Ethics Flashcards
(40 cards)
Please explain your understanding of the term conflict of interest?
A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary decline work opportunities where a conflict of interest occurs.
How could the conflict of interest be managed internally if two separate departments were working for the same client?
This could be manged by putting the following measures in place:-
Ensuring exclusivity of staff to each department.
Ensure separate communication lines are reporting back into the client.
Separate the geographical locations of each department.
Sign team members up to non disclosure agreements.
Monitor the potential conflict and keep the client updated.
If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?
I would firstly check the clients understanding around the conflict of interest to ensure they understood the implications regarding the potential risk for reduced impartiality. A letter of instruction to continue would be required from the client. I would then discuss the working procedures to manage the conflict of interest and agree this formally in writing with the client.
Please explain your understanding of the Main Principles of the Bribery Act?
Offences under the Bribery Act Include:-
Making a bribe.
Receiving a bribe.
Bribery of a foreign public official.
It applies to all UK Entities and includes associated persons.
What are the the six principles of prevention firms must ensure they can demonstrate?
- Proportionate Procedures
- Top Level Commitment.
- Risk Assessments.
4 Due Diligence.
5 Communication.
6 Monitoring & Review.
Under the Bribery Act, under what circumstance is a facilitation payment permitted?
The only circumstance in which it is OK to make a facilitation payment is when you are under duress where there is a real and present risk or danger to “life, limb or liberty”. If you or your companions are under immediate physical threat you should put safety first, make the payment and report the matter immediately or as soon as is practicable to your manager or your ethics compliance contact.
You are attending a Main Contractor organised business conference where it is announced that you have been randomly selected as the winner of this months prize draw. It is an I-pad air of significant value. How would you act in this scenario?
I would be extremely uncomfortable accepting the prize in this scenario. The prize is of a significant value and could be interpreted as a bribe. Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project. I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice. I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report this to my line manager.
You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?
In the first instance I would declare this hospitality on my companies gifts and hospitality register. Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out at the last minute as this would no longer be classed as a genuine business event.
A client takes you out for lunch after a business meeting, where they continue to discuss business. The bill for the lunch comes to £200. What should you do now?
This lunch had a legitimate business purpose, so it’s fine to accept the hospitality however the client should have considered how a £200 bill for lunch could be perceived and have chosen a more modest restaurant. Given the size of the bill, it must be declared on the hospitality register and I would make my line manager aware immediately afterwards. I would offer to reciprocate but ensure this is carried out in a more modest manner as the lavishness of the restaurant could be interpreted as inappropriate and disproportionate.
Assuming you were successful in getting chartered, how would you deal with a situation such as a friend who asks you to provide them with QS advice?
I could not offer advice on my own without PI insurance being in place. If I did have my own PI cover I would ensure that the information and advice provided was offered at the same level and subject to thorough checking processes as is the case under a regular client appointment regardless of this being for a friend. If I am not comfortable acting for them, I would advise them to use the RICS ‘find a surveyor scheme’.
A housebuilder invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?
Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act. If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate. However if the contractor is persistent and there is a red flag in that he wants to discuss things that he cannot put in writing, I would report this infringement.
Please explain your understanding of Rule Number 1?
Having reviewed the example behaviours in adhering to Rule 1, RICS Members and firms should not allow themselves to be influenced improperly through the acceptance of work referrals, gifts or hospitality. Members and Firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur. This could be a scenario where you have reduced impartiality due to an existing relationship, for example being friends with a Main Contractor who has subsequently been selected to submit a tender would form a conflict of interest.
Please explain your understanding of the professional obligations of members?
The professional obligations of members include:-
- Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the professional obligations of firms?
The professional obligations of firms include:-
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
What are the main forms of Alternative Dispute Resolution?
There are several forms of Alternative Dispute Resolution (ADR), including:-
Mediation – This process involves a neutral third party who facilitates discussions between the disputing parties to help them reach a mutually acceptable agreement. The mediator does not impose a decision but instead guides the parties toward a resolution.
Conciliation – Similar to mediation, conciliation involves an independent third party who assists in resolving the dispute by encouraging dialogue and offering suggestions. However, unlike a mediator, a conciliator may take a more active role in proposing solutions.
