MAS Practice Standards and Code of Professional Ethics Page 1

Redondo, Marc Eric B. Management Consultancy

BSA 4 June 19, 2014



MAS PRACTICE STANDARDS

1. Personal Characteristics. In performing Management Advisory Services, a practitioner
must act with integrity and objectivity and be independent in mental attitude.

2. Competence. Engagements are to be performed by a practitioner having competence in
the analytical approach and process, and in the technical subject matter under
consideration.

3. Due Care. Due professional care is to be exercised in the performance of a Management
Advisory Services engagement.

4. Client Benefit. Before accepting an engagement, a practitioner is to notify the client of
any reservations he has regarding anticipated benefits.

5. Understanding with Client. Before undertaking an engagement, a practitioner is to
inform his client of all significant matters related to the engagement.

6. Planning, Supervision and Control. Engagements are to be adequately planned,
supervised, and controlled.

7. Sufficient Relevant Data. Sufficient relevant data is to be obtained, documented and
evaluated in developing conclusions and recommendations.

8. Communication of Results. All significant matters relating to the result of the
engagement are to be communicated to the client.













MAS Practice Standards and Code of Professional Ethics Page 2

CODE OF ETHICS FOR MANAGEMENT CONSULTANTS

Code of Conduct for management consultants represents the attitude, principles and
approaches that have been found to contribute most to success and make for equitable and
satisfactory client relationship.

A summary of the Code of Ethics developed by the AICPA, Institute of Management Consultants
and Association of Management Consulting Firms, to promote the highest quality performance
in the practice of management consultancy is presented below.

The common principles found in the Code of Ethics can be broadly classified into four areas:
I. Basic responsibilities
II. Practice standards
III. Fee arrangements
IV. Business conduct


I. BASIC RESPONSIBILITIES OF MANAGEMENT CONSULTANTS

Integrity and objectivity

1. Do not knowingly misrepresent facts and never subordinate judgment to others.

2. Place the interests of clients ahead of personal interests and serve the client with
integrity.

3. Inform the clients of any special relationships, circumstances, or interests that might
influence judgment or impair objectivity.

4. Do not assume the role of management or take any positions that might impair
objectivity.


Independence

1. Take an independent position with the client, making certain that advice to a client is
based on impartial considerations of all pertinent facts and responsible opinions.

2. Do not serve an enterprise without independence with respect to that enterprise.

3. Do not serve a client under terms or conditions that might impair objectivity,
independence, or integrity. Reserve the right to withdraw if conditions develop that
interfere with the successful conduct of the assignment.
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4. Do not serve two or more competing clients in areas of vital interest without informing
each client.


Confidential Information

1. Guard as confidential all information concerning the affairs of a client that is gathered
during the course of a professional assignment.

2. Do not take advantage of material or inside information resulting from a professional
relationship with a client.

3. Do not disclose any confidential information obtained in the course of a professional
engagement except with the client's consent.


II. PRACTICE STANDARDS FOR MANAGEMENT CONSULTANTS

Professional competence

1. Undertake only engagements that can be completed with professional competence.

2. Accept only assignment for which the necessary qualifications are possessed.

3. Present qualifications for serving a client solely in terms of competence, experience, and
standing.


Planning, supervision, and due care

1. 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.

2. Accept only assignments believed to be beneficial to the clients, and do not accept any
assignment of such limited scope that the client cannot be served effectively.

3. Adequately plan and supervise an engagement.

4. Assign personnel qualified by knowledge, experience, and character to give effective
service in analyzing and solving the particular problem or problems encountered.

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5. Provide the client with a written proposal that outlines the objectives, scope, approach,
and - where possible - the estimate fee or fee basis for the proposed services, except
where client relationships make it unnecessary.

6. Exercise due professional care in the performance of an engagement.

7. If conditions change during the engagement, discuss with the client any changes in the
objectives, scope, and approach or other aspects of the engagement and obtain the
client's agreement (preferable in writing) to such changes before taking action on them.

8. Obtain sufficient relevant data to afford a reasonable basis for conclusions or
recommendations in relation to an engagement.

9. Do not knowingly without permission use proprietary data, procedures, materials, or
techniques that others have developed but not released for public use.


Reporting results

1. Perform each assignment on an individual basis and develop recommendations designed
specifically for the solution of each client's problems.

2. Develop solutions that are realistic and practical and that can be implemented promptly
and economically.

3. Acquaint client personnel with the principles, methods, and techniques applied, so that
the improvement suggested or installed can be properly managed and continued after
completion of the engagement.

4. Maintain continuity of understanding and knowledge of clients problems, and the work
that has been done to solve them, by maintaining appropriate files of reports submitted
to clients.

5. Do not guarantee any specific result, such as the amount of cost reduction or profit
increases.

6. Do not permit your name to be used in conjunction with any forecast of future
transactions in a manner that could lead to the belief that you vouch for the achievability
of the forecast.





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III. FEE STRUCTURE STANDARDS FOR MANAGEMENT CONSULTANTS

1. Charge reasonable fees that are commensurate with the nature of services performed and
responsibility assumed. Reasonableness is based on services performed, time required,
experience, ability, reputation, responsibility assumed, and benefits that accrue to the
clients.

2. Do not offer or render professional services under an agreement whereby no fee will be
charged unless a specified finding or result is obtained, or whereby the fee is otherwise
contingent on the findings or results of the services.

3. Where feasible, agree with the client in advance on the fee or fee basis.

4. Do not pay a fee or commission to obtain a client or franchise a business practice; do not
accept a commission, fee, or other valuable consideration for recommending products or
services.

5. Do not structure pricing or charging practices in a way that impairs independence or
objectivity or contributes to a conflict of interest with the client.


IV. BUSINESS-CONDUCT STANDARDS FOR MANAGEMENT CONSULTANTS

1. Strive continuously to advance and protect the standards of the consulting profession.

2. Contribute to the development and understanding of better ways to manage
corporations, governmental organizations, and other institutions in our society.

3. Share methods and techniques used in serving clients.

4. Avoid not only professional improprieties but also the appearance of improprieties, and
never commit an act discreditable to the profession.

5. Do not advertise services in a manner that is false, misleading, deceptive, self-laudatory,
or in any other manner derogatory to the dignity of the profession.

6. Do not concurrently engage in any business or occupation that would create a conflict of
interest in rendering professional services.

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7. Do not accept an assignment for a client while another management consultant is serving
that client unless satisfied that any conflict between the two engagements are recognized
by, and have the consent of the client.

8. Do not make offers of employment to consultants on the staff of another consulting firm
without first informing the other firm.

9. Do not solicit employees of clients, for the purpose of employing them, except with the
clients consent.

10. Do not associate, in a responsible capacity respecting client work, with any consultant
who does not adhere to the code of professional ethics.


Each consultant has a responsibility to himself or herself, to the profession to live by this code
of ethics and encourage others to do the same. Enforcement of the code is everyones
responsibility.