What is one of the obligations under the Statements of Principle applicable to all firms?

One of the fundamental obligations under the Statements of Principle applicable to all firms is to act with integrity. This principle emphasizes the importance of maintaining honesty and ethical standards in all business dealings. Acting with integrity fosters trust between firms and their clients, stakeholders, and the wider community. It entails being truthful in representations, honoring commitments, and ensuring that actions are morally sound. By adhering to this principle, firms not only comply with regulatory expectations but also enhance their reputation, build long-lasting relationships, and contribute positively to the overall integrity of the industry.

In contrast, other options might fail to align with the core ethical values that underpin effective and reputable business practices. For instance, acting with transparency in communications is important, but integrity encompasses more than just transparency; it also involves the ethical considerations behind decisions and actions. Similarly, ensuring profitability at all costs could lead to unethical behavior and practices that undermine the firm's integrity. Engaging in competitive tactics might involve strategies that are legal but could cross ethical lines if they harm competitors or mislead consumers. Thus, while these aspects are significant, they do not encapsulate the foundational obligation of integrity as outlined in the Statements of Principle.