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 The Business Centre, Molly Millars Lane, Wokingham, Berkshire RG41 2QZ Copyright © 2018 Kaplan Financial Limited All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Acknowledgements The CIMA Publishing trademark is reproduced with kind permission of CIMA Notice The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties Please consult your appropriate professional adviser as necessary Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials 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 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 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’? A Integrity B Leadership C Accountability D Professionalism 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? A Integrity B Professional behaviour C Courtesy D Objectivity ... law of employment • Company administration overview fundamentals of ethics, corporate governance and business law RevisionCards FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW Ethics. .. 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. .. 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