Ethics refers to a high moral system of principles, rules, and standards based on conduct and values. The ethical system of a profession establishes guidelines that reach to the higher principles of what is “right.” Those principles may form the law, but they exist apart from the law. Professional ethics in business usually focus on two main aspects of the profession:
Code of Ethics
One way that many organizations address ethics among their members or in their respective businesses is by adopting specific, written codes of ethical conduct. A code of ethics is a written system of standards for professional, values-based conduct. The code contains statements designed to advise, guide, and regulate job behavior. To be effective, a code of ethics must be specific by creating rules that either prohibit or encourage certain behaviors. By including sanctions for violators, a code of ethics becomes more effective.
The National Association of REALTORS® (NAR), the largest trade association in the country with over one million members, adopted a code of ethics for its members in 1913. REALTORS® are expected to subscribe to this strict code of conduct. Not all licensees are REALTORS® only those who are members of NAR. NAR has established procedures for professional standards committees at the local, state, and national levels of the organization to administer compliance. Practical applications of the articles of the code are known as Standards of Practice.
