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The American Society

of Agricultural

Consultants

Ethics and Standards

of Professional Practice • •

ARA’s Broad Impact

* Authority

* Responsibility

* Accountability

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AUTHORITY

• 45% Of ASAC Members…Ag Development

• 38% “ “ “ …Finance/Economics

• 24% “ “ “ …Feasibility Studies

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RESPONSIBILITY

PURCHASE 926 ACRES @ $8,265 A. = $7,653,390

MAXIMUM DEBT THAT IS PRACTICAL

EXPAND HOG OPERATION…856 SOWS

DEVELOP BUDGET SYSTEM…95-98% ACCURACY

LABOR COSTS ARE TOO HIGH

SALES TO INVENTORY @ FMV = 31¢

DISCONTINUE 42 COW/CALF OPERATION

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ACCOUNTABILITY

• PURCHASING LAND @ $8,265/A.

• MAXIMUM DEBT THAT IS PRACTICAL

• EXPANDING HOG OPERATION

• DEVELOP & TRAIN BUDGET SYSTEM

• LABOR COSTS…& MANAGEMENT

• SALES TO INVENTORY @ FMV = 31¢

• ELIMINATING COW/CALF…HEARTACHE!

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- Benefits -

EducationCertification Publications

Personal EnrichmentNetworking

Ethical Standards

ASAC Membership

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• Ethics is defined as . . .Principles of conduct governing an

individual or group

• Moral is defined as. . .Principles of right and wrong behavior

conforming to a standard of right behavior

• Standard is defined as. . .A model which stands for or is accepted

as a basis for comparison

Definitions

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1. The person’s ethical standards are

different from society’s as a whole.

2. The person chooses to act selfishly.

Two Reasons Why People Act Unethically

Ethical Business Management[Bruce Weinstein…”The Ethics Guy”]

1. Do No Harm

2. Make Things Better

3. Respect Others

4. Be Fair

5. Be Compassionate

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How Does U.S. Society View Cheating?

1. Recent Harvard University Episode

a. Organized Cheating…125 Students [caught]

b. Honor System…Outdated?...Unrealistic?

2. Resumes Inflated…Common Practice a. Education

b. Experience

c. Previous Responsibilities

d. Previous Achievements

3. Soliciting Consulting Contracts 10

University of Massachusetts Study

1. 70% of U.S. Adults Lie

a. Some Individuals Apparently Prefer Lying

b. 500% More Prevalent Via Email…Anonymous

2.33%...Not Doing Anything Wrong

3.22%...Need Access To Unauthorized Information

4.19%...Employer Doesn’t Enforce Policies

5.16%...Inconvenient To Follow Policies

6.61%...Company’s Responsibility To Protect

7.Lying Occurs Individually…10-200 Times Daily11

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American Society of Agricultural Consultants

Summary of Code of Ethics

1. Conducting Business

2. Qualifications

3. Professional Honesty

4. Confidentiality

5. Competing Clients

6. Referring Clients &

Compensation for Using Product

7. Rights of Fellow

Consultants

8. Unethical/Illegal

Conduct by Other

Consultants

9. Promoting Services

10. Self-Discipline

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Business Conduct

A member is distinguished by the independence, objectivity, and

moral concern by which business affairs are conducted.

Code of Ethics (1)

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Qualifications

Members will accept only those engagements they are qualified to

undertake, and which, in the light of their knowledge and experience, are in the best interests of their clients.

Code of Ethics (2)

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Professional Honesty

A member can be depended upon to serve clients with true professional

honesty and will refuse to serve under terms or conditions that may impair the member’s independence,

objectivity, or integrity.

Code of Ethics (3)

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Confidentiality

A member respects and guards as confidential any information

obtained from clients which is of a sensitive and confidential nature.

Code of Ethics (4)

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Competing Clients

A member will serve two or more competing clients at the same time on problems of a conflicting nature

only with their full knowledge.

Code of Ethics (5)

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Referring Clients

Members shall not accept or pay fees for referring clients, nor will they

accept compensation, financial or otherwise, from persons or companies whose products,

equipment, or services they may recommend to clients during the

course of an engagement, without full disclosure to the client.

Code of Ethics (6)

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Rights of Fellow Consultants

A member shall always respect the rights of fellow consultants in

negotiating for professional work or advancement; and may use all

honorable means in competition for an assignment.

Code of Ethics (7)

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Unethical or Illegal Conduct by Other Consultants

A member will condemn unethical or illegal conduct by other consultants

Code of Ethics (8)

and shall report any information on violations of these principles to the Society’s Committee of Ethics for proper investigation and action.

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Promoting Services

Members shall promote their services in a professional and

dignified manner, being careful to avoid inaccuracies or misleading

statements.

Code of Ethics (9)

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Self-Discipline

Members recognize that the Society’s Code of Ethics signifies a

voluntary assumption of the obligation of self-discipline above

and beyond the requirements of the law. By it one strives to uphold the honor and maintain the dignity of the

profession.

Code of Ethics (10)

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Related to Agricultural Consulting

A. Competency ProvisionB. Departure ProvisionC. Jurisdictional ExceptionD. Performance Provision

American Society of Agricultural Consultants

Summary of Standards

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ASAC Standards (A)

Competency Provision

Must have the knowledge and experience necessary to complete the assignment

OR

Immediately disclose the lack of knowledge or experience to the client and take all

steps necessary or appropriate to complete the assignment competently

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Departure Provision

1. Under what conditions will the Departure Provision apply?

2. How does a consultant handle and report situations that are limited or different?

ASAC Standards (B)

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Jurisdictional Exception

If any part of these standards is contrary to the law or public policy of any jurisdiction, only that part

shall be void and have no force or effect in that jurisdiction.

ASAC Standards (C)

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Performance Provision

Minimum Performance Standards

• Identify specific client

• Nature and scope of work

• Any limitations or assumptions

• Compensation

• Time period

ASAC Standards (D)

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1. All Consulting Communications

2. Letter Consulting Reports

3. Comprehensive Consulting Reports

4. Continuing Relationships

ASAC Standards (D cont.)

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Disclosure Adverse Conditions Responsibility Misrepresentation Assumed Conditions Methodology

ASAC Standards (D cont.)

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Questions?

Thank you!