Cima code of ethics

• What is the CIMA code of ethics?


  A set of ethical guidelines and principles that all CIMA members and registered students must adhere to
• What are the 5 fundamental principles of the CIMA code of ethics?


  Integrity, Objectivity, Professional Competence and Due Care, Confidentiality, Professional Behavior
• What is the conceptual framework approach in the CIMA code of ethics?


  A process of identifying, evaluating, and applying safeguards to address threats to compliance with the fundamental principles
• What are the key types of threats to the fundamental principles?

  Self-interest, self-review, advocacy, familiarity, intimidation
• Why is the CIMA code of ethics important?

  Maintains public trust, guides decision-making, protects stakeholders, upholds professional standards, ensures compliance
• What is the most severe consequence for violating the CIMA code of ethics?

  Revocation of CIMA membership
• How does the CIMA code of ethics benefit a company hiring a CIMA member?

  Provides assurance about the ethical standards and behavior they can expect from the CIMA member
• What is a familiarity threat in the CIMA code of ethics?

  When a close relationship with a client or employer compromises objectivity
• Who created the CIMA code of ethics?

  The Chartered Institute of Management Accountants (CIMA)
• What is an intimidation threat in the CIMA code of ethics?

  When a professional is deterred from acting objectively due to actual or perceived pressures
• Essential concepts for CMA members

  • Reliability
  • Responsibility
  • Respect
  • Timeliness
  • Courtesy
  • Independence of mind
  • Independence of appearance
  • Professional scepticism
  • Accountability
  • Social responsibility
• Reliability


  You should be trustworthy and dependable
• Responsibility


  You should take ownership for your actions and decisions
• Respect


  You should develop constructive relationships, and this involves listening and understanding other people's points of view
• Timeliness


  Being able to work within agreed timeframes
• Courtesy


  Conducting yourself with courtesy, consideration and good manners
• Independence of mind


  Being able to act with integrity and professional scepticism
• Independence of appearance


  Do third parties consider you to be independent of mind?
• Professional scepticism


  Questioning the veracity of information provided to you, challenging management assertions and being alert to misstatements due to error or fraud
• Accountability


  Being responsible and answerable for your actions
• Social responsibility


  The individual as a stakeholder in society must behave with integrity, courtesy, respect and due care
• Responsible business


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


  The application of ethical values to business behaviour and all the business's strategic and operational activities
• Ethical performance


  The extent to which an organisation's actual behaviour corresponds to its ethical values and commitments
• Ethical management information


  Information that allows the assessment of an organisation's ethical performance
• Integrated reporting


  An approach to corporate reporting based on integrating non-financial information with traditional financial information
• Ethical issues for organisations

  • Data and information security
  • Equality and discrimination
  • Human rights
  • Conflict of interest
  • Bribery
  • Supply chain management
  • Responsible marketing
  • Remuneration policies
  • Whistleblowing
  • Employee safety and security
• CIMA and the Institute of Business Ethics jointly produced guidance to help organisations form or embed an ethical policy
• Embedding ethical values


  A guide for CMA partners covering aspects of ethical behaviour
• Aspects covered in "Embedding ethical values"

  • Ensuring business behaviour reflects ethical values
  • Why produce a code of ethics?
  • Is a code enough?
• Core values


  Non-negotiable foundations of the organisation's ethical standards
• Codes of ethics


  Help prevent misconduct and show employees what is expected of them
• Good practices for a code of ethics

  • Base the code in core values
  • Code should be given to all employees
  • Provide a system for reporting breaches
  • Cover ethical issues in corporate training
• Bad practices for a code of ethics

  • Allowing exceptions to be made
  • Just putting up a copy on a noticeboard
  • Failing to investigate reports
  • Failing to feature the code in training
• CIMA and the Institute of Business Ethics produced a second guidance document, "Business Ethics for SMEs"
• Examples of ethical challenges

  • Whether to meet a customer deadline and supply faulty goods
  • How to get employees to work properly and ethically
  • Helping employees balance work and personal obligations
  • Being told that a payment is required for a new contract
  • Whether to delay payments to suppliers when cash is limited
• Benefits of making values explicit

  • Increased employee loyalty
  • Improved reputation
  • Attraction of higher-calibre staff
  • Open and innovative culture
  • Goodwill in local communities
  • Reduced borrowing and insurance costs
  • Supports ethical behaviour
• Accountants should be aware that their work may affect their company's stakeholders or the public
• Independence


  An important quality for accountants to demonstrate when providing assurance services
• Two key elements of independence

  • Mind and appearance
  • Thought and appearance