Dialog - Internal

WHAT IS ETHICS??

Ethics refers to the branch of philosophy that deals with moral principles, values, and
the concept of right and wrong behavior

Ethics provides a framework for individuals and societies to make ethical judgments and
decisions, taking into account factors such as fairness, justice, responsibility, and the
well-being of individuals and communities.

Dialog - Internal
WHAT IS ETHICS??
Moral Principles: Ethics is concerned with identifying and understanding the fundamental moral principles that guide human behavior, such as honesty, integrity, respect for others,
and fairness.

Moral Values: Ethics explores the values that individuals and societies hold dear, including values related to human rights, social justice, and the common good.

Moral Reasoning: Ethical reasoning involves the process of evaluating and making judgments about the rightness or wrongness of actions and decisions in various situations.

Ethical Theories: Ethical theories provide different frameworks for approaching ethical questions. Examples include utilitarianism, deontology, virtue ethics, and ethical relativism.

Application: Ethics is applied to a wide range of areas, including business ethics, medical ethics, environmental ethics, and professional ethics. It helps individuals and organizations
make ethically sound choices in their respective domains.

Ethical Dilemmas: Ethical dilemmas are situations where conflicting moral principles or values make it challenging to determine the right course of action. Ethics provides tools for
resolving such dilemmas.

Ethical Conduct: Ethics encourages individuals to act in accordance with moral principles and values, even when faced with temptations or pressures to behave unethically.

Social and Cultural Context: Ethical norms can vary across cultures and societies, and ethical discussions often take into account these cultural and contextual differences.

Dialog - Internal
WHAT IS BUSINESS ETHICS??

the rules,
principles,
and standards of deciding what is morally right or wrong that guide our behavior and
decision making of individuals and organizations

Dialog - Internal
WHY BUSINESS ETHICS FOR VALUATION
Integrity and Trust: Valuation professionals are responsible for determining the value of assets, businesses, or properties. If they lack integrity and ethics, their valuations can be biased
or inaccurate, leading to mistrust within the industry. Ethical conduct helps maintain trust in the valuation process.

Objectivity: Valuation should be conducted objectively and impartially. Ethical guidelines ensure that valuers avoid conflicts of interest, maintain independence, and provide fair and
unbiased assessments of value.

Accuracy and Reliability: Ethical valuers are committed to providing accurate and reliable valuations based on sound methodologies and data. This commitment is essential to the
integrity of the valuation profession.

Transparency: Ethical valuers are transparent about their methodologies, assumptions, and data sources. This transparency builds trust with clients and stakeholders who rely on
valuation reports to make important financial decisions.

Confidentiality: Valuation often involves sensitive financial information. Ethical valuers protect the confidentiality of this information, ensuring that it is not misused or disclosed without
proper authorization.

Legal and Regulatory Compliance: Ethical valuers adhere to relevant laws and regulations governing their profession. Violating ethical standards can lead to legal and regulatory
consequences.

Stakeholder Interests: Valuation impacts various stakeholders, including investors, lenders, buyers, and sellers. Ethical valuers prioritize the interests of these stakeholders and aim to
provide valuations that serve their needs fairly.

Avoiding Fraud and Misrepresentation: Unethical valuation practices can lead to fraud or misrepresentation, which can have severe legal and financial consequences. Ethical valuers help
prevent such issues by maintaining high standards of honesty and accuracy.

Long-Term Reputation: Ethical behavior in valuation contributes to the valuer's long-term reputation and credibility. Valuation professionals with strong ethical standards are more likely
to build lasting relationships with clients and gain repeat business.

Market Confidence: A reputation for ethical behavior within the valuation profession enhances market confidence. When businesses and individuals trust the valuation process, they are
more likely to engage in investment and financial transactions.
Dialog
In summary, business ethics are essential for valuation because they uphold the integrity, - Internal and credibility of the valuation process. Ethical valuation practices help ensure that
reliability,
WHAT IS PROFESSIONAL ETHICS??

the rules,
principles,
and standards of deciding what is morally right or wrong that guide our behavior and
decision making of individuals and organizations

Dialog - Internal
WHY PROFESSIONAL ETHICS FOR VALUATION
Confidence and Trust: Valuation professionals are entrusted with determining the value of assets, properties, or businesses. To maintain trust in the
valuation process, clients and stakeholders need assurance that valuations are conducted impartially, honestly, and ethically.

