Christmas parties provide an opportunity to have fun and strengthen relationships with colleagues, but they can also create circumstances where professional conduct may be forgotten. It’s essential to be mindful of your behaviour and adhere to ICAEW’s Code of Ethics to avoid any actions that could later result in a complaint being filed against you.
Under ICAEW’s Disciplinary Bye-laws, members and firms are liable to disciplinary action if they commit an act likely to bring discredit on themselves, ICAEW or the accountancy profession, or if they fall significantly short of the standards reasonably expected.
ICAEW’s Code of Ethics requires members to comply with the principle of professional behaviour, which means they mustn’t act in a way that discredits or undermines the reputation of the profession. Earlier this year, ICAEW consulted on proposed changes to the principle of professional behaviour, and the new approved wording will be introduced early next year, as follows:
Current wording
115.1 A2 The concept of professional behaviour implies that it is appropriate for professional accountants to conduct themselves with courtesy and consideration towards all with whom they come into contact when performing their work.
Proposed new wording
115.1 A2 The concept of professional behaviour implies that professional accountants should act in accordance with the standards that society expects in all professional and business relationships. For example, professional accountants should treat others fairly, and with respect, and not harass, bully, or unfairly discriminate against them.
Based on both the Disciplinary Bye-laws and the Code of Ethics, ICAEW will investigate any behaviour of an ICAEW member if it is likely to bring discredit upon that individual, ICAEW or the profession as a whole, wherever it takes place. The public places professionals in a position of trust, and therefore they are required to behave in a way which maintains that trust.
“No one wants to stop members enjoying themselves, celebrating their achievements or having fun,” stresses Sarah Brook, Director, Investigations, in ICAEW’s Professional Standards Department.
“However, as we are seeing a rise in cases of inappropriate behaviour being referred to us, including at these kinds of workplace events, we are keen to amplify the message that behaviour counts whether you are at your desk or elsewhere” she adds. Examples of behaviours reported to ICAEW range from unwanted attention to verbal and physical abuse, and even sexual misconduct or harassment.
What can firms do?
Most firms are aware of the risks of these misconduct issues and the impact on their employees’ wellbeing, as well as the risk of reputational damage if they don’t deal with any misbehaviour appropriately.
Many firms carry out a simple risk assessment for these kinds of events to ensure things go smoothly, safely and without incident.
Firms may consider warning staff that although parties may be happening outside working hours or the working environment, this doesn’t mean that they leave their obligations as an ICAEW member at the office door.
Potential misbehaviour
During a work-related event, staff are still subject to their obligations as an ICAEW member. Behaviour they may want to be mindful of includes taking part in potentially offensive ‘banter’, using inappropriate language, making any unwelcome advances, or becoming verbally or physically abusive.
One of the issues ICAEW will consider in deciding whether a complaint requires investigation is, of course, the conduct itself, but other factors may also play a part.
“We also look at the nature of the professional relationship between the individuals involved,” says Sarah. “Depending on the nature of the complaint, as a regulator, we may have deeper concerns if an individual has used their senior position in order to initiate an improper encounter with a junior member of staff.”
Duty to report
ICAEW members, firms, affiliates or relevant persons are under an obligation to report matters to our Conduct Department where they have a reasonable belief that another ICAEW member, firm, affiliate or relevant person, may be liable to disciplinary action.
“If you see something happening that may render someone liable to disciplinary action, you do have an obligation to report it to ICAEW under the Duty to Report Misconduct,” explains Sarah. “We have provided specific guidance, which includes examples of behaviour that warrants being referred to us.”
Anyone can submit a complaint, whether that be firms, victims or witnesses to the misconduct. Sarah continues: “Every complaint received against those we regulate is assessed. If we are concerned that ICAEW standards, guidance or regulations have been breached, and there is evidence to support this, the case is passed into investigation. If the evidence suggests there is a case to answer, we will refer the matter to the independent Conduct Committee.”
Supporting victims and witnesses
ICAEW understands that being involved in a conduct case can be distressing. To support victims and witnesses, ICAEW has published guidance on how we assist witnesses through our process.
“The guide sets out what people can expect and lists potential measures that can be put in place to help” Sarah explains. “If we have a tribunal witness who is deemed to be vulnerable, they could give their evidence from behind a screen, or if it's done virtually, they could give evidence off camera. We recognise that giving evidence in some circumstances can be daunting, and we want to make the whole process more supportive for people so that they can give their best account of what happened.”
Protecting the profession
Professional behaviour is a core requirement for ICAEW members and hence it is vital for ICAEW as the regulator to uphold the standards expected of our members and regulated firms. So, even if individuals think they can relax because they are out of their usual work environment, it is still important to maintain professional standards.
We are reminding firms of the need to familiarise themselves with the Code of Ethics, check ICAEW’s guidance on the Duty to Report Misconduct, and make sure they have up-to-date and robust policies about what is acceptable behaviour.
From an individual perspective, members should fully understand the obligations they’re under, know what policies they’re expected to comply with, take responsibility for their own actions and behaviours, and call out unprofessional behaviour if they come across it.
