Having a strong compliance program is not the end of a firm’s obligation to itself and its customers. All firms should also make sure that it has a strong ethics program.
An ethics program should include, among other things, the following:
- A written code of conduct;
- Having an ethical tone at the top of the firm;
- Provide employees with an anonymous reporting mechanism;
- All training should incorporate ethics;
- Develop mechanisms to measure ethical behavior; and
- Reporting of ethical issues up the chain.
One of the most important things is to set an ethical tone at the top of the organization down. A firm cannot expect its employees to act in an ethical manner if firm leadership does not. In other words, firm management must lead by example.
Firm leadership can make ethics part of the fabric of the firm by including ethics in all forms of training. By doing so, you can create awareness and buy-in to a culture of ethics.
What is your firm doing to make sure its team acts in an ethical manner? If you don’t know, it is likely that you do not have an ethics program in place.
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