Section A: Business Ethics And Ethical Conflict

Question 1

What is the nature of ethics?

Answer 1

Ethics explores the principles of right and wrong and evaluates actions based on moral standards.

Question 2

What are CIMA’s fundamental ethical principles?

Answer 2

• Integrity
• Objectivity
• Professional competence and due care.
• Confidentiality.

Question 3

What is CIMAs ethical checklist?

Answer 3

1: Check all facts and document where possible.

2: Is it ethical?

3: Is it legal?

4: Identify which fundamental principles are affected.

5: Identify the parties affected.

6: Possible course of action? Internal & External escalation.

7: Seek professional or legal advice.

8: Refuse to remain associated with the conflict.

Question 4

Which role oversees the application of ethical polices in an organisation?

Answer 4

Compliance / Ethical officer

Question 5

What are ethics?

Answer 5

Personal principles that guide behaviour

Question 6

How does a rule based approach to developing ethics differ from a framework based approach?

Answer 6

It attempts to anticipate every possible ethical dilemma

Question 7

What are the characterises of a framework approach to ethical codes?

Answer 7

Discretionary
Implicit
Prevention
Judgement
Values Driven
Principles based

Question 8

According to the CGMA report on responsible business, the application of ethics to business behaviour is?

Answer 8

Business Ethics.

Question 9

What type of threat is also known as a conflict of interest?

Answer 9

Self-Interest Threat.

Question 10

Under which circumstance may an accountant have to disclose information given to them in confidence?

Answer 10

When requested by a regulator.

Question 11

What are the personal virtues required by CIMA accountants?

Answer 11

Reliability
Responsibility
Respect
Timeliness
Courtesy

Question 12

According to CGMA Report what is the application of ethical principles to business behaviour?

Answer 12

Business Ethics

Question 13

According to CGMA Report what is Responsible Business?

Answer 13

An organisation operating in an economic, socially and environmentally sustainable way

Question 14

According to CGMA Report what is Ethical Performance?

Answer 14

The extent to which an organisation’s actual performance corresponds with its ethical values and commitments

Question 15

According to CGMA Report what is Ethical Management Information?

Answer 15

Qualitative or Quantitative information from a range of business sources that allows for the assessment of the organisation ethical performance

Question 16

What are the 7 principles of public life?

Answer 16

Selflessness
Integrity
Objectivity
Accountability
Openness
Honesty
Leadership

Question 17

In case of a conflict between the law & ethics and a contract & ethics, what should be followed?

Answer 17

Law & Ethics: Follow the Law.

Contract & Ethics: Follow Ethics