Está en la página 1de 2

2/7/2014

C05: Business for the long term CIMA and professionalism

C05: Business for the long term CIMA and professionalism


August 2013
C05 (fundamentals of ethics, corporate governance and business law) requires you to demonstrate an understanding of the CIMA code of ethics. This includes ethics in business, ethical conflict resolution, corporate governance and with the globalisation of business having an overview of alternative legal systems. You must also maintain your professionalism by staying informed on new developments and initiatives. Post-2008 responsible business in a new light The past few years have seen the costs of acting unethically, with a spate of business failures, high public distrust and now increasingly public protest against corporate and government misdemeanours. Global examples include LIBOR fixing in the UK banking system, the collapse of the garment factory Rana Plaza in Bangladesh, the horse meat scandal in Europe, and the Olympus whistle-blowing story in Japan. If anything positive came out of the financial crisis of 2008, it may be the increased attention shown by companies to responsible business. Businesses that want to succeed in the long term have to reflect on challenges in their own operations and external factors, and take action to remedy any problems. Increasingly, businesses are realising the value of embedding wider ethical considerations into strategy and performance measurements. In recent years we have seen the emergence of non-financial reporting frameworks such as the IIRCs Integrated reporting framework and the GRI - and the growing attention to the stakeholder and importance of citizenship and corporate governance. Taking one step further, well known brands such as Unilever have fully embraced the sustainability agenda with their sustainable living plan. Niche clothing producers Patagonia have urged consumers to consume less in their common threats campaign. Smaller firms such as Sri Lankas Brandix have made ethical manufacturing a central part of their strategy and have grown to be a major clothing exporter and sustainability innovator. We have also seen the birth of the Ruggie Principles, a framework of guiding principles developed by the United Nations to help businesses uphold human rights and establish the responsibilities of businesses and the state. Some countries, such as India, have even made sustainability reporting mandatory for large listed companies. Most recently a new directive by the EU takes a report or explain approach where, if a company does not report on their sustainability measures, they will need to provide a good explanation why not. Importance of trust and transparency Reports confirm that trust in business, and the finance industry in particular, is at a low point. A recent survey by the IBE showed that only 48% of respondents think that British businesses behave ethically. AUS survey from 2012 shows that globally only 46% of people surveyed trust the financial services industry. Reporting publicly on non-financials and addressing global issues such as climate change and human rights does not only impact on the bottom line. It also allows organisations to show their commitment to conducting business in a transparent manner in order to uphold or restore public trust. Highlighting the importance of maintaining an organisations reputation, Warren Buffett famously said: Lose money for the firm and I will be understanding. Lose a shred of reputation for the firm and I will be ruthless. Think it over: you wouldnt choose a doctor or lawyer that you didnt trust, would you? Once trust is lost, it takes a long time to re-build. This may also be reflected in finance through the loss of customers and business. Your professionalism and the CIMA code of ethics
http://www.cimaglobal.com/Students/Student-e-magazine/Velocity-August-2013/C05-Business-for-the-long-term--CIMA-and-professionalism/ 1/2

2/7/2014

C05: Business for the long term CIMA and professionalism

Being ethical is a core part of being a professional, be that chartered in the UK, or in other professions globally. The ethical aspect of the CIMA qualification and membership is what sets professionally qualified individuals apart. To be ethical you need a framework and guidance a code. The CIMA code of ethics is based on the IFAC handbook of the code of ethics for professional accountants. A global organisation for the accountancy profession, IFAC ensures that CIMA and other professional accounting bodies maintain the highest professional standards. All CIMA members and registered students are bound by the code, which is based on five fundamental principles: integrity objectivity professional competence and due care confidentiality professional behaviour

The code helps identify common areas where ethical pressures may exist, and the sort of pressures which may compromise independent and sound decision-making. It also contains potential threats and safeguards to the finance professionals practice, and a framework for ethical decision-making. It is there to help you act with the utmost integrity, objectivity and professionalism throughout your studies and working life.

Couldn't load plug-in.

http://www.cimaglobal.com/Students/Student-e-magazine/Velocity-August-2013/C05-Business-for-the-long-term--CIMA-and-professionalism/

2/2

También podría gustarte