“Ethics and Trust in the Investment Profession” is a reading included in the Level I curriculum for the CFA(R) Program.
The Need for High Ethical Standards in Investment Management
Not everyone engaged in investment management is a professional – they have not undergone specific training or become members of a professional body.
How Professions Establish Trust
There are several ways professions go about building trust among their customers and society at large.
The Role of a Code of Ethics in Defining a Profession
A profession is a vocation that requires specialized education and training. Professional communities reinforce best practices among their participants and often create codes of ethics to codify certain behaviors as either required or forbidden. These codes of ethics act as a general guideline for how professionals should act. In many cases, the codes are expanded…
Ethics are a set of moral principles that can be used to judge a person’s actions and behavior. Ethics represent the values considered admirable in a society. They help distinguish good (or even obligatory) behavior from bad behavior. Ethical behavior balances self-interest with the direct and indirect consequences of that behavior on others. Ethical principles…