When we think of “professions,” law and medicine often come to mind first. In the business world, public accounting is also recognized as a profession. But what truly defines a profession? And can business be considered a professional pursuit?
The Hallmarks of a Profession: The Three E’s
Professions are typically characterized by three core elements:
- Education: Higher education is often the entry point, with graduate degrees or specialized training being common. Continuing education is also vital, ensuring professionals stay current in their field. Some professions mandate continuing education, while others may require re-testing to maintain credentials.
- Experience: Practical experience is indispensable. Some skills can only be honed through real-world application. Many professions require a certain number of years of experience before granting a license. Even after retirement, maintaining currency through practice may be necessary.
- Ethics: A higher calling and a commitment to the public interest are central to professionalism. Professionals prioritize the needs of their clients, patients, or customers over their own. Many professions have formal codes of ethics, with violations leading to sanctions.
Is Business a Profession?
While business may lack a universal code of ethics, many sub-disciplines within business do have ethical standards. This has led some to question whether business can truly be considered a profession.
However, this doesn’t mean that businesspeople can’t be professionals. In fact, many business professionals embody the hallmarks of professionalism:
- Client-Centric Focus: They prioritize the needs of their clients or customers, understanding that this is not just ethical but also good business.
- Continuing Education: They actively engage in lifelong learning, staying abreast of industry trends and evolving best practices.
- Specialized Knowledge: They possess expertise in their specific field, whether through formal education, certifications, or extensive experience.
The Difference Between a Job and a Profession
In essence, the distinction between a job and a profession boils down to mindset and approach. A job may be seen to an end, a way to earn a living. A profession, on the other hand, is a calling, a commitment to a higher standard of service and conduct.
The Three E’s in Action: CFP® Certificants and CFA® Charterholders
Let’s take a closer look at how these core elements of professionalism manifest in two well-respected financial designations:
1. Education:
- CFP® Certificants: To earn the CFP® certification, candidates must complete a rigorous education program covering financial planning, investments, insurance, taxes, estate planning, and ethics. They must also pass a comprehensive exam.
- Continuing Education: Once certified, CFP® professionals are required to complete 30 hours of continuing education every two years, including two hours of ethics training. This ensures they stay abreast of the latest developments in the field and maintain their commitment to ethical practice.
- CFA® Charterholders: The CFA® program is known for its demanding curriculum, focusing on investment analysis, portfolio management, and ethical standards. Candidates must pass three levels of exams, each building on the previous one’s complexity.
- Continuing Education: While not mandatory, the CFA Institute strongly recommends that CFA® Charterholders complete a minimum of 20 hours of professional learning activities each year, including at least 2 hours in Standards, Ethics, and Regulations (SER). This encourages them to maintain their knowledge and skills in the ever-evolving investment industry.
2. Experience:
- CFP® Certificants: In addition to education, CFP® professionals must accumulate at least three years of relevant experience in financial planning before earning the right to use the CFP® marks.
- CFA® Charterholders: CFA® Charterholders are also required to have four years of qualified work experience in the investment decision-making process.
3. Ethics:
- CFP® Certificants: CFP® professionals are bound by the CFP Board’s Code of Ethics and Standards of Conduct, which emphasize fiduciary duty, integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence.
- CFA® Charterholders: CFA® Charterholders adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct, which similarly prioritize integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence.
Conclusion:
While business may not fit the traditional definition of a profession in every aspect, individuals within the business world can certainly embrace professionalism. By prioritizing ethics, continuous learning, and client service, business professionals can elevate their work beyond a mere job and make a positive impact on their clients, their industry, and society.