Abstract
Professional ethics is one of the two pillars of the valuer’s business practice, alongside expert knowledge. Ethical principles are usually formulated within a code of professional ethics which valuers are obliged to follow. The approach to professional ethics is a complex problem and it is conditioned by several factors. In our study, we pose the question whether higher professional satisfaction of real estate valuers translates into more ethical attitudes regarding work-related dilemmas. We conducted research on property valuation services in two European markets: Austria and Poland. Data for the analysis was drawn from 176 surveys in which valuers were asked to respond to hypothetical work situations corresponding to the principles of the real estate valuer’s code. The results obtained using the ordinary least squares (OLS) and two-stage last squares (2SLS) regression methods allow us to conclude that higher job satisfaction positively impacts valuers’ ethical attitudes. The segment of the market served is also an important driver. Valuers who mainly work for property developers show a significantly lower level of ethical attitudes. The influence of the country on professional ethics is ambiguous.
Highlights
Problem overviewEthical issues apply to every profession
Whilst this study focuses on the professional ethics of valuers, it is worth noting that this practice can take various forms – individual business as well as contract employment with private and public organisations
The estimated models explain about 7–16% of the variation of the ethics index and in each version of the model, the coefficient for job satisfaction is statistically significant
Summary
They may concern a potential conflict between the intrinsic values, requirements and nature of a certain job and the principles and ethical climate of the organisation in which the employee works. The importance of ethics, is prominent in the liberal professions defined in the EU directive as “those practised on the basis of relevant professional qualifications in a personal, responsible and professionally independent capacity by those providing intellectual and conceptual services in the interest of the client and the public” (Directive, 2005/36/EC) (EUR-Lex, 2021). Due to information asymmetry which is intensified by the low repeatability of purchases of some professional goods and services, consumers may find it difficult to identify their quality (Paterson et al, 2007). Information asymmetry raises the principal–agency problem primarily in the relationship between the liberal service provider (agent) and their client (principal)
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