{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Topic 1 - Ethics Expectations-1.pptx - ETHICS EXPECTATIONS...

Info icon This preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon
ETHICS EXPECTATIONS Topic 1 Ethics and Accountability School of Accounting, RMIT University, Melbourne, Chapter 1 – Brooks and Dunn 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
LEARNING OBJECTIVES Describe and understand Ethics framework Corporate governance Ethics of the governing body, workplace and individuals Ethics expectations and ethics risks for accountants Corporate collapses and need to restore credibility and trust 2
Image of page 2
ETHICS, GOVERNANCE AND ACCOUNTABILITY Ethics is about Choices: assessing alternatives, making the ‘right’ decision and acting on it in accordance with the decision, with courage 3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Ethics is also about standards/rules, written and unwritten, concerning issues of right and wrong, that prescribe what people ought to do Ethics encompasses individuals, groups, organisations and society Business ethics – right and wrong in business 4
Image of page 4
Governance conveys authority & control - Corporate Governance relates to strategies, directions, methods and manners adopted by a group of people such as the CEO, the board etc. Accountability is to the various stakeholders such as the shareholders, employees,the community 5
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FIGURE 1.1 AP OF CORPORATE STAKEHOLDER ACCOUNTABILITY Shareholders Activists Governments Lenders & Creditors Competitors Suppliers Customers Employees Corporation Others, including the Media, who can be affected by or who can affect the achievement of the corporation’s objectives
Image of page 6
Traditional focus: the ability to maximise shareholders’ value More recent focus: board composition; independence of directors/auditors; accountability to stakeholders; financial reporting disclosure etc. 7
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
THE ETHICS FRAMEWORK FOR BUSINESSES Three forces: the market (the environment), the business entity and the regulatory regime There are interactive relationships between the three forces and within each of these forces 8
Image of page 8
The market: competition, resources, opportunities and threats The entity: a going concern in the interest of owners & stakeholders Regulatory regimes: compliance, support and oversight functions 9
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Three levels of ethics framework Governing body (management) Workplace Individual employees 10
Image of page 10
Governing body - board of directors, senior executives and various committee Role of governing body is: Formulation of goals, strategies and overall direction Implementation of policies, procedures, protocols and culture 11
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The ethics of the governing body : Provide and facilitate good corporate governance practices Management of stakeholders’ interests Meeting conformance and performance drivers 12
Image of page 12
Workplace ethics Influenced by the governing body Implementation of governance policies and procedures Monitoring of “soft issues” – workplace practices, norms and cultures 13
Image of page 13

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Individual ethics Influenced by cultures & values established by the governing body and the workplace An individual’s ethical behaviour is made up of four interrelated components 14
Image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern