honest and straightforward in all that you do.

• This standard includes, but is not limited to, the
following behaviours or actions:
• Being trustworthy in all that you do
• Being open and transparent in the way you work.
• Respecting confidential information of your clients and
potential clients
• Not taking advantage of a client
• Not allowing bias, conflict of interest or the undue
influence of others to override your professional or
business judgements and obligations
Act with integrity

• Making clear to all interested parties where a conflict of

interest, or even a potential conflict of interest, arises
between you or your employer and your client
• Not offering or accepting gifts, hospitality or services,
which might suggest an improper obligation
• Acting consistently in the public interest when it comes
to making decisions or providing advice
Key questions you could ask yourself

• What would an independent person think of my

actions?
• Would I be happy to read about my actions in the
press?
• How would my actions look to SCSI or my peers?
• How often do I question what I do, not just in relation to
meeting technical requirements but also in terms of
acting professionally and ethically?
• Is this in the interest of my client, or my interest, or the
interest of someone else?
• Do I promote professional and ethical standards in all
that I do?
Mrs C K, Bedfordshire

• Findings
• Mrs K pleaded guilty to an offence of fraud
• She dishonestly used funds for her own use
• Sentenced to 51 weeks in custody but suspended for 2
years
• Penalty
• Expulsion with costs of £ 3,310
Mr R B, Surrey

• Findings
• Student member of the RICS
• Committed 4 offences of money laundering
• Served 2 year prison sentence
• Penalty
• Expelled with no costs (no chance of them being
recovered)
 Mr J McA

• Findings
• Supplying surveying services in your personal capacity to
potential customers of your employer without your
employer’s knowledge
• He did work on the side (“nixer” “foxer”)
• No professional indemnity insurance
• Not registered with the RICS
• Penalty
• Expelled with costs of £ 3,796
Always provide a high standard of
service

• Always ensure your client, or others to whom you have

a professional responsibility, receive the best possible
advice, support or performance of the terms of
engagement you have agreed.
• This standard includes, but is not limited to, the
following behaviours or actions:
• Be clear about what service your client wants and the
service you are providing
• Act within your scope of competence.
• Be transparent about fees and any other costs
Always provide a high standard of
service

• Communicate with your client in a way that will allow

them to make informed decisions
• If you use the services of others then ensure that you
pay for those services within the timescale agreed
Key questions you could ask yourself

• Do I explain clearly what I promise to do and do I keep

to that promise?
• Do I look at ways to improve the service I provide to
my clients?
• How can I help my clients better understand the
surveying services that I am offering?
• Would the client still employ me if they knew more
about me and the workload I have? If not, why not?
• Do I put undue pressure on myself and colleagues
(especially junior colleagues) to do more than we
actually can?
Mr S K

• Findings
• Failure to pay invoice for £ 700 for work done by
another surveyor
• Penalty
• Reprimanded with condition that invoice to be paid
within 28 days
• Costs £ 3,252
Act in a way that promotes trust in the
profession

• Act in a manner, both in your professional life and

private life, to promote you, your firm or the
organisation you work for in a professional and positive
way.
• This standard includes, but is not limited to, the
following behaviours or actions:
• Promoting what you and the profession stand for - the
highest standards globally
• Understanding that being a professional is more than
just about how you behave at work
Key questions you could ask yourself

• Do my actions promote the profession in the best light

possible?
• What is the best way for me to promote trust in myself,
my firm and the profession?
• Do I explain and promote the benefits, the checks and
balances that exist with the professional services that I
provide?
Treat others with respect

• Treat everyone with courtesy, politeness and respect

and consider cultural sensitivities and business
practices.
• This standard includes, but is not limited to, the
following behaviours or actions:
• Always being courteous, polite, considerate to clients
• Never discriminate against anyone for whatever
reason.
• As much as you are able, encourage the firm or
organisation you work for to put the fair and respectful
treatment of clients at the centre of its business culture
Key questions you could ask yourself

• Would I allow my behaviour or the way I make my

decisions to be publicly scrutinised? If not, why not? If
so, what would the public think?
• Are my personal feelings, views, prejudices or
preferences influencing my business decisions?
• How would I feel if somebody treated me this way?
• Do I treat each person as an individual?
Mr A F

• Findings
• Found guilty of sexual harassment and unfair dismissal
of female employee
• Admitted the charge
• Had practiced since 1979 with no previous complaints
• Penalty
• Expelled with costs of £ 4,054
 Mr B M

• Findings
• Convicted of drink driving
• 8 weeks imprisonment and 8 year driving ban
• Had a previous conviction
• Practiced for 40 years with no previous incidents
• Penalty
• Reprimand and £ 500 fine
• No publication locally
• Costs £ 3,268
Mr M R

• Findings
• Had County Court Judgement against him for:-
• Cultivating cannabis (Medicinal?)
• No shotgun licence or fire arms certificate
• Penalty
• Member cannot resign until all proceedings against
him have been completed
• Cautioned with costs of £ 1750
Take responsibility

