Ethics Overview

What is Ethics?

Ethics comes from the Greek word Ethos. It means character. For an individual, ethic is defined as a principle of right or good conduct. Ethics, for organizations such as IREM, are defined as the rules or standards governing the conduct of the members of a profession. Ethics are a personal meeting point between law and morality.

All IREM Certified Property Managers are expected to obey the laws. Obviously, breaking the law violates the Institute’s Code of Ethics. A law is defined as a rule of conduct or action prescribed or recognized as binding or enforced by a controlling civil authority. Morals are a set of personal beliefs. Ethics are somewhere in the middle, and deal with specific codes of behavior.

IREM History

IREM was founded in 1933 with ethics as its cornerstone to establish an organization of responsible real estate managers opposed to unethical business practices. The Institute was formed by representatives of real estate firms whose primary concern was the financial responsibility of those who were managing property for others. Each founding member firm was required to follow certain ethical standards of practice. Specifically, each firm agreed to avoid commingling funds, to carry a fidelity bond for all employees who handled money, and to refrain from reaping benefit from the use of a client’s funds without full disclosure.