I have recently submerged myself in the wording of various ethical codes and the recent changes that have been made. Indeed, agreeing to co-author our new Ethics Update course, has turned me into a bit of an ethics nerd!
It was therefore fascinating yesterday, to attend an ICAEW training day and hear them explaining candidly the process involved in a small but significant change in the wording of one clause in the ICAEW Code of Ethics.
In the 2020 Code, subsection 115 Professional Behaviour contains the following explanatory clause 115.1 A2:
"The concept of professional behaviour implies that it is appropriate for professional accountants to conduct themselves with courtesy and consideration towards all with whom they come into contact when performing their work.”
Feedback had suggested that the wording was problematic in two ways:
- It was not clear what "courtesy and consideration” meant.
- It was not clear what was meant by "when performing their work”.
The second of these is particularly interesting. ICAEW gave three examples.
Firstly, what about social events? Is the Christmas Party a work event? You might think it is. What about if a few people decide to go on from the Christmas Party to a pub round the corner and have a drink there. If there are still only work colleagues present, is that a work event?
What about work trips abroad? Time spent doing the work at a client’s site would be a "performing their work”, but what about time at the hotel that you and your colleagues are all staying at?
Then there is social media. Often lumped together, social media is a term that covers many vehicles. LinkedIn is surely a place where it is obvious you are an accountant, and you should behave as such. Twitter may be the same if you have a work account or have a username that identifies you as an accountant. Facebook possibly less so.
The ambiguity here may seem pedantic, but it is important because any lack of clarity allows a clever lawyer to construct a defence in a disciplinary hearing.
During various iterations of wording, other phrases received push back. "The standard that society expects” was one. Which parts of society? Some parts of society think that it is acceptable to evade paying your taxes. The phrase they went for in the end was "Reasonable and informed third parties…”
Another phrase that was floated and then revised, was "professional business relationships”. On this one they ended up switching to "professional life”.
Separately, there was feedback on whether the wording should include examples, with people voicing strong opinions on both sides. As you will see below, some examples did end up being included….
So, the final wording for inclusion in the Code from Q1 of 2025, is (drum roll):
"A reasonable and informed third party would expect that a professional accountant, in their professional life, treats others fairly, with respect and dignity and for example does not bully, harass, victimise or unfairly discriminate against others.”
Of course I have now somewhat spoiled that for you, because you can now see all the moving parts that make up this jigsaw of a clause. Some considerable credit is merited for still ending up with a statement that reads well is and is easy to understand!
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