Management and Organizational Studies 2275A/B Chapter Notes - Chapter 22: Misrepresentation, Fiduciary, Professional Liability Insurance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Businesses depend on professional service: which can be either supplied in house" or provided by outside firms, most mid to large sized businesses have professionals in house. Professional someone engaged in an occupation, usually governed by a professional body, requiring the exercise of specialized knowledge, education, and skill. Professionals who are employees are governed by the employment law. Professionals who are external to the firm are governed by contract law. Ethical issues tend to arise when the business is under stress. Professionals must be careful to avoid conflict of interest and must deal with them promptly as they arise. If the cost of hiring someone outside the firm is too large, the company will likely hire one of their employees. Likely a company will still require outside professionals time to time. Responsibility of professionals to clients and others who rely on their work. Professional responsibilities will be defined by terms in the contract created by the professional and client.