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Sample Ethical Wall Agreement

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  • 04/23/2023

When it comes to ethical considerations in business, one important step that organizations can take is creating what is known as an ethical wall. This is a barrier or set of rules that helps prevent conflicts of interest and ensures that employees are acting in the best interest of the company and its clients.

To help establish an ethical wall within your organization, it is crucial to have a clear and comprehensive agreement in place. Here is a sample ethical wall agreement that you can use as a starting point:

1. Purpose

The purpose of this ethical wall agreement is to establish rules and guidelines for how employees of the organization are to conduct themselves in situations where conflicts of interest may arise.

2. Scope

This agreement applies to all employees of the organization, including contractors and third-party vendors.

3. Prohibited conduct

Employees are prohibited from engaging in any conduct that could create a conflict of interest or be perceived as unethical, including but not limited to the following:

a. Providing services to a client that is in conflict with the interests of another client.

b. Accepting gifts or other types of compensation from a client, vendor, or other third party that could influence their decision-making.

c. Sharing confidential information with individuals who are not authorized to receive it.

4. Preventing conflicts of interest

To prevent conflicts of interest, employees shall:

a. Disclose any potential conflicts of interest to their supervisor or the company’s ethics committee.

b. Refrain from providing services to clients where a conflict of interest exists.

c. Abstain from participating in decision-making processes that could be influenced by a conflict of interest.

5. Confidentiality

Employees shall maintain strict confidentiality with regard to all client information and shall not share such information with anyone who is not authorized to receive it.

6. Penalties for violation

A violation of this ethical wall agreement may result in disciplinary action, up to and including termination of employment.

7. Reporting violations

Employees who become aware of a violation of this ethical wall agreement shall report it to their supervisor or the company’s ethics committee.

By adopting an ethical wall agreement like the one outlined above, organizations can ensure that their employees are acting ethically and in the best interest of the company and its clients. While the specifics of an agreement may vary depending on the nature of the business, having a clear and comprehensive set of rules in place is essential for maintaining a culture of ethics and integrity.


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