Code of Business Ethics
We use the phrase ‘Business Ethics’ in a lot of different ways. It varies, depending on how one conceives of the object under discussion. A code of ethics is about corporate culture, which can help a business determine its priorities and values.

Importance of Business Ethics

It is a collection of principles and practices, which a company believes in and aims to live by. A code of Business Ethics usually doesn’t stand alone, it also works in conjunction with a company’s Mission Statement. It also gives its employees, partners, vendors, and outsiders an idea of what the company stands for. The HR of the company should educate incoming employees about the code of ethics and the company’s culture, which is very important in this age of increasingly rapid job turnover. Having said that, those who practice proper Business Ethics will say that the codes will carry more weight if they’re visible, frequently discussed and updated often.

In other words, ethics in business is simply the application of everyday morals, values which we used in our day-today lives. “Ten Commandments” from the Bible is a good example, a guide that is still used by many today. To pick few, we should strive for truthfulness and honesty or prohibit ourselves against theft and envy that are directly appropriate in our business.

 The Code

Following are some of the Code of Business Ethics and Standards of Professional Conduct, which should be practiced in a Stock Trading Firm:

  • Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
  • Place the integrity of the investment profession and the interest of clients above their own personal interests
  • Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession
  • Require training on ethical decision-making for yourself and your firm
  • Act with integrity 24/7 – not just at the office
  • Always be honest with clients. Have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment
  • Recommend products with transparent payoffs, costs, and risks
  • Help clients focus on risk as much as they do on performance
  • Strive for a conflict-free business model
  • Advocate for stronger regulations that protect investors
  • Encourage young professionals to have the courage to disagree
  • Keep client fees fair
  • Be transparent with clients when something goes wrong
  • Actively disclose all compensation arrangements to clients
  • Lead by example with your firm and colleagues
  • Write articles and speak publicly about ethics
  • Act with fairness and prudence with every decision
  • Present analysis based on facts and client needs
  • Never engage in misleading sales promotions
  • Must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants
  • Vocally demand that your firm does what is right for clients
  • Outline exactly how you are managing a client’s funds
  • Disseminate transparent, accurate and timely information
  • Elevate the importance of integrity in the hiring process
  • Maintain regular contact with clients
  • Openly share bad news with all who are affected
  • Listen to clients’ concerns and fears
  • Promote the concept of earning money rather than making money
  • Remind junior associates that reputations are hard earned and easily lost
  • Take responsibility for the actions of your team
  • Create an ethical work culture that allows constructive criticism
  • Advocate for technology that makes the industry more transparent
Elvis D'Souza

Elvis D'Souza

Elvis is responsible for managing the entire backoffice operation at RKSV. Elvis enjoys movies, partying, and listening to music. He is a self proclaimed biggest Aamir Khan fan on the planet.