CODE OF PROFESSIONAL ETHICS AND …

1 Revised 1 CODE OF PROFESSIONAL ETHICS AND STANDARDS OF PRACTICE FOR arizona association OF community MANAGERS I. INTRODUCTION AACM is dedicated to representing the interests of community association management companies throughout the State of arizona by promoting the utmost professionalism in the industry. Membership in AACM requires that the Member Company and representatives thereof, Individual Member, or CAAM Participant demonstrate the highest levels of honesty, integrity, and capability to their clients, other firms, service providers, and fellow Members of AACM. There are two categories of Membership in AACM: Management Company Memberships are for the business entity of a management company.

2 Individuals within a Member management company are not eligible for AACM Membership, but may receive the educational and networking advantages of Membership through their employment with the Member management company. Individual Memberships are for those individuals who wish to become a Member of AACM, but rather than being employed by a Member management company: are employed as an HOA Coordinator for a builder or developer are employed directly by a community association as a community manager are employed as a community manager for a non-member Management Company, or With regard to excellence, it is not enough to know, but we must try to have and use it.

3 Aristotle The ideals which have always shone before me and filled me with the joy of living are goodness, beauty, and truth. To make a goal of comfort or happiness has never appealed to me; a system of ETHICS built on this basis would be sufficient only for a herd of cattle. Albert Einstein Revised 2 earned their CAAM certification as a community manager but are no longer performing community management duties and wish to maintain their CAAM certification. Membership in AACM is voluntary. AACM s Code of PROFESSIONAL ETHICS and Standards of Practice were adopted in order to provide guidance and rules for all members in the performance of their PROFESSIONAL responsibilities.

4 By seeking and attaining certification, the AACM Individual Member or management company Member s representative assumes an obligation of self-discipline above and beyond the requirements of laws and regulations pertaining to corporations and their members (as stated in the arizona Revised Statutes, Title 10, Chapters 1 & 19). A. WHY ETHICS ? Reduced governmental control Reduced litigation Positive public perception Professionalism The principles behind the ethical rules express the profession's recognition of its responsibilities to the public, to clients, and to colleagues. They guide Members and individuals in the CAAM Certification Program in the performance of their PROFESSIONAL responsibilities and express the basic tenets of ethical and PROFESSIONAL conduct.

5 The principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage. B. WHAT IS ETHICAL? In Harvard Business Review s " ETHICS Without the Sermon" (Volume 59, 1981), Laura L. Nash created twelve questions for examining the ETHICS of business decisions. The following list represents ten of those questions that are applicable to AACM Members and individuals in the CAAM Certification Program. If a Member or an individual in the CAAM Certification Program is at all unsure that an action or failure to act may be considered unethical, the Member or individual should try analyzing the event by applying these questions prior to making a decision: 1.

6 Have you defined the problem accurately? 2. How would you define the problem if you stood on the other side of the fence? 3. How did this situation occur in the first place? 4. To whom and to what do you give your loyalty as a person and as a member of the corporation? Revised 3 5. What is your intention in making this decision? 6. How does this intention compare with the probable results? 7. Whom could your decision or action injure? 8. Can you discuss the problem with the affected parties before you make your decision? 9. Are you confident that your position will be as valid over a long period of time as it seems now? 10. What is the symbolic potential of your action if understood?

7 If misunderstood? II. STRUCTURE OF AACM A. BOARD OF DIRECTORS The affairs of AACM shall be governed and managed by a Board of Directors comprised of between three (3) and twelve (12) persons who are each the designated representative for a voting and active Member management company. The Board of Directors shall be elected for staggered two-year terms during or at the conclusion of the Annual Meetings. The following officers of the Board shall be appointed by the Board of Directors for one-year terms: Chair Chair-Elect Immediate Past Chair (may or may not be an elected director) Vice-Chair(s) Secretary Treasurer B.

8 PROFESSIONAL STANDARDS COMMITTEE The PROFESSIONAL Standards Committee ( PSC ) shall be appointed by the Board of Directors. The PSC shall be comprised of seven (7) individuals who satisfy the certain criteria as described in the PROFESSIONAL Standards Committee Charter, including but not limited to: 1. Active CAAM certification; 2. Member management company s Designated Member or executive-level Designated Committee Representative 3. At least 5 years experience in the arizona community association management industry; 4. Participate in PSC s monthly meetings; Revised 4 5. Employment by an AACM Member management company in good standing; and not employed by the same company as another member of the PSC; 6.

9 No ETHICS violations resulting in disciplinary action. The Board of Directors grants to the PSC the authority and responsibility to: 1. Establish, subject to Board approval, and maintain categories of violations for which Members and Members representatives may be sanctioned, including but not limited to: a. Failure to comply with the association s policies, including its standards for Member behavior [including but not limited to the AACM Code of PROFESSIONAL ETHICS and Standards of Practice]; b. A Member s, senior management of a Member s, or Participant s conviction of, or plea of guilty or no contest with respect to charges of serious criminal conduct related to the Member s or Participant s business.

10 The Board or a committee authorized by the Board is responsible for determining whether a matter involves serious criminal conduct; or c. Failure to pay dues or special assessments within the time frames (including grace periods) established by the Board of Directors. With respect to such categories, establish and maintain, subject to Board approval, criteria for the application of sanctions that are appropriate under the circumstances. Such sanctions may include expulsion, suspension, fines, and other consequences appropriate under the circumstances. 2. Establish, subject to Board approval, and maintain a membership discipline process under which: a.