Negotiation – This is an informal and voluntary method where the parties involved communicate directly with each other to resolve their dispute. Negotiation can be done privately or with the assistance of legal representatives and the outcome depends on mutual agreement.
What are the main formal methods of dispute resolution?
Arbitration – This is a private dispute resolution process where an independent arbitrator makes a binding decision based on the evidence and arguments presented by both parties. Arbitration is often used in commercial contracts as an alternative to court proceedings.
Litigation – This is the process of resolving disputes through the court system. It involves legal proceedings before a judge (and sometimes a jury), where each party presents its case and a legally binding judgment is issued. Litigation follows formal procedures and can be costly and time consuming.
Adjudication – This is a statutory dispute resolution process, particularly relevant to the construction industry. An independent adjudicator is appointed to review the claims of both parties and make a binding decision within a short timeframe, typically 28 days.
What factors should be considered before selecting a form of dispute resolution?
Before deciding on a method of dispute resolution, several important factors should be considered including:-
The cost involved – The expense of resolving a dispute should be proportionate to the value of the claim. Some methods such as litigation, can be significantly more expensive than alternative options like mediation or adjudication.
Time constraints – The timeframe in which a resolution is required may influence the choice of dispute resolution method. For instance, adjudication provides a decision within 28 days, whereas litigation can take months or even years.
Impact on business relationships and reputation
– The approach taken to resolve a dispute can affect ongoing business relationships. Mediation and negotiation are more collaborative methods that encourage cooperation, whereas litigation and arbitration can be adversarial and potentially damage relationships.
What is conciliation?
Conciliation is a dispute resolution process that is similar to mediation and involves an independent third party who facilitates communication between the disputing parties to help them reach an agreement. The role of the conciliator is primarily to encourage dialogue and diplomacy, but they do not have the authority to seek evidence, call witnesses or impose a binding decision. Instead, they act as a messenger, relaying information between the parties to assist in finding a resolution.
What is mediation?
Mediation is an alternative dispute resolution process in which a neutral and impartial third party, known as a mediator, facilitates discussions between the disputing parties. The mediator’s role is to encourage open communication, assist in identifying areas of agreement, and guide the parties toward a mutually acceptable solution. Unlike conciliation, mediation places a stronger emphasis on active engagement, as the mediator does more than just relay messages—they work to bring the parties together to reach a resolution. Mediation is often preferred because it promotes cooperation and preserves business relationships.
What is dispute resolution?
Dispute resolution refers to the various methods and processes used to resolve disagreements between parties, particularly in contractual or legal disputes. These methods can range from informal negotiations to formal legal proceedings, with the goal of finding a fair and effective solution to the dispute.
What is negotiation?
Negotiation is a process in which two or more parties communicate directly, either privately or with the assistance of representatives, to reach a mutually acceptable resolution. It is an informal method of dispute resolution that allows the parties to discuss their concerns, make concessions where necessary and agree on a settlement. Once an agreement is reached, both parties are typically bound by the terms they have negotiated.
What is your most successful negotiation?
Extension of time on a planning app
What could indicate the success of a negotiation on a final account?
Satisfaction of both parties – A successful negotiation results in both parties feeling that a fair and reasonable compromise has been achieved. Neither side should feel as though they have been unfairly disadvantaged.
Preservation of business relationships – A positive negotiation outcome ensures that both parties maintain a professional and cooperative relationship, allowing for future collaboration.
A partnering approach – If both parties adopt a long-term, cooperative mindset and focus on mutual benefit rather than short-term gain, this can indicate a successful negotiation.
What is adjudication?
Adjudication is a statutory dispute resolution process commonly used in the construction industry within the United Kingdom. It is designed to provide a quick and cost-effective means of resolving disputes without the need for lengthy court proceedings. In adjudication, an independent adjudicator is appointed to assess the claims of both parties and issue a binding decision. Although the decision is legally binding, it can be challenged through arbitration or litigation. One of the key advantages of adjudication is its efficiency as decisions are typically made within 28 days.
