Codes of conduct Flashcards
The code of ethics for accountants states that a principle based approach must be used. What three steps does this mean you must undertake?
Identifying, evaluating and addressing
Every company will have their own business code of ethics. These all have their own variations but what are typical examples of what they could include?
Compliance with the law
Competing fairly
How to act with integrity
Treating suppliers, partners and customers properly
Treating co-workers respectfully
Contributing to health and safety in the workplace
Respecting the environment and contributing to the community
Respecting human rights
Maintaining high standards financial record-keeping and reporting
Is the ethical code of conduct legally enforceable and can criminal sanctions be imposed for breaking the code of ethics
No it is not legally enforceable
No criminal sanctions cannot be imposed
What does IBE stand for?
Institute of Business Ethics
What are the three steps set out by the IBE as a simple test for ethical business decisions?
Transparency - do I mind others knowing what I have decided?
Effect - who does my decisions affect or hurt?
Fairness - would my decisions be considered far by the affected?
What does ‘Tone at the top’ mean?
The ethical atmosphere that is created in the workplace by the organisation’s leadership
What is tone at the top expected to do in regards to ethics?
It is expected that employees will follow the attitude of higher management and therefore if they are ethical it will ‘trickle down’ to lower employees
Define reputational risk
Something that threatens the good name of a business or its reputation
What are the key ethical organisational values that should be included in a business code of ethics?
Being transparent with colleagues, customers and suppliers
Reporting financial and regulatory information clearly and on time
Being open and honest by identifying when it is appropriate to accept ad give gifts and hospitality
Paying suppliers a fair price and on time
Providing fair treatment, decent wages and good working conditions for employees
Using social media - ensuring employees do not use social media to say offences things about competitors
Is an accountants personal ethical values important too?
Yes an accountant must be able to apply their own ethical values to a situation
What are the usual stages of internal disciplinary procedures?
A verbal warning A written warning A disciplinary hearing The opportunity to appeal Suspension from work Dismissal
What does FRC stand for?
Financial Reporting Council
What are the two types of misconduct?
Bringing the accounting profession into disrepute
Acting in breach of the rules and regulations of an accountants professional body
What penalties could you get for misconduct from a individual accounting body?
Be required to give a written undertaking to retain from continuing the misconduct in question
Be fined a sum of money not exceeding a maximum figure set by the professional accounting body
Be reprimanded or severely reprimanded
Be declared ineligible for a practising license
Have their membership suspended
Be expelled from the professional accounting body
