EDRM Code of Conduct/Principle 1 - Professionalism

From Working EDRM

Comments: Please submit comments to the EDRM Code of Conduct forum

Contents 1 Principle & Corollary 1.1 The Principle 1.2 The Corollary 2 Discussion 3 Best Practices (with links to examples) 4 Examples

Principle & Corollary

The Principle

Service providers should perform their work in a competent, accurate, timely and cost-effective manner, adhering to the highest standards of professionalism and ethical conduct.

The Corollary

Clients should be forthright, accurate and timely in their communications with service providers and act at all times in accordance with the highest professional standards of ethical conduct.

Discussion

Clear communication, honesty, competence, accuracy and diligence are essential practices in establishing and maintaining business relationships. However these practices are required by all parties to an engagement. A Service Provider’s ability to comport with the best practices set forth herein require the Client to be equally compliant with these practices, particularly in providing accurate and timely information related to its objectives and expectations for the engagement, and in responding to a Service Provider’s inquiries intended to meet those objectives in a timely and cost-effective manner. Best practices under this principle additionally address a Service Provider’s ability by way of its knowledge and experience to identify potential cost saving alternatives to a client’s directions, the reasonableness of fees charged by Service Providers in accordance with the market for their services; and the use of truthful and non-misleading information by Service Providers in promoting their services.

Best Practices (with links to examples)

1. Competence:^{[1] [2]} A Service Provider shall provide competent performance of services to a Client. Competent performance requires the knowledge, skill, thoroughness and preparation reasonably necessary for the engagement.
2. Advice: In representing a client in an advisory capacity, a consulting Service Provider shall exercise independent professional judgment and render candid advice. In rendering advice, a Service Provider may refer to outside considerations that may be relevant to the client's situation.
3. Accuracy: Service Provider and Clients shall provide each other with accurate and reasonably verifiable information and resulting materials in connection with each engagement.
4. Diligence: A Service Provider shall act with reasonable diligence and promptness in performing work for a Client.
5. Communication:^[3]

   A Service Provider shall:

   1. Reasonably consult with the client about the means by which the client's objectives are to be accomplished;
   2. Keep the client reasonably informed about the status of the matter;
   3. Promptly comply with reasonable requests for information; and
   4. Consult with the client about any relevant limitation on the vendor’s conduct when the vendor knows that the client expects assistance not permitted by law or by ethical considerations set forth herein.

   A Client shall:

   1. Promptly inform a Service Provider of any circumstance that may materially alter that Service Provider's engagement, including, but not limited to, changes in scope, and payment for services rendered or to be rendered;
   2. Keep the Service Provider reasonably informed about the status of the engagement; and
   3. Promptly comply with reasonable requests for information that may assist the Service Provider in performance of its duties.
6. Reasonable Fees and Expenses:^[4] A Service Provider shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses. The factors to be considered in determining the reasonableness of a fee include the following:
   1. The novelty and difficulty of the engagement, and the skill requisite to perform the service properly;
   2. The likelihood, if apparent to the Client, that the acceptance of the particular engagement will preclude other employment by the Service Provider;
   3. The fee customarily charged in the locality for similar services;
   4. The amount involved and the results obtained;
   5. The time limitations imposed by the Client or by the circumstances;
   6. The nature and length of the professional relationship with the client; and
   7. The experience, reputation, and ability of the Service Provider and its personnel in performing the services.
7. Cost-Effective Alternatives:^{[5] [6]} A Service Provider shall make reasonable efforts to inform its Client of reasonably foreseeable cost-effective alternative processes and solutions for achieving the Client's intended objectives as known by the Service Provider.
8. Confidentiality: A Service Provider shall not reveal information relating to an engagement unless the Client gives written consent for such disclosure, the disclosure is impliedly authorized in order to carry out scope of the engagement, the disclosure is required to enforce a legal or contractual right or obligation, the disclosure is necessary to respond to allegations in any proceeding concerning the engagement, or the disclosure is required to comply with law or a court order.
9. Information About Services:^[7] A Service Provider not make a false or misleading communication about the Service Provider or its services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading.

Examples

1. ^  Example - Best Practice 1.1: A client asks a Service Provider to bid on a project to scan and code 100 boxes of documents. The Service Provider has never coded before. The Service Provider may take the project so long as it takes all necessary steps to perform the project competently.
2. ^  Example - Best Practice 1.2: Same as 1.1 except after the Service Provider bids on the project, the client states that it needs the project completed in less time than the Service Provider bid. The Service Provider may not rebid the project to comply with the client’s time parameters unless the Service Provider can ensure that it will meet the deadlines and perform the work competently.
3. ^  Example - Best Practice 5: After beginning to process data, the Service Provider discovers that the amount of data greatly exceeds the amount initially estimated by client. Service Provider should communicate with the client and discuss alternatives that may be more time or cost efficient for client in managing data as well as all other issues arising from the new estimates such as timetables and cost.
4. ^  Example - Best Practice 6: Same as 5. In the event that price breaks may be implicated by the increased amount of data, Service Provider should pass those along to client.
5. ^  Example - Best Practice 7.1: Client seeks processing of data. Service Provider has a proprietary solution available and a commercial solution available that can both process the data at the same speed and with the same accuracy. Service Provider’s profits from the proprietary solution are higher than in using the commercial solution. Service Provider charges the client the same price for either solution. Service Provider may use its proprietary solution.
6. ^  Example - Best Practice 7.2: Same as 7.1 except the commercial solution's cost to the client is lower than the proprietary solution. Unless Service Provider can honestly distinguish the results from the proprietary solution from the commercial solution, the Service Provider must use the commercial solution.
7. ^  Example - Best Practice 9: Client wants Service Provider to perform domestic coding at a coding facility. Service Provider uses a "virtual" coding floor to manage costs. Service Provider must disclose this to client.