For ACCA students studying P1 Governance, Risk, and Ethics Powerpoint slide notes on the 9 concepts of corporate governance. Probity/honesty Integrity Fairness Responsibility Independence Judgment Transparency Accountability Reputation More resources at www.accaforstudents.com

1. The NINE CONCEPTS of
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More resources at:
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2. What is “CONCEPT”?
Basic IDEA
Principles
THEMES
Generally accepted rule

3. Mnemonic:
Penang
Indian Food
Restaurant In
Jalan Tunku
Abdul
Rahman

4. The 9 Concepts
• Probity/honesty
• Integrity
• Fairness
• Responsibility
• Independence
• Judgment
• Transparency
• Accountability
• Reputation

5. 1. PROBITY
HONESTY & TRUTH
NOT MISLEADING
STRONG MORALITY
“I cannot tell a lie”
-Abraham Lincoln

6. 2. INDEPENDENCE
Independent Vested Interest
Free from conflict of Influences
interest Connection/Relationship
Decisions/actions

7. 3. FAIRNESS
EQUAL-HANDED
BALANCED
NO BIAS
RESPECT RIGHTS &
VIEWS Stakeholders Stakeholders

8. 4. Responsibility
Clearly defined Track
Roles & Responsibilities Credit & Blame
“It was not my responsibility”

9. 5. Integrity
High MORAL VALUE
STRICT adherence to moral code
High PROFESSIONALISM
ACTIONS are honest, truthful, fair,
independent, etc without compromise

10. 6. Judgement
DECISIONS – for the good of the org
BALANCED EVALUATION
FACTORS

11. 7. Transparency
Open & clear DISCLOSURE
Not CONCEALING info
Transparency vs. Confidentiality?
Tajudin-Danaharta Case

12. Tajudin-Danaharta Case
Owes RM589m
Sue in court to
recover the debt A government linked-
Tan Sri Tajudin Ramli
(former MAS CEO) company (GLC)
February 2012 – out of court settlement
But the terms of the settlement remain
CONFIDENTIAL!
There should be transparency for the
interest of the public (the principal)

13. 8. Accountability
ANSWERABLE for the actions/decisions
Can ask QUESTIONS
In all relationships
Companies to Investors
Professionals to their values
Business to stakeholders
etc

14. 9. Reputation
“GOOD NAME” of the entity
Affects the business

15. More resources at:
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