FRE2 LO8: Ethics, professional behaviour, whistleblowing and CPD

Learning outcome 8 asks you to apply ethical principles to professional behaviour and judgements at work. AC8.1 covers ethical theories and the impact of codes of conduct. AC8.2 asks you to use a code of ethics to resolve dilemmas. AC8.3 asks you to tell ethical behaviour apart from compliance-driven behaviour, and covers whistleblowing and continuing professional development. In the CeMAP® FRE2 exam, ethics questions usually describe a situation and ask for the most ethical response, so this note ends with a method for working through dilemmas.

Values, morals and ethics

Term	Meaning	Example
Values	What a person or organisation believes is important	Honesty, fairness, loyalty
Morals	Personal beliefs about right and wrong, often from upbringing, culture or religion	"It is wrong to take advantage of someone who is upset"
Ethics	A reasoned system of principles that guides conduct, often shared by a group or profession	A professional code that requires advisers to put clients' interests first

Personal ethics are an individual's own standards. Business ethics apply ethical principles to how an organisation and its people behave towards customers, staff, shareholders and society.