In our industry credit group meetings, each of us follows along as the Anti-Trust Compliance and Anti-Defamation Statements are read and then we quickly move on to the names submitted for discussion by each of the group members. I sometimes wonder how often members take the time to read and contemplate the information contained on the page entitled Canon of Business Credit Ethics that is located between the Anti-Trust Statement and the individual credit reports. I believe that it would be beneficial for each of us to review these cannons on a regular basis.

The Canons of Business Credit Ethics evolve over time but the essence remains the maintenance of high ethical standards. You may remember the previous statement which is still good advice: 

1. Justice, equity, and confidence constitute the foundation of credit administration.
2. Agreements and contracts reflect integrity and should never be breached by either party.
3. The interchange of credit information must be based upon confidence, cooperation, reciprocity, and confidentiality.
4. It is deemed unethical to be a party to unwarranted assignments or transfers of an insolvent debtor's assets nor should creditors participate in secret arrangements.
5. Creditors should cooperate for the benefit of all in adjustment or liquidation of insolvent estates or companies.
6. Creditors must render all possible assistance to honest debtors who become insolvent.
7. Dishonest debtors must be exposed and referred to the authorities.
8. Cooperation, fairness, and honesty must dominate in all insolvent debtor proceedings.
9. Costly administrative procedures in the rehabilitation or liquidation of an insolvent debtor shall be avoided at all times.
10. Members pledge themselves to uphold the integrity, dignity, and honor of the credit professional in all of their business dealings.

The newer version of the Canons of Business Credit Ethics is more generalized to fit a wider variety of situations but calls upon the credit professional to exercise more individual thought when applying the provisions to a much broader global market. When addressing the importance of business credit, NACM states on its website that "The cornerstone of the global business economy is the extension of commercial credit. As such, business credit executives, as the guardians of commercial receivables, play the vital and critical role of ensuring the flow of commercial goods and services that support world commerce." As credit professionals, we play an important role, and with this role, there also comes a great responsibility.

In performing our responsibilities as credit professionals and as members of NACM, we pledge to conduct our duties within the boundaries of the law and to not intentionally injure the reputation of others. Each of us pledge ourselves to the highest professional standards and principles, and by reading the Anti-Trust Compliance and Anti-Defamation Statements in group meetings, we are agreeing to abide by these statements. The last paragraph of the statement begins "The Association and Credit Groups endorse and comply with the highest standards of professional conduct . . ." Each group member is agreeing to guard, secure, and keep in confidence, the information that is exchanged for the sole purpose of analyzing and extending commercial credit within their individual company.

As NACM credit professionals we each pledge to:

• Adhere to the highest standards of integrity, trust, fairness, personal and professional behavior in all business dealings.
• Negotiate verbal or written credit agreements, contracts, assignments, and/or transfers with honesty, fairness, and due diligence to and for the benefit of all parties.
• Render reasonable assistance, cooperating with impartiality and without bias or prejudice, to debtors, third parties, and other credit professionals.
• Exchange appropriate, historical and current factual information to support the process of independent credit decisions.
• Exercise due diligence as required to prevent unlawful or improper disclosure to third parties.
• Disclose any potential conflict in all business dealings.

I am proud to be part of the NACM organization which promotes the highest standards of professional conduct and integrity. As members of NACM, each of us also acknowledges the importance of continued improvement of knowledge, skills, and expertise in business credit. As it states on the NACM website, "The pursuit of knowledge will support the strategic advancement of the commercial credit function, as it leads businesses to profitability and growth."