Importance of values to individual

You must be aware of just what are you Core Values - those beliefs you hold which require no justification other than they are right and central to your life. Knowing them allows you to hold them consciously in place while you live you life and make your daily decisions.

Importance of values to society

Values influence all society's actions.

"me generation" - focusing on the individual as more important than the group, it is during Information Age, supported by "ethical relativism". Ethical relativism states there is no such thing as a universal moral principle to govern our behavior. Everything is relative, situational, negotiable and up for grabs by whoever wishes to define what the values are for particular occasion. (It is misunderstanding way of thinking)

BASIC ETHICS TENETS

1. Duty of Care and Concern for Others

There is a difference between ethics of compliance-based system (relying on rules and mandates) and ethics of integrity-based system (relying on self-responsibility and accountability). Associated with Fairness. The test of fairness is whether actions, and the reasons behind actions are seen to be fair by others.

2. Respect for Confidentiality

3. Fidelity to Special Responsibilities

   • Avoiding Misrepresentation

   • Objective Research (say one to client, but think different way)

   • Avoidance of conflicts of interest

4. Compliance With Laws and Regulatory Requirements

Laws and regulations provide a base for individual and corporate behavior. Provincial and federal laws are more stringent than professional or corporate codes of ethics. Compliance need not be restricted to motives of fear of punishment and respect for authority. Regulation must strike a balance between nurturing the mechanisms that facilitate the flow of capital and protecting the interests of investors who provide capital. Full disclosure and marketplace provide it.

5. Acting in Good Faith

Respecting oneself honestly; Being prudent with other people's money; giving impartial advice; disclosing conflicts of interest; respecting property and legal rights; practicing basic business courtesy.

6. Respect for Individual Well-Being

7. Respect for Others' Rights

IA are expected to deal fairly and equally with all clients, not favoring some clients over others.

The importance of ethics

WHAT VALUES AND ETHICAL PRACTIVE DO IN AN ORGANIZATION

Ethics Advance Shared Ideas

Shared Ideas in securities industry include:

1) A broker should always hold his/her client’s interests above his/her own (i.e., fiduciary duty).

2) Self-regulation of the profession is a privilege.

3) Guidance and monitoring of employees’ behavior is worthwhile.

4) Individuals should behave in a manner that maintains the reputation of self, the firm, and the industry.

5) The primary objectives of firms are service, profits, jobs and growth.

6) Limits are appropriate on the acceptance of gratuities and gifts that could be seen to

influence judgment (i.e., conflict of interest).

7) Practitioners need to maintain high standards of professional competence.

8) The capital markets, if they want to operate in the public interest, should have significant public representation in their governance processes.

Share values are considered to be essential in developing a commitment to proper organizational control. These values basis of corporate mission, investment policy and management's vision

Ethics Link Mission, Values and Policies

Values is a glue between Corporate Mission; Mandate and Investment policy on one side and operational policies and procedures on the other.

Values clarification can help generate consistency between the values lived out by Board and management, and those that appear in approved corporate policies.

Important lessons from understanding this two-way relationship:

1) From top to bottom, values need to be clarified so that they can contribute to the formation of operational procedures. From bottom to top, policies and procedures can be used to clarify the need for rethinking or updating the firm’s mission, mandate and investment strategy.

2) Clarifying ethics can only take place in relation to underlying values both within the

industry and within the firm.

3) Ethical awareness must play a critical role in formulating, testing and updating policies and procedures.

4) Shared values are vital to the development of a commitment to proper organizational

control.

5) Alignment of practices with a firm’s mission only can be made if employees’ values are taken into account.

Ethics Honor Individual and Corporate Obligations

Managing with integrity - weight the pros and cons of all actions, examine reasons of support and make decision which is right, legal, professional and moral

Executives transform ethical concepts into operating practices, policies and norms to satisfy full range of obligations such as: Respect for the rights of individuals; Fair competition; Maximization of overall benefit; Reward ethical performance.