As the Christmas party season approaches, Nigel Howell, ICAEW’s Head of Investigation, reminds firms and individuals of their obligations under the Disciplinary Bye-laws and Code of Ethics.
Workplace Christmas parties are a time for relaxing, having fun, and connecting with colleagues, which can sometimes create an environment where people forget the need to behave professionally. Make sure you don’t act in a way you could later regret, that ends up with a complaint to ICAEW about your conduct.
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 and firms 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.
Based on this, 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.
“We don't want to stop people enjoying the party, celebrating the year’s achievements and having fun,” stresses Nigel Howell, Head of Investigation in ICAEW’s Professional Standards Department.
“But unfortunately, we are seeing a rise in cases of inappropriate behaviour being referred to us, including at these sorts of work events,” he says. Examples of behaviours reported to ICAEW range from unwanted attention to verbal or physical abuse and sexual misconduct or harassment.
“We’re seeing a whole range of incidents reported to us,” says Nigel. “And at the extreme end, some of this behaviour amounts to a criminal offence.”
Greater awareness of the issues, for example the publicity around the “#MeToo” movement, is playing a role in the rise in complaints. And there have also been some high-profile cases where regulators have sanctioned the professionals involved.
“People are certainly more aware,” says Nigel. “And this has probably made them more likely to report incidents to us.”
“Christmas parties should be happy events and hopefully everybody has a great time,” Nigel emphasises. “But they’re also fertile ground for something to go wrong, so I would urge firms to take responsibility and think about potential issues when they’re planning their events.” It’s much better to prevent things going wrong in the first place then to have to deal with the aftermath.
Firms are generally much more alive to these misconduct issues now, and they know that if they don't deal with it properly, there could be serious reputational damage.
A simple risk assessment should help to ensure things go smoothly, safely and without incident.
It’s also a good idea to warn staff that although parties may be happening outside working hours or the working environment, they don’t leave their obligations as an ICAEW member at the office door.
During a work-related event, staff are still subject to their obligations as an ICAEW member, so they should make sure they don’t take part in potentially offensive ‘banter’ or use inappropriate language, or make any unwelcome advances, or become verbally or physically abusive.
One of the issues ICAEW will consider in deciding what makes a potential conduct case is, of course, the conduct itself.
“But we will also look at the nature of the professional relationship between the individuals involved,” says Nigel. “Depending on the nature of the conduct, it may become more serious for us as a regulator if an individual has used their senior position in order to initiate an improper encounter with a junior member of staff.”
“If you’re an ICAEW member or firm, and you see something going on 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 Nigel. “We have provided specific guidance, which includes examples of behaviour we would want to have referred to us, in relation to the Duty to Report Misconduct, which can be found here.”
Reporters could be firms, victims or witnesses to the misconduct. “Once we receive a report, we will carry out our own investigation and then, if we have sufficient evidence, bring the matter before one of our disciplinary committees,” says Nigel.
To support victims and witnesses, ICAEW is currently adapting its processes and procedures. “We will shortly be publishing new guidance on how we assist witnesses through our process, and how we are making the process easier to navigate and more supportive,” he adds.
“The guide sets out what people can expect, and lists potential measures we could put in place,” he explains. “If we have a tribunal witness, and they are 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.”
So, although social events at work might blur the lines between what individuals think of as their personal and professional lives, it is important to maintain professional standards.
“We’re protecting the reputation of ICAEW members and firms, and the accountancy profession in general,” says Nigel.
Firms need to remind themselves of the Code of Ethics, check ICAEW’s guidance on the Duty to Report Misconduct, plan events with this in mind, and make sure they have up-to-date and robust policies about what is acceptable behaviour.
Individuals need to 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.
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 and firms 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.
Based on this, 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.
“We don't want to stop people enjoying the party, celebrating the year’s achievements and having fun,” stresses Nigel Howell, Head of Investigation in ICAEW’s Professional Standards Department.
“But unfortunately, we are seeing a rise in cases of inappropriate behaviour being referred to us, including at these sorts of work events,” he says. Examples of behaviours reported to ICAEW range from unwanted attention to verbal or physical abuse and sexual misconduct or harassment.
“We’re seeing a whole range of incidents reported to us,” says Nigel. “And at the extreme end, some of this behaviour amounts to a criminal offence.”
Greater awareness of the issues, for example the publicity around the “#MeToo” movement, is playing a role in the rise in complaints. And there have also been some high-profile cases where regulators have sanctioned the professionals involved.
“People are certainly more aware,” says Nigel. “And this has probably made them more likely to report incidents to us.”
Take responsibility
“Christmas parties should be happy events and hopefully everybody has a great time,” Nigel emphasises. “But they’re also fertile ground for something to go wrong, so I would urge firms to take responsibility and think about potential issues when they’re planning their events.” It’s much better to prevent things going wrong in the first place then to have to deal with the aftermath.
Firms are generally much more alive to these misconduct issues now, and they know that if they don't deal with it properly, there could be serious reputational damage.
A simple risk assessment should help to ensure things go smoothly, safely and without incident.
It’s also a good idea to warn staff that although parties may be happening outside working hours or the working environment, they don’t leave their obligations as an ICAEW member at the office door.
Watch the bar
Excess alcohol is often involved in reports of unprofessional behaviour at workplace parties or social events.
“Firms want staff to have a good time, so they might provide a free bar,” says Nigel. "But if firms choose to do that, they may want to consider how they manage it. The CIPD, the professional body for HR and people development, offers some helpful guidance which firms may want to consider."
For example, the CIPD advises
- offering just a few complimentary drinks instead;
- allocating managers responsibility for ensuring staff don’t become unwell or disruptive;
- serving non-alcoholic drinks as well as alcohol.
Remember you’re still a Chartered Accountant outside the office
“Individuals also need to take responsibility for their actions and behaviours during these social occasions,” emphasises Nigel.During a work-related event, staff are still subject to their obligations as an ICAEW member, so they should make sure they don’t take part in potentially offensive ‘banter’ or use inappropriate language, or make any unwelcome advances, or become verbally or physically abusive.
One of the issues ICAEW will consider in deciding what makes a potential conduct case is, of course, the conduct itself.
“But we will also look at the nature of the professional relationship between the individuals involved,” says Nigel. “Depending on the nature of the conduct, it may become more serious for us as a regulator 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 the 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’re an ICAEW member or firm, and you see something going on 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 Nigel. “We have provided specific guidance, which includes examples of behaviour we would want to have referred to us, in relation to the Duty to Report Misconduct, which can be found here.”
Reporters could be firms, victims or witnesses to the misconduct. “Once we receive a report, we will carry out our own investigation and then, if we have sufficient evidence, bring the matter before one of our disciplinary committees,” says Nigel.
To support victims and witnesses, ICAEW is currently adapting its processes and procedures. “We will shortly be publishing new guidance on how we assist witnesses through our process, and how we are making the process easier to navigate and more supportive,” he adds.
“The guide sets out what people can expect, and lists potential measures we could put in place,” he explains. “If we have a tribunal witness, and they are 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 unprofessional behaviour, whatever the context, also brings significant reputational risks for firms.So, although social events at work might blur the lines between what individuals think of as their personal and professional lives, it is important to maintain professional standards.
“We’re protecting the reputation of ICAEW members and firms, and the accountancy profession in general,” says Nigel.
Firms need to remind themselves of the Code of Ethics, check ICAEW’s guidance on the Duty to Report Misconduct, plan events with this in mind, and make sure they have up-to-date and robust policies about what is acceptable behaviour.
Individuals need to 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.