Cima code of ethics

    Cards (43)

    • 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
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