• Be accountable for all your actions - don't blame

others if things go wrong, and if you suspect
something isn't right, be prepared to take action.
• This standard includes, but is not limited to the
following behaviours or actions:
• Always act with skill, care and diligence
• If someone makes a complaint about something that
you have done, then respond in an appropriate and
professional manner
Key questions you could ask yourself

• Am I approachable?
• Does my firm or organisation have a clear complaints
handling procedure?
• Do I learn from complaints?
• Do I take complaints seriously?
• Am I clear about what the process is within my firm or
the organisation that I work for about raising concerns?
• Have I considered asking for advice from SCSI /
RICS?
Case 2 Mr C, Student Member

• Admitted plagiarising his Critical Analysis Document

• Findings
• Actions showed a lack of integrity, failure to act
honourably, to be accountable for his actions and to
set a good example
• Penalty
• A caution order not to repeat
• Required to pay £ 2,500 in Costs
Mr N S

• Findings
• Submitted a critical analysis which was not his own
work
• Copied critical analysis prepared previously by his
supervisor
• Penalty
• Expelled with costs of £ 5,000
Mr N S (Appeal)

• Findings
• He appealed on the grounds that …”he had been led
astray by the supervisor who invited him to copy his
work”
• Penalty
• Found no reason or justification to overturn the
previous decision to expel him
• Further costs of £ 3,310
Professional and Ethical Standards
Decision Tree

1. Do you have sufficient facts on the issue?

2. Is it legal?
3. Is it in line with the Society’s global and ethical
standards?
4. Have you consulted with appropriate people to make
an informed decision?
5. Do you have a clear reasoning in reaching your
decision? Is your decision informed?
6. Would you be content for your actions to be made
public – in the newspapers or on the Internet
Professional and Ethical Standards
Decision Tree

• IF YOU HAVE ANSWERED YES TO ALL 6

QUESTIONS
• THEN ACT AND REFLECT ON THE OUTCOME!
Conclusions

• Maintaining ethical standards relies to a significant

degree on the moral motivation of the professional
rather than their compliance with a rigid set of rules
• E.g. drivers don’t break speed limits because of the
rules of the road but because of the threat of getting
caught and being punished
• When Professionals are seen to be escaping
punishment after behaving unethically then the whole
membership suffers as the public lose faith in the
integrity of the Society
Conclusions

• It is not easy to define “solutions” to particular ethical

problems but like the “Elephant Test”
• “whether an activity is ethical or not is hard to describe
but easily recognisable when spotted”
• Thank you
References
 CHALKEY, R (1994). A Handbook for Chartered Surveyors -Professional Conduct.
London; RICS Books
 FAN, L HO,C and NG, V. (2001a). A study of quantity surveyor’s ethical
behaviour. Construction Management and Economics 19, pp 19-36
 FELLOWS, R STOREY, C. (). Ethics in Project Briefing. Construction Paper 189, pp
128-134
 GOULD, S. (2006) Laying down the law. RICS Business January pp 30-31
 HIGGINS, P and BRITTON P. (2008) Ethics: The SCL approach and the wider
context. Society of Construction Law Paper 146. London. Society of Construction
Law
 HOGAN, C. (2007). Hang on a second – are you registered? SCS Review
References
 LAVERS, A (2008) Ethics in Construction Law: A review of the position in Eight
European Countries Society of Construction Law Paper 144. London. Society of
Construction Law
 POON, J. (). Professional Ethics for UK Construction Professionals. Construction
Information Quarterly 8 (2) pp 70-76
 RICS (2000) Professional Ethics Guidance Note Part 1 Introduction
 RICS (2003) Professional Ethics Guidance Note Part 2 Case Studies
 STANSBURY, N and STANSBURY C. (2005). Anti-Corruption Code for Individuals
in the Construction and Engineering Industry (England and Wales) Transparency
International (UK) (Discussion Draft)
 STATIONARY OFFICE. (2008) Code of Professional Conduct Standards for
Quantity Surveyors
References
 THORNTON, A (2004) Ethics and Construction Law: Where to Start? Society of
Construction Law Paper 117. London. Society of Construction Law
 UFF, J. (2003). Duties at the legal fringe: ethics in construction law. Society of
Construction Law Paper 115. London. Society of Construction Law
 UFF, J. (2005). Ethics in construction law – two years on. Society of Construction
Law Paper D55. London. Society of Construction Law
 VEE, C; SKITMORE C. (2003) Professional Ethics in the Construction Industry
Engineering, Construction and Architectural Management 10 (2) pp 117-127
 WILLIAMS. G. (2004) Professional Conduct for Chartered Surveyors, A Practical
Guide. Coventry; RICS Books

Michael J Mooring
References

 WEBSITES
 http://www.rics.org/Regulations/Conductcases/findings_180
608.html
 http://www.rics.org/Regulations/Conductcases/disciplinary_
panel_hearing_reg_030908.html
 http://www.rics.org/Regulations/Conductcases/finding_eato
n_160908.html
 http://www.rics.org/newregulation/memhelp.html

Michael J Mooring
Dating back to 1895, the Society of Chartered Surveyors Ireland is the independent professional
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