Understanding Ethics in Investment Professionals

Ethics is a set of shared beliefs about what is good or acceptable behavior and what is bad or unacceptable behavior (correct)

Ethics is a set of societal expectations

Ethics refers to acceptable behavior only

Ethics is a set of personal beliefs

Behavior that aligns with societal expectations (correct)

Conduct that brings positive results for the individual regardless of impact on others

Behavior that benefits only the individual

Conduct that disregards moral principles

Only coworkers

Clients, employers, and society at large (correct)

The individual investment professional only

Only clients

<p>Balancing self-interest with the impact on others</p> Signup and view all the answers

<p>Ethics = Set of shared beliefs about good or bad behavior Ethical conduct = Behavior consistent with moral principles and societal expectations Stakeholders = People directly or indirectly affected by conduct Positive results for you, negative consequences for a stakeholder = Example of ethical dilemma</p> Signup and view all the answers

<p>Balanced behavior = Behavior that considers both self-interest and impact on others Improving outcomes for stakeholders = Goal of ethical conduct Consistent with society’s ethical expectations = Aspect of ethical conduct Directly or indirectly affected by the conduct = Stakeholder definition</p> Signup and view all the answers

<p>Clients, coworkers, employers, and the investment profession = Examples of stakeholders for investment professionals Coworker affected by a decision = Example of a stakeholder impacted negatively by a decision People affected by behavior = Definition of stakeholders Behavior that follows moral principles = Aspect of ethical conduct</p> Signup and view all the answers

<p>Good or acceptable behavior vs. bad or unacceptable behavior = Description of ethics Behavior that balances self-interest with impact on others = Definition of balanced behavior Set of shared beliefs about what is good or bad behavior = Ethics definition Behavior that improves outcomes for people affected by the conduct = Definition of improving outcomes for stakeholders</p> Signup and view all the answers