2 - CIMA's Code of Ethics Flashcards
what are the responsibilities of CIMA and its members when it comes to ethics
- duty to protect public interest
- IFAC requires CIMA to apply standards no less stringent than IFACs, it is constantly revised
- CIMA Code of Ethics For Professional Accountants = standards expected of members
- members expected to use them in everyday reasoning
CIMAs code of ethics AIMS
- identify nature of personal responsibility accountants have
- provide guidance on identifying situation s where there may be ethical pitfalls
- provide guidance on how to address pitfalls and difficult qs
CIMAs code of ethics FUNDAMENTAL PRINCIPLES
- objectivity = free from bias
- professional competence and due care = technically competent
- professional behaviour = not doing anything to negatively impact reputation
- integrity = honest and straightforward
- confidentiality
what are the instances whereby confidential information can be disclosed
- permitted by law
- permitted by client or employer
- required by law
- permitted by professional duty or right
what are the 5 groups of threats to fundamental principles
- self interest = conflict of interest
- self review = they wont appropriately evaluate results of previous judgement
- advocacy = promote clients position to point where objectivity is compromised
- familiarity = too sympathetic to interests
- intimidation = perceived pressures
actions to overcome threats
- eliminate circumstances causing threat
- apply safeguards to reduce level of threat
- decline/end professional activity
what are cima’s safeguards
- education/training
- corporate governance requirements
- duty to report ethical breaches
- professional/regulatory monitoring
- complaints systems
other non cima, workplace friendly safeguards
- internal controls and oversight
- ethics/codes of conduct
- stricter recruitment procedures
- disciplinary processes
- ethical leadership
- awareness of communication channels
personal qualities that CIMA expect of their members
- reliability
- responsibility
- respect
- timeliness
- courtesy
professional qualities that CIMA expect of their members
- independence of mind (iom)
- independence of appearance (how others perceive your iom)
- professional scepticism = applying right level of scepticism
- accountability
- social responsibility
which terms are identified in the CGMA responsible business report
- responsible business = ESG and economic way of operating
- business ethics = business principles and application of values
- ethical performance = actual behaviour corresponding to values
- ethical management information = quant/qualitative to allow performance evaluation
- integrated reporting = non financial info included
examples of ethical issues for organisations
- data/info security
- discrimination
- human rights
- conflict of interest
- bribery
- supply chain management
- responsible marketing
- remuneration policies
- whistleblowing
- employee safety
why produce a code of ethics
help prevent misconduct
how do businesses ensure behaviour reflects values
commit to identified core values eg integrity, honesty, respect etc
how to emphasise code
embedded into communications and training to integrate into culture
