What is the purpose of a code of ethics?

• A. Maintains the reputation of the profession in the eyes of the public
• B. Provides guidelines to ensure that human actions are morally fair as well as lawful
• C. Sets compensation standards for professionals
• D. Ensures all transactions are profitable

Answer: (B)

The main purpose of a code of ethics is to provide guidelines for professional conduct that ensure actions are morally fair as well as lawful. It sets expectations for integrity, confidentiality, honest dealing with clients and the public, and managing conflicts of interest, shaping how decisions are made in real-world scenarios. Following these guidelines helps professionals act in a way that earns trust and meets both ethical norms and legal requirements. It isn’t about setting compensation standards or guaranteeing profitability, though upholding ethics can support a good reputation and market trust.