of Ethics Online Collection: 1969
Code of Professional Conduct
Adopted September 16, 1969
Amended March 28, 1980
A - SERVING THE CLIENT
1. Basic Responsibilities
1. 1 CMCs shall at all times place the interests of clients ahead of their own and serve their clients with integrity and competence.
1.2 CMCs will assume an independent position with the client, making certain that advice to clients is based on impartial consideration of all pertinent facts and responsible opinions.
1.3 CMCs will guard as confidential all information concerning the affairs of a client that is gathered during the course of the professional assignment.
1.4 CMCs will not take personal, financial, or other advantage of material or inside information resulting from their professional relationship with clients; nor will they provide the basis on which others might take such advantage.
1.5 CMCs will not serve two or more competing clients in areas of vital interest without informing each client.
1.6 CMCs will inform their clients of any special relationships, circumstances or interests that might influence their judgment or impair their objectivity.
2. Arrangements
2.1 CMCs shall, before accepting an assignment, confer with the client or prospective client in sufficient detail and gather sufficient facts to gain an adequate understanding of the problem, the scope of study needed to solve it, and the possible benefits that may accrue to the client. The preliminary exploration will be conducted confidentially on terms and conditions agreed upon by the consultant and the prospective client.
2.2 CMCs will accept only assignments for which they believe they are qualified. They will recommend that other professionals be retained whenever their special knowledge and skills are needed by the client.
2.3 CMCs will accept only assignments that they believe will be beneficial to the client.
2.4 CMCS will not serve a client under terms or conditions that might impair their objectivity, independence, or integrity; they will reserve the right to withdraw if conditions beyond their control develop to interfere, with the successful conduct of the assignment.
2.5 CMCs will not accept an assignment of such limited scope that they cannot serve the client effectively.
2.6 CMCs will present their qualifications for serving a client solely in terms of their competence, experience, and standing; they will not promise any specific result, such as amount of cost reduction or profit increase.
2.7 CMCs will perform each assignment on an individualized basis and develop recommendations designed specifically for the solution of each client's problems.
2.8 Except for those cases where special client relationships make it unnecessary, CMCs shall make certain that the client receives a written proposal that outlines the objectives, scope, approach, and, where possible, the estimated fee or fee basis for the proposed service or study.
2.9 If conditions change during an engagement, CMCs will discuss with the client any changes in the objectives, scope, and approach or other aspects of the engagement and obtain the client's agreement to such changes before taking action on them. Unless the circumstances make it unnecessary, they will confirm these changes in writing.
3. Fees
3.1 CMCs will not charge more than a reasonable fee. Determination of the reasonableness of a fee will be based upon: the nature of the services performed; the time required; the consultant's experience, ability and reputation; the degree of responsibility assumed; and the benefits that accrue to the client.
3.2 Wherever feasible, CMCs will agree with the client in advance on the fee or fee basis.
3.3 The valuation of services and the procedures by which charges are made are matters of individual preference and are based upon agreement between the consultant and the client. However, the pricing and charging practices should not serve to impair the independent status or objectivity of professional judgments of the consultant, or contribute to a conflict of interest with the client.
3.4 CMCs will neither accept nor pay fees or commissions to others for client referrals, or enter into any arrangement for franchising their practice to others; provided, however, that a CMC may agree with one or more other qualified consultants as to sharing of any fee or commission on a basis reasonably commensurate with the relative values of the services performed for the client.
3.5 CMCs will not accept fees, commissions, or other valuable considerations from individuals or organizations whose equipment, supplies, or services they might recommend in the course of their service to clients.
B - PROFESSIONAL PRACTICES
1. CMCs will strive continuously to advance and protect the standards of the management consulting profession.
2. CMCs will not associate in a responsible capacity for client work with any consultant who does not adhere to the standards represented by this Code of Professional Conduct.
3. CMCs recognize their responsibilities to the public interest and to their profession to contribute to the development and understanding of better ways to manage corporations, governmental organizations, and other institutions in our society.
4. CMCs recognize their responsibility to the profession to share with their colleagues the methods and techniques they utilize in serving clients.
5. CMCs will not knowingly, without their permission, use proprietary data, procedures, materials, or techniques that other management consultants have developed but not released for public use.
6. CMCs will not accept an assignment for a client while another management consultant is serving that client unless they are assured, and can satisfy themselves, that any conflict between the two engagements is recognized by, and has the consent of, the client.
7. CMCs will not endeavor to displace another management consultant once they have knowledge that the client has made a commitment to the other consultant, unless they are assured that the client is aware of any conflict between the two commitments.
8. CMCs will not advertise their services in self-laudatory language or in any other manner derogatory to the dignity of the profession.
9. CMCs will review for a client the work of another management consultant currently engaged by the client only with the other consultant's knowledge, provided that the client consents to the disclosure.
10. CMCs will strive to avoid not only professional improprieties but also the appearance of improprieties.
