9. Laugh Cry Anger
Disbelief Horror Relief
Belief Happy Sad

12. How ethical are you? - 1
You have bought something in a store. When you have left
you discover that you have been given the wrong change –
instead of giving you $10 you have been given $20
• Keep the cash
• Or return it to the store

13. How ethical are you? - 1
If you return the money would it be because:
• It is wrong not to return someone else’s money
• It would not be fair to the shop assistant / owner
• You might get found out and prosecuted for theft.

14. •
•
•

15. •
•
•
•

16. •
•
•

17. •
•
•
•

20. Business Ethics
Ethics
Definition
Business (and) Ethics

21. What are Ethics ?

22. top 1% of lookups and is the 51st most popular word on
Merriam-Webster.com
a guiding philosophy
the principles of conduct governing an individual or a
group <professional ethics>
a set of moral principles : a theory or system of moral
values
the discipline dealing with what is good and bad and with
moral duty and obligation

23. branch of knowledge that deals with
moral principles
moral principles that govern a person’s
behaviour or the conducting of an
activity

24. • virtues (such as justice, charity, and generosity) to
act in ways that benefit both the person
possessing them and that person’s society
Aristotle
• concept of duty central to morality: humans are
bound, from a knowledge of their duty as rational
beings, to respect other rational beings
Kant
• asserts that the guiding principle of conduct should
be the greatest happiness or benefit of the greatest
number
Utilitarianism

25. rongryte

26. rongryte

27. 3 Levels of code
Code of
Business Ethics
Business Conduct
Professional Practice

28. Values
Stakeholders
Publicly
available
How to implement
Guidance

29. Rules
Employees
Internal (Not
Public)
Compliance
Guidance

30. Rules
Professions
Members /
Public
Compliance
Guidance

32. Ethics and accountants
ALL – different moral philosophies:
• Our PRINCIPLED CONCIENCE – we do the right thing
because it is fair
• Our SOCIAL CONCIENCE – we decide what is right by
considering the consequences on others
• Our RULES CONCIENCE – we do not need to think
because rules tell us what is right and wrong

33. CIMA’s standards and ethics
• The concepts of ethics, social responsibility and
sustainability are not new to our business.
• Ethics and CIMA’s adopted code sit at the core of the
practice of management accountants, are embedded in our
values and are a key component of our qualification and
professional recognition

34. Professionalism and ethics
• Integrity
• Objectivity
• Professional competence and due
care
• Confidentiality
• Professional Behaviour

35. Integrity
• Straightforward
• Honest
Objectivity
• Not to allow one’s professional or
business judgement to be overridden
by:
• Bias
• Conflict of interest
• Undue influence

36. Confidentiality
• Maintain confidentiality
Professional
Behaviour
• Obligation to comply with relevant law and
regulations
• Avoiding any action that discredits the
profession

37. Professional
Competence
and Due Care
• Maintaining professional knowledge and
skills
• Ensuring sound and independent
judgement

38. Professionals and ethics
www.cassknowledge.com/research/article/trust-and-values-city
Those who are members of professional institutions
tend to feel more personally engaged in handling ethical
issues, whereas those who are not members of a
professional body tend to look to their employer's
senior management for action

39. Sustainability pitfalls
“If ... You can't be a good example, then you'll just have to be
a horrible warning.”
When individuals act with out the long term view and ethical
failures come to light the result is a loss of public trust, brand
damage, impact on market value, and, often increase in
regulations
Examples:

40. Ethics Survey
Majority of organisations
have codes and supporting
initiatives

41. An average of
80% have a code
of ethics globally –
and this is
reflected in
different markets
Does your organisation provide a code of ethics or similar document to guide
staff about ethical standards in their work?
Ethics Survey

42. Do you ever feel under pressure from your colleagues or manager to
compromise your organisation’s standards of ethical business conduct?
One third of
respondents may feel
under pressure from
colleagues or
managers to
compromise their
organisations’
standards
Ethics Survey

43. Pressures vary across markets, perhaps reflecting challenges in external
operating environment
Do you ever feel under pressure from your colleagues or manager to
compromise your organisation’s standards of ethical business conduct?
Ethics Survey

44. 444444
Key findings –
Role of the management accountant
 Being guided by ethical
conduct is key
 83% view it as a part of
their role. Of these, over
one in four see it as a
major part
To what extent is managing your
organisation’s ethical performance a part of
your role now?

45. 454545
Key findings
 There are many ways that they contribute, primarily upholding
the code of ethics
What ways do you contribute to management of ethical performance

46. Finance and fraud
• A typical fraudster is male, aged 36 to 45, holds a senior job in finance,
has worked for his company for more than a decade and acts in collusion
with a partner
• Examples: mis-statement of financial results, theft and expense abuse
• Most fraudsters work in their company's finance department (32%),
• After finance, fraudsters are most likely to work in the chief executive's or
managing director's office (26%, up from 11% in 2007) or in operations
and sales (25%)
KPMG: analysis of global patterns of fraud 2011

47. Finance and fraud
• Big jump in the number of cases involving the exploitation of weak
internal controls – up to 74% in 2011 from 49% in 2007”
• But personal greed remains the prime motivation for fraud, followed
by pressure to reach tough profit and budget targets
• There tends to be less fraud in companies that make intolerance of
fraud part of the corporate culture and which set realistic and
achievable targets for employees

48. Benefits of ethical business: Corporate return
Improved employee
relations
High performance
corporate culture
Understanding
Stakeholders’ needs
Responding to
environmental
agenda
Business sustainability

50. Ethical Dilemmas
Case study: exam results

51. Case study: withholding information
You are a CIMA member who is a non-executive director of a large services
company. The board of directors meets on a monthly basis to discuss the
quarterly forecast and other business issues.
It is the responsibility of the finance director to distribute papers at least two
weeks prior to the date of the meeting. These papers should first be signed off
by the CEO. Recently documents have only been received a day before the
meeting. You have raised this with the finance director who has stated the
delay is due to the sign-off by the CEO. You do not feel that you are given
sufficient time to review the papers, and also believe the information that is
available is not complete and therefore difficult to fully appraise. The CEO is a
very dominant character and many members of the board are nervous about
broaching the matter..

52. Ethical Conflict Questions
1. What are the ethical issues facing the member?
2. Which of the fundamental principles of the Code are
relevant?
3. What are the threats to the principles?
4. Is there any further information needed?
5. What courses of action are available? What would you do
next?

53. How do we support it?
• Research/publications
• Roundtable / focus group events
• Help lines
• Web presence & resources
• Oversight of members and students

54. How do we deliver it?
• Setting standards
• Approval by external regulators
• Licensing / Annual monitoring - CPD
• Oversight of members and students