Principles
The principles in the AICPA highlight the profession's responsibilities to their clients, the public, and colleagues. The responsibilities principle acknowledges that the certified public accountants play a crucial role in society, and they are obligated to meet the needs of all the people requiring their professional services. It emphasizes on members' cooperation to sustain the public's confidence, improving the accounting process, and attending to the role of the self-governance. The principle of responsibilities seeks to maintain and enhance the professions' traditions.
The public interest principle guides the certified public accountants in handling conflicting pressures from the public. According to AICPA (2013), resolving conflicts among groups, the certified public accountants ought to act with integrity, understanding that if they attend to their responsibility to the clients, the public and employers' interests are best served. This principle directs the actions of the members to ensure they understand their obligation lies with the public, serving their interest, honoring their trust, and demonstrating commitments to the profession.
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The integrity principle requires the members to exercise confidentiality on matters relating to their clients and remain honest. It requires people to maintain public trust and perform their services diligently without subordinating these responsibilities for their gains. Therefore, the integrity principle sensitizes the members to act in a manner that maintains and broadens the public confidence towards them.
The objectivity and the independence principle offers directions on the best approaches when serving multiple interests. According to AICPA (2013), the objectivity principle obligates one to intellectual honesty, impartiality, and acting freely from conflicts of interest. The independence element precludes the relations that are likely to hinder their objectivity during the attestation services. Therefore, the objectivity and independence principle ensures the members avoid any conflicts of interest and the subordination of their judgment.
The due care principle requires members to perform their professional responsibilities with diligence and competence. AICPA (2013) affirms that the due care principle obligates certified public accountants to perform their roles with dedication to the best interest of the clients while meeting the profession's responsibility to the public. This principle emphasizes members' responsibility in continued learning for improvements and maintenance of competence necessary in the profession.
Scope and Nature of services principle encourages the consideration of all the other principles when deciding whether to provide certain services in particular circumstances. To meet the principles certified public accountants ought to apply their judgments to ascertain whether they are performing their professional roles or creating conflicts of interest.
Public Companies
A code of conduct defines how firms' employees should act daily. JPMorgan's code of conduct is the shared commitment, which requires all its members to have a high level of integrity (JPMorgan Chase & Co., 2020). Their code principles focus on protecting their heritage in which everyone needs to comply and communicate in areas of a violation. They emphasize on ethical business practices towards their customers and in the marketplace. The company obligates everyone in protecting each other and embracing diversity. It also emphasizes the need to protect the company's technological and physical assets. It encourages their members to be good community members and neighbors by being vigilant of their actions' in the environment. More so, they emphasize on the need to be compliant with the law in all charitable contributions.
The Bank of America code of conduct key themes relates to honoring their heritage by making responsible decisions. The code emphasizes that the employees should act ethically without any conflict of interest and ensuring they do not accept bribes (Bank of America, 2020). The company safeguards employee, customer, and third-party information. It also focuses on growing responsibly, that is by protecting human rights, social and environmental rights. It emphasizes diversity and inclusion while encouraging compliance with rules and regulations. More so, the company code emphasizes the need to protect the bank without misusing any information.
The Wells Fargo company code of conduct outlines the principles and other directives to help their employees make decisions that comply with rules, laws, and regulations governing their business. The company keeps confidential information concerning its customers, third-party service providers, and team members, to maintain trust (Wells Fargo, n.d.). The company code states that the company is transparent and candid, thus requiring all its employees to maintain accurate and complete records. The company employees are required to act with honesty and integrity avoiding conflicts of interest (Wells Fargo, n.d). The company is concerned with honoring its legal obligations, such that it emphasizes the anti-corruption and anti-bribery acts. The company seeks to support their communities, respecting human rights, and the environment.
Connections in the Principles
JPMorgan Chase & Co., Bank of America, and Wells Fargo have a strong ethical culture that guides their employee operations. The three companies emphasize on the need for diversity and inclusion. They seek to protect their companies' assets, which they pose as a requirement for all their employees (JPMorgan Chase & Co., 2020). Ethical business practices are encouraged in which employees ought to adhere to rules and regulations that are set. Communities are highlighted in the three companies, in which they emphasize their employees' need to act responsibly, complying with the developed rules of the environment. People are encouraged to act ethically, avoiding conflicts of interest at all times. Additionally, the three banks value their heritage, which they maintain by ensuring trust and keeping clients’ confidential information secure. More so, they encourage their employees to ask for help when in doubt to avoid making mistakes.
AICPA Principles and the Companies’ Codes
The principle of responsibilities is emphasized in the three banks, as evident in the inclusion and diversity element as a way of cooperating to achieve the company goals. More so, the responsibility principle is captured in the emphasis on meeting clients' needs. Public interest principle is accounted for in the banks, whereby they emphasize the need to act ethically and consistent with the acceptable professional behavior of certified public accountants. The three companies on the integrity principle are trustworthy, comply with the laws as well as ensure they meet client's confidentiality.
Objectivity and independence principle is evident in the three companies, whereby they all emphasize acting freely without conflicts of interest. Due care principle relates to the companies’ idea of acting ethically by avoiding the conflicts of interest to ensure they provide high-quality services to their clients. The scope and nature services principle, which emphasizes observing the principles of CPC to determine the nature and scope of services to be offered is encouraged in the banks, such that in cases where the employees are not sure of the requirements, they can ask for professional help.
Recommendations
As a way of improving the financial gains in our company, diversity and inclusion are elements to be included as they help to achieve the company's responsibilities better. The company should also aim to serve a great purpose in society by supporting the communities and respecting human rights, which are also their responsibilities. Honoring legal obligations is necessary, which can be achieved through the anti-corruption and anti-bribery codes. The company needs to develop transparency by maintaining complete and accurate records. Developing trust in the clients is necessary, which is achievable through keeping the confidential information secure. Objectivity is necessary, which is achievable through clearly defining the company rules. More so, keeping correct and accurate records will help to develop trust in the customers, which is necessary for a long-term relationship with them.
References
AICPA. (2013). Code of Professional Conduct and Bylaws . New York. Retrieved from https://www.aicpa.org/content/dam/aicpa/research/standards/codeofconduct/downloadabledocuments/2013june1codeofprofessionalconduct.pdf
Bank of America. (2020). 2020 Code of Conduct . Retrieved 17 November 2020, from http://investor.bankofamerica.com/static-files/a359ed51-ef9b-4746-be90-bfbc892b3b02
JPMorgan Chase & Co. (2020). Code of Conduct 2020 [Ebook] (pp. 1-46). Retrieved from https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/documents/code-of-conduct.pdf
Wells Fargo. Our Code of Ethics & Business Conduct [Ebook]. Retrieved from https://www.sec.gov/Archives/edgar/data/72971/000119312516482046/d149067dex9911.pdf
