CIMA fundamentals of ethics COrporate governance and business law

Fundamentals of Ethics,
Corporate Governance and Business Law
Certificate level | Subject BA4
CIMA official revision cards


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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Acknowledgements
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permission of CIMA.

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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

2


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

5


overview

fundamentals of ethics, corporate governance and business law

RevisionCards


FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW
Ethics
Corporate social
responsibility

Company
administration

Ethics,
corporate
governance
and
business
law

Law of
employment
10

Corporate
governance

Controls

Law of
contract


Business ethics

fundamentals of ethics, corporate governance and business law

RevisionCards

BUSINESS ETHICS

Nature of
ethics

Principles vs
rules

Business
ethics
CIMA code

12

Regulation


BUSINESS ETHICS
High quality ethical
standards

Worldwide professional
accountants

IFAC Code of Ethics
for Professional
Accountants
Professional
behaviour

Confidentiality

Fundamental
principles
Integrity

CIMA Code of Ethics
for Professional
Accountants

CIMA code

Objectivity

Professional Competence
and Due Care

Developed to assist management accountants
to identify potential ethical pressures
13

Reflects IFAC code

Apples to members
and students


BUSINESS ETHICS

The Individual

•• Lifelong CPD.

Members of CIMA must
abide by the Code of Ethics

•• Personal skills.
•• Technical updates.

Nature of
ethics

Safeguards

The Workplace
The Profession

•• Leadership.

•• Standards.

•• Controls.

•• Education.

•• Training.

•• Corporate governance.
•• CPD.
•• Discipline.

14

Self-interest

Familiarity

Threats

Intimidation

Self-review

Advocacy


BUSINESS ETHICS

Civil law

Employer controls and
disciplinary procedures

Regulations

Criminal law

15

Professional Institute
controls and disciplinary

procedures

IFAC

Independent
bodies

FRC


BUSINESS ETHICS
Basis of application of ethics

CHOICES

CHOICE

S

Principles based

CHOICES

Rules based

Flexible.

Provides clarity.

Allow self regulation by the profession.

Requires objective enforcement rather than
interpretation/application.

Sets cultural tone of an organisation.
Requires trust, honesty and effectiveness.

Compliance with rigid set of rules required.

Honesty

Selflessness

Principles of
public life

Integrity

Leadership

Objectivity
Accountability

16

Openness


BUSINESS ETHICS
Sample questions

Q1 Which of the following is not one of
the ‘7 principles of Public Life’?
AIntegrity
BLeadership
CAccountability
DProfessionalism

Answers
1(d)
2(c)

17

Q2 Which one of the following is
not one of the fundamental
principles of CIMA’s code
of ethics?
AIntegrity
B Professional behaviour
CCourtesy
DObjectivity