Objective and Unbiased Assessments: Ethical valuers prioritize objectivity and avoid conflicts of interest that could compromise their judgment. This
ensures that valuations are based on sound methodologies and data, rather than personal or financial interests.

Protecting Clients and Investors: Valuation often plays a crucial role in financial decision-making, such as investment, financing, mergers, and acquisitions.
Ethical valuations protect clients and investors from making ill-informed decisions based on inaccurate or biased information.

Maintaining Professional Standards: Ethical standards within the valuation profession help ensure that all practitioners adhere to a common set of
principles and guidelines. This consistency promotes professionalism and the quality of valuations across the industry.

Legal and Regulatory Compliance: Ethical valuers adhere to relevant laws and regulations governing their profession, reducing the risk of legal and
regulatory violations.

Preventing Fraud and Misrepresentation: Unethical valuation practices can lead to fraud, misrepresentation, and financial harm. Ethical valuers help
prevent such issues by maintaining high standards of honesty and accuracy.

Market Confidence: A reputation for ethical behavior within the valuation profession enhances market confidence. When businesses and individuals trust
the valuation process, they are more likely to engage in investment and financial transactions.

Client Relationships: Ethical behavior in valuation fosters positive client relationships built on trust, transparency, and confidence in the valuer's integrity.

Long-Term Reputation: Valuation professionals with strong ethical standards are more likely to build lasting reputations in the industry, attracting repeat
business and referrals.
Dialog - Internal
WHY PROFESSIONAL ETHICS FOR VALUATION

Industry Credibility: An industry known for its ethical practices is more likely to be recognized and
respected by other stakeholders, including regulators, government bodies, and the public.

Ethical Dilemmas: Valuation professionals often encounter ethical dilemmas when dealing with complex
valuation assignments. Ethical guidelines provide a framework for navigating these dilemmas and making
ethical choices.

Fulfilling Fiduciary Duties: In cases where valuation professionals act as fiduciaries or advisors, ethical
conduct ensures that they prioritize their clients' interests over their own.

Dialog - Internal
WHAT IS RICS?

RICS stands for the Royal Institution of Chartered Surveyors. It is a professional body that represents and
regulates professionals in the land, property, construction, and infrastructure sectors worldwide. RICS is
based in the United Kingdom but has a global presence and membership.

How it links with Valuation? Why we need to abid?

RICS sets and enforces professional standards and codes of conduct for its members to ensure high ethical and
professional standards in the industries they serve. They also provide education and training for individuals
pursuing careers in these sectors and offer various professional qualifications, including the MRICS (Member of
the Royal Institution of Chartered Surveyors) designation, which is highly respected in the industry.

The Rules of Conduct support positive change in the built and natural environments, through
promoting and enforcing the highest ethical standards in valuation

Dialog - Internal
Lets bigin

Dialog - Internal
RULE NO 01.

Members and firms must be honest, act with integrity and comply
with their professional obligations, including obligations to RICS

That’s means,

Dialog - Internal
WHAT IS RICS?

RICS stands for the Royal Institution of Chartered Surveyors. It is a professional body that represents and
regulates professionals in the land, property, construction, and infrastructure sectors worldwide. RICS is
based in the United Kingdom but has a global presence and membership.

How it links with Valuation? Why we need to abid?

RICS sets and enforces professional standards and codes of conduct for its members to ensure high ethical and
professional standards in the industries they serve. They also provide education and training for individuals
pursuing careers in these sectors and offer various professional qualifications, including the MRICS (Member of
the Royal Institution of Chartered Surveyors) designation, which is highly respected in the industry.

The Rules of Conduct support positive change in the built and natural environments, through
promoting and enforcing the highest ethical standards in valuation

Dialog - Internal