CIMA fundamentals of ethics COrporate governance and business law

Fundamentals of Ethics, Corporate Governance and Business Law... FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW Published by: Kaplan Publishing UK Unit 2 The Business Cent

Fundamentals of Ethics,

Corporate Governance and Business Law

FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW

Published by: Kaplan Publishing UK

Unit 2 The Business Centre, Molly Millars Lane,

Wokingham, Berkshire RG41 2QZ

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All rights reserved

No part of this publication may be reproduced, stored in

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Acknowledgements

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British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN 978-1-78740-184-6 Printed and bound in Great Britain

FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW

Contents

• Business ethics

• Ethical conflict

• Corporate governance

• Controls

• Corporate social responsibility

• The law of contracts

• The law of employment

• Company administration

fundamentals of ethics, corporate governance and business law

RevisionCards

FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW

Corporate governance Corporate social

responsibility

Company

administration

Law of contract

Ethics, corporate governance and business law

Ethics

Controls

Law of employment

Business ethics

fundamentals of ethics, corporate governance and business law

RevisionCards

BUSINESS ETHICS

Principles vs

rules

Nature of ethics

Business ethics

CIMA code

CIMA Code of Ethics for Professional Accountants

Professional behaviour

BUSINESS ETHICS

IFAC Code of Ethics

for Professional

Accountants

Fundamental

principles

Developed to assist management accountants

to identify potential ethical pressures

Confidentiality

Professional Competence and Due Care

Objectivity Integrity

High quality ethical

standards Worldwide professional accountants

Reflects IFAC code

Apples to members and students

BUSINESS ETHICS

Threats

Members of CIMA must abide by the Code of Ethics

Familiarity Self-interest

Self-review Advocacy

Intimidation

The Individual

• Lifelong CPD.

• Personal skills.

• Technical updates.

The Profession

• Standards.

• Education.

• Corporate governance.

• CPD.

• Discipline.

The Workplace

• Leadership.

• Controls.

• Training.

Safeguards Nature of

ethics

BUSINESS ETHICS

Employer controls and disciplinary procedures

Professional Institute controls and disciplinary procedures

IFAC

FRC

Civil law

Criminal law

Basis of application of ethics

BUSINESS ETHICS

Flexible

Allow self regulation by the profession

Sets cultural tone of an organisation

Requires trust, honesty and effectiveness

Provides clarity

Requires objective enforcement rather than interpretation/application

Compliance with rigid set of rules required

Principles of public life

Honesty Openness Leadership Accountability

Objectivity Integrity

Selflessness

CHOICES

CHOICES CHOICES

Sample questions

Q1 Which of the following is not one of

the ‘7 principles of Public Life’?

A Integrity

B Leadership

C Accountability

D Professionalism

Q2 Which one of the following is not one of the fundamental principles of CIMA’s code

of ethics?

A Integrity

B Professional behaviour

C Courtesy

D Objectivity

Answ ers (d) 1

2 (c)

BUSINESS ETHICS