When it comes to the real estate profession, IREM was quick to address the intersection of ethics and globalization, and stepped forward to take a role in establishing ethical standards for real estate and related professions that crossed geographic borders. The vehicle for tackling this issue was the International Ethics Standards Coalition (IESC), which held its first meeting at the United Nations in New York in 2014. IREM was one of 16 founding members that came together for this purpose. The outcome was an agreement to promote a higher level of professionalism on a global basis by creating a single shared set of International Ethics Standards.
The initial International Ethics Standards were published in 2016. These standards set out to serve as an anchor to appropriate behaviors and help ensure consistency and clarity irrespective of business practices in different markets. Adherence to the standards seeks to better promote values that allow ethical business to flourish and create transparency, which in turn fosters greater trust and confidence in the real property sector.
The Standards were embedded into the IREM Code of Professional Ethics in 2017 when the Governing Council voted to add these words to the Pledge contained within the Code: “I pledge myself to acknowledge the ethical principles as set forth in the International Ethics Standards established by the International Ethics Standards Coalition of which the Institute is a member.” Similar language is contained in the AMO® Code of Professional Ethics. Thus, all IREM members are pledged to comply with the International Ethics Standards in concert with their commitment to comply with the IREM Code.
International Ethics Standards get a refresh
Like the real estate profession itself, best practices change and new knowledge emerges, requiring standard setting to be a continuous and dynamic process. Acknowledging this, two years after their adoption, the original Standards were subjected to a rigorous review. This resulted in an updated version of the International Ethics Standards that was adopted by the IESC in May of this year.
One of the changes to the International Ethics Standards is a new introductory paragraph that speaks to the purpose of the Standards and the fundamental beliefs they set out:
“This statement of principles relates to fundamental tenets of the professions that form the basis for ethically robust professional behaviour. It shall be applied in all the professional relationships in which practitioners are involved. It reflects the varied contexts in which they work and the challenges they face locally, nationally and globally. It provides an ethical framework to support professional reflection upon human rights and obligations in all settings, whether complex or straightforward. As an example, acting sustainably is an emerging ethical consideration and practitioners are encouraged to become familiar with global initiatives such as the United Nations Sustainable Development Goals (UN SDGs).”
The core of the Standards is found in a series of ethical principles. Listed in alphabetical order – not in order of importance – the new Standards contain 12 principles that deal with:
- Accountability
- Confidentiality
- Conflict of interest
- Diversity
- Financial responsibility
- Integrity
- Lawfulness
- Reflection
- Respect
- Standard of service
- Transparency
- Trust
Two of these principles are new, added this year: those that address diversity and respect. These two new principles speak directly to the times. They embody responses to concerns and challenges that have been raised in conversations around the world. And they are in full alignment with the direction IREM is taking in weaving diversity, equity, and inclusion into the fabric of the organization.
The two additions to the International Ethics Standards read as follows:
“Diversity: Practitioners shall promote an environment that is inclusive and open to enable people of varied abilities and identities to enter and thrive in their workplaces and respective professions.
“Respect: Practitioners shall treat others with consideration; shall avoid diminishing any person’s capacity for freedom, privacy and independence; and shall recognize the importance of both engaging with others without discrimination or prejudice and sustaining their wellbeing and personal safety.
You can read the complete 2021 version of the International Ethics Standards on the IESC website.
About the International Ethics Standards Coalition
IREM had a role in development of the Standards, which was done through a standard-setting committee appointed by the IESC and comprising real estate company representatives, industry leaders, and international ethics and compliance experts spanning 11 countries. The standard setting committee includes two prominent CPMs: Fred Prassas of LaCrosse, Wisconsin, and William P.J. McCarthy of Vancouver, British Columbia.
The IES Coalition itself has grown from the original 16 founders to some 130 real estate and related professional bodies, many of which, like IREM, already have their own codes of ethics. The Coalition exists as the vehicle for harmonizing many extant codes of conduct representing many different markets, professions, and organizations while, at the same time, encouraging those organizations to retain their own codes specific to their professions. In short, it exists to establish and promote over-arching standards at an international level that are then implemented and delivered locally. The standards themselves are owned by the whole Coalition and not by any one organization. Go to the IESC website to learn more.
A board of trustees provides oversight and guidance to the IESC and promotes the use of these Standards. Each coalition member has representation on this board. IREM’s trustee is former IREM President, Joseph Greenblatt, CPM®, who was part of the initial IESC meeting at the United Nations, and has served as a trustee ever since.
As president and CEO of Sunrise Management, Inc., AMO®, in San Diego, Greenblatt also has enrolled Sunrise is an IES Supporter. By doing this, he acknowledges that Sunrise Management stands behind the Standards and sees them as a step toward increasing public trust in the industry. IES Supporters include property-related businesses, investors, corporate occupiers, property advisory firms, developers, representative organizations, academic bodies, and government bodies that commit to promoting the standards and encouraging their adoption. Learn more about becoming an IES Supporter.