1.4.1 Legislative Provisions on Ethical Conduct

• Legal Provisions means all statutes, laws, ordinances, rules, regulations, judgments, orders and decrees of any Governmental Entity.
• The process of legislation on ethical issues should be structured as a process of interaction between the legislature and society, or relevant sectors of society, so that the development of new moral norms and the development of new legal norms may reinforce each other.
• And legislation on ethical issues should be designed in such a way that it is an effective form of communication which, moreover, facilitates an ongoing moral debate and an ongoing reflection of such issues, because this is the best method to ensure that the practice remains oriented to the ideals and values the law tries to realize.

1.4.2 The Constitution

• This is a set of fundamental norms and principles that society has decided to govern or regulate itself. It includes all of the political system’s agreed-upon contents. It establishes the foundations of government. 
• A constitution is a public document that governs the State’s relations with its citizens and the State’s organs. It is a collection of the fundamental rules and principles a society has decided to control or regulate itself.
• It includes the political system’s agreed-upon contents. A constitution defines the essential framework of governance. The Kenyan Constitution serves as the foundation for all other laws. Any law that violates the Constitution is null and void.
• Article 2 (4) of the Constitution provides ” any other law inconsistent with the Constitution, the Constitution shall prevail, and the other law shall be void to the extent of the inconsistency”. Any inconsistent law can be passed if only the Constitution is first amended by the voles of not less than 65% of all the members of the National Assembly and supported by Presidential assent.

1.4.3 Public Officers Ethics Act

• This Act may be cited as the Public Officer Ethics Act, 2003. It sets out a general Code of Conduct and Ethics for public officers. 
• A public officer shall, to the best of his ability, carry out his duties and ensure that the services that he provides are provided efficiently and honestly.
•  It states that:-

1. A public officer shall conduct his private affairs in a way that maintains public confidence in the integrity of his office.
2. Treat the public and his fellow public officers with courtesy and respect
3. Discharge any professional responsibilities in a professional manner.
4. A public officer shall not neglect his financial obligations or neglect to settle them.
5. A public officer shall carry out his duties in accordance with the law.

1.4.4 Leadership and Integrity Act, Other Legislative and Regulatory Requirements

• One of the keys to a positive and productive work environment is having leaders who act with integrity.
• Integrity in leaders refers to being honest, trustworthy, and reliable.
• Leaders with integrity act in accordance with their words (i.e. they practice what they preach) and own up to their mistakes, as opposed to hiding them, blaming their team, or making excuses.
• Integrity also involves following company policies, appropriately using company time and resources, and respecting one’s colleagues and direct reports.
• It is important to remember that a leader’s behavior reflects on not only their own reputation, but also on the reputation of the organization.
• The guiding principles of leadership and integrity include:-

1. Selection on the basis of personal integrity, competence and suitability, or election in free and fair elections;
2. Objectivity and impartiality in decision making, and in ensuring that decisions are not influenced by nepotism, favoritism, other improper motives or corrupt practices;
3. Selfless service based solely on the public interest, demonstrated by honesty in the execution of public duties and  the declaration of any personal interest that may conflict with public duties.
4. Accountability to the public for decisions and actions;
5. Discipline and commitment in service to the people.

1.4.5 Role of KASNEB, Professional Bodies and Other Regulatory Bodies in Enforcing Ethical Conduct

The functions of KASNEB should be to:-

1. Prepare syllabuses for professionals’ and technicians’ examinations in accountancy and company secretarial practice and related disciplines;
2. Make rules for such examinations;
3. Arrange and conduct examinations and issue certificates to candidates who have satisfied examination requirements;
4. Promote recognition of its examinations in foreign countries;
5. Investigate and determine cases involving indiscipline by students registered with the Examinations Board;
6. promote and carry out research relating to its examinations;
7. promote the publication of books and other materials relevant to its examinations;
8. liaise with the Ministry of Education in the accreditation of institutions offering training in subjects examinable by the Board; and
9. do anything incidental or conducive to the performance of any of the preceding functions.

1.4.6 Penalties and Sanctions for Unethical Conduct

• The penalty part of a code of conduct lets employees know what to expect if they break a rule before they do.
• Discipline procedures and policies should be written down in the code of conduct so there is no room for interpretation.
• This is especially important if you want to avoid discrimination or wrongful termination lawsuits.
• In most cases, rules and punishment systems are set up by human resources staff and given to both supervisors and employees.
• Penalty systems typically address two categories of wrongful behavior:-

1. Minor and
2. Major

• Minor code violations often result in a series of oral and written warnings, as well as restricted employment privileges and duties.
• Companies can impose stronger sanctions for repeat violators by following these steps and documenting repeated warnings.
• Certain violations of codes are so serious that they warrant heavier(major) penalties, even on a first offense.
• Violent behavior, threats directed at coworkers or bosses, theft, or abuse of authority are all considered serious offenses.
• Demotions, job transfers, wage reductions, and, in the most severe circumstances, termination are all common sanctions.