Applying Ethical Principles

Question 1

Fraud

Answer 1

An act or statement that creates an advantage but requires a false representation of the facts for it to be accepted. Intent distinguishes fraud from honest mistakes.

Question 2

Bribery

Answer 2

The offering, giving, receiving or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.

Question 3

Corruption

Answer 3

Deviation from honest behaviour. Corruption often involves fraud, but is not always for financial gain and may not be incentivised by the paying of a bribe.

Question 4

Problems of Bribery & Corruption

Answer 4

> Reputational damage as faith lost
Lack of honesty & faith in trusting decision-making
Conflict of interest between duties to principals & self-interest
International risk management
Economic issues (higher costs, lower quality?)

Question 5

Measures to Combat Bribery & Corruption

Answer 5

Proportionate procedures
Communication (training)
Due diligence
Risk assessment
Top-level commitment
Monitoring & review

Question 6

Key Areas for Corporate Ethics

Answer 6

1. Purpose & values of business
2. Employees
3. Customer relations & advertising
4. Shareholders/funds providers
5. Suppliers & supply chain issues
6. Community & charitable involvement
7. Implementation
8. Whistleblowing

Question 7

Ethical Principles

Answer 7

Professional behaviour
Integrity
Competence
Confidentiality
Objectivity

Question 8

Ethical Principles – Objectivity

Answer 8

Independence (ASSIF)
Prejudice
Bias

Question 9

Ethical Threats (ASSIF)

Answer 9

Advocacy
Self-interest
Self-review
Intimidation
Familiarity