This paper examines the H&R Block Code of Business, Ethics, and Conduct, analyzing its ethical foundations and practical applications within a large tax preparation organization. The paper identifies the code's grounding in deontological ethics—specifically Kantian duty-based theory—and explores how this framework shapes obligations for all employees, managers, and associates. Key provisions covering confidentiality, client relationships, gift prohibitions, and compliance reporting are discussed. The paper also evaluates the code's effectiveness, suggests a targeted revision to the gifts-and-gratuities policy, and considers the overall impact of the code on the organization's professional reputation and client relationships.
H&R Block is a tax services company specializing in tax calculations, tax return preparation for individuals and organizations, and advisory services related to taxation. The company describes its role as offering the most trusted, state-of-the-art tax preparation experience at a great price for everyone. Its mission statement reinforces this commitment: "H&R Block's mission is to help our clients achieve their financial objectives by serving as their tax and financial partner" (H&R Block, 2006). The company's corporate values reflect who it is and the environment it seeks to maintain — one defined by client satisfaction and accountability for decisions, actions, and results.
Because of the nature of its business, reputation is one of H&R Block's most important assets. Maintaining that reputation through the highest standard of integrity is central to the organization's operations, which is why its code of business ethics carries such significance. The code applies to every member of the organization — employees, associates, managers, and members of the board of directors alike.
H&R Block's ethical system is based primarily on adherence to written rules set out in its formal Code of Business, Ethics, and Conduct. In other words, the organization employs a duty-driven, or deontological, ethical approach. Deontological theory holds that people must adhere to their obligations and duties when analyzing an ethical dilemma, meaning that a person must uphold his or her obligations to other parties in situations of uncertainty or when pursuing compliance — because this is what is considered ethically right. As Prof. Richard Norman (2011) notes, deontologists consider actions to have intrinsic value. It is an ethical approach that judges human action by its adherence to rules and argues that rules bind human beings to their duty.
This is why the code contains a specific clause enumerating the parties subject to its rules. The section titled "We Are All Subject to the Code" stipulates at length that the rules are to be followed by virtually everyone working for or on behalf of the organization. Even those relating to the organization in an indirect capacity — such as suppliers — are expected to help uphold the ethics embedded within the code for the good of the organization. As a prerequisite, each member is expected to read, understand, and sign the code as a commitment, as specified in the "Acknowledgement and Certificate of Compliance" section. This leaves no room for a relativist approach: the rules and codes of conduct governing professional behavior within the organization are comprehensively covered in the document.
The deontological approach is closely tied to Immanuel Kant's theory of duty. Kant argued that the only genuinely good thing is the will — not the results. Therefore, if good results arise from an action carried out with the wrong motive, the action is still considered wrong. For instance, if someone lies in order to help a friend out of trouble, the action is deemed wrong regardless of its outcome. It is not the result that determines whether an action is good or evil, but the motive of the doer before the action is taken.
There is a subtle provision for individual judgment within this duty-based system. Where an individual believes they should be exempt from a particular clause of the code, the document states: "You must report all possible exceptions that are known to you. If you become aware of an exception after you sign an Acknowledgement, you must immediately inform your manager and the Ethics Team." This provision accounts for situations in which an individual may feel that acting outside a prescribed rule would still lead to the right outcome, while maintaining accountability through required reporting.
The code of ethics applies to all employees, managers, and directors in a broadly similar manner; however, it also contains specific provisions directed at the management and leadership team. On page 4 of the Code of Business, Ethics, and Conduct, under the section titled "Special Responsibilities of All Managers and Leaders," the management is required to go beyond ordinary leadership duties and work actively toward the successful implementation of the code.
Specifically, managers are required to: ensure that all employees reporting to them receive a copy of the code and sign it annually as a compliance requirement; ensure that employees understand the legal requirements and implications of the code's provisions; conduct themselves in an exemplary manner for junior staff; prioritize compliance with the code above business results; solicit suggestions for improvement; identify compliance issues as they arise; and report any violations of the code — as well as any violations of applicable federal laws — to the appropriate parties within the organization.
On the other hand, there are responsibilities bestowed upon every member of the organization, from employees all the way up to directors. The code applies even to contingent workers, as they represent the face of the company and must adhere to the code for the duration of their service to the organization.
All employees are required to: conduct all company business honestly and with the highest integrity; observe all laws and government regulations applicable to their position; fully understand the code and other relevant internal procedures; report all violations of the code to their supervisors; conduct themselves in a professional manner at all times; and avoid any unethical or illegal situations that could reflect negatively on them or the organization.
The code also emphasizes discipline: violations of the letter or spirit of the code may result in legal punishment, termination of employment, or civil or criminal penalties. Additionally, the code underscores personal responsibility — each individual is accountable for their own decisions and must not take any action in violation of the code, even when acting on instructions from directors or other authority figures.
The code addresses the need for strict confidentiality regarding organizational information. Information about company associates is to be kept confidential to the greatest possible extent. The same standard applies to customer information: all relevant legislation governing the protection of personal information must be observed. In situations where information must be shared with legal bodies such as courts, the process must go through supervisors and the organization's legal department.
"Code requirements for all staff and contingent workers"
"Rules on information privacy and client conduct"
"Critical review and the code's organizational effects"
You’re 73% through this paper. Sign up to read the remaining 3 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.