What is the difference between the Standards of Business Practice and the Realtor Code of Ethics?
The Standards of Business Practice and the Realtor Code of Ethics are guidelines that industries voluntarily adopt to reflect professional and societal values, going beyond legal requirements. These include a commitment to ethical obligations such as safe and environmentally friendly practices as well as corporate responsibility.
Voluntarily Accepted Guidelines
The Standards of Business Practice are typically not mandated by law but are rather guidelines that are voluntarily accepted within their respective industries. In comparison, the Realtor Code of Ethics represents a commitment by those within the real estate industry to abide by a set of professional standards that may go beyond what is strictly required by law. The key difference is that while there may be legal requirements for businesses, many industries set higher ethical standards which their members pledge to follow.
For example, professional organizations such as the IEEE-CS provide the Software Engineering Code of Ethics that imposes obligations on software engineers to ensure the safety and efficacy of their software without causing harm to society or the environment. These ethical guidelines are therefore a blend of voluntary commitment and adherence to normative moral theories.
Corporate responsibility is a critical element of such codes, as businesses craft these policies to align with legal obligations as well as societal values, covering crucial areas like non-discrimination and environmental stewardship. Moreover, professional organizations articulate clear expectations for their members' conduct, as seen in the standards set by the American Statistical Association, which also relate to federal laws concerning the use of research data.
In historical contexts, participation in professional associations like the National Recovery Administration (NRA) was voluntary, with incentives such as displaying the Blue Eagle Emblem to encourage adherence. However, the effectiveness of such voluntary codes can be mixed, as evidenced by the NRA's struggle to maintain industry compliance without overreach, leading to challenges and eventual court rulings limiting its power.