Managing Responsible Business - CIMA
Managingresponsible business
ContentsForeword from the Chartered Institute of Management Accountants (CIMA) . . . . . . . . . . . . . . . . . . . . . . . . . 2Foreword from the Institute of Business Ethics (IBE). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62. Survey results and discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.1 The challenge for business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.2 Prioritising issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3 In focus: the environmental imperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.4 Managing business ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.5 Involving the finance team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.6 Experiencing ethical conflict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224. Research methodology and demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256. Appendix – definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26About CIMA and the IBE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Managing responsible business 1
Foreword from CIMACIMA is very pleased to have teamed up with theInstitute of Business Ethics to bring you the resultsof this survey. We are committed to contributing tothe debate on corporate responsibility and businessethics, and are particularly excited to be playingan important role: tapping into global trends andtranslating them into the latest thinking on businessethics management. This research forms part of ourresponsible business programme, which covers anumber of ethics and corporate responsibility outputs.In this study, 1300 finance professionals told us howthey are involved in managing their organisation’sethical performance. 84% said that business has amoral obligation to help address global issues such asclimate change and poverty, and over half report that‘environmental impact’ is more important to theircompany now than it was two to three years ago.If there is a global trend towards the increasingimportance of business ethics and corporateresponsibility then there are encouraging signs thatorganisations are beginning to tackle these issues.However, there also appears to be a lack of practicalaction taking place, with only one third of theorganisations surveyed publicly reporting on ethicalperformance or CR. Even fewer (30%) actively collectethical management information, despite nearly halfof those who fail to do so thinking their organisationwould benefit from it.2 Managing responsible businessFinance professionals have a growing role to playin managing ethical performance. Over half (59%)contribute to managing their organisation’s ethicalperformance, and 73% believe that it will be a part oftheir role in the next few years. Many contribute bydemonstrating high professional standards: ‘upholdingtheir professional code of ethics’, ‘ensuring theintegrity of management information’ and ‘leadingby example’. Only 16% believe they contribute viathe analysis or collection of ethical managementinformation, with even fewer (15%) saying theycontribute by reporting ethical performance againsttheir goals.These survey results represent a welcome first stepin the process of pushing ethical business issueshigher up the agenda. While it is heartening to notethat management accountants across the worldhave grasped the bigger picture when it comes torealising the importance of business ethics issues,it is also clear that this area needs to be embeddedin organisational strategy and reported on morethoroughly. Responsible, sustainable business is anarea that management accountants are well placed todrive forward and continue to influence. CIMA looksforward to leading the way in supporting them as theytake on this challenge.Charles TilleyChief ExecutiveChartered Institute of Management Accountantswww.cimaglobal.com
Foreword from the Institute of Business EthicsThe Institute of Business Ethics (IBE) is delightedto have worked with CIMA in designing andanalysing a survey to explore how managementaccountants contribute to their organisation’s ethicalperformance. The IBE has worked with CIMA on anumber of projects, most notably in assisting withthe development of the ethics syllabus for the CIMACertificate in Business Accounting.Ethics is increasingly being acknowledged as animportant aspect of business practice. Organisationsthat take ethics seriously also tend to take theirreputation, their governance, and ultimately theirbusiness seriously. In today’s world, shareholders andstakeholders have high expectations of organisations;they expect them to be run to high ethical standards.For the IBE, this survey is important as it identifieshow businesses are responding to the increasingattention to high standards of business conduct andwhat this means for the finance function.CIMA’s own professional code of ethics demands thatits members act with integrity. It is clear from thissurvey, that they have a strong sense of their ownethical responsibilities, both as finance professionals,and as employees of organisations. In leading byexample, CIMA members contribute to the ethicalculture of the organisations in which they work.At a time when the business climate is becomingdifficult, doing business ethically may become moreof a challenge. However, IBE research has indicatedthat companies which are explicit about their ethicalvalues may find that they are the ones who ride aneconomic downturn best.Philippa Foster Back OBEDirectorInstitute of Business Ethicswww.ibe.org.ukThe results of the survey set out in this report, underthe authorship and editorial control of CIMA, make forinteresting reading. In particular, it is encouraging thatnearly nine out of ten CIMA members said that theirsenior management are taking ethical issues seriously.It is clear that management accountants and otherfinance professionals play a vital role in supportingthis management commitment and upholding theintegrity of their organisations. The importance ofthis role will increase as more organisations seeknot only to act ethically, but to prove that they are,to both internal and external audiences. The skillsof finance professionals in collecting and analysingmanagement information can contribute to managingnon-financial performance and so assist in providingthe assurance that organisations are living up to theethical standards they set for themselves.Managing responsible business 3
Executive summaryIn March 2008 CIMA, together with the Institute ofBusiness Ethics (IBE), surveyed finance professionalsabout their attitudes to ethical standards. 1300responses were received (7.8%). 51% are based in theUK, and 70% work in the private sector.84% of finance professionals believe business has amoral imperative to help address global issues, butcompanies are not doing enough. They are tacklingethical issues on a superficial level but are failing tostrategically manage their ethical performance. Whenbusiness ethics is not properly managed it can haveserious impacts on the bottom line. This study showsthat companies may not be prepared for the growingimportance of emerging issues such as environmentalimpact and work/home balance.CIMA believes that businesses need to move onfrom an operational, check-box approach. They needto consider ethical performance at the strategiclevel, integrating it into the way they do business.Companies need to stop seeing business ethics asan add-on and instead embed it into core businessprocesses.Finance professionals also need to be aware thatmanaging ethical performance is going to becomemore important to their role. While many areindirectly contributing to business ethics in theirorganisation, their potential direct contribution isbeing overlooked. They are in a position to add valueto companies by contributing to managing ethicalaspects of performance, but their skills are not beingused effectively.Managing performance against ethical goals willbecome an increasing part of finance professionals’roles. Companies need to change the way they trainand incentivise their finance teams so that their skillscan be harnessed to help collect, analyse and reporton ethical management information.We believe that to move forward, steps need tobe identified that will help companies achieve trueintegration of ethical concerns and opportunities intothe way they do business. Organisations need clearrecommendations on how to implement practicalactions to back up their ethical codes. CIMA willcontinue its work on responsible business in 2009 andbeyond, leading the way in taking this area forward.Results at a glance 84% believe business has a moral imperative to help address global issues.Companies still tend to address ethical issues on a superficial level.‘Safety and security’ and ‘security of information’ are considered the most important ethical issues.New issues such as environmental responsibility and work/home balance are receiving more attention.Finance professionals are becoming more involved in ethical performance management.A key role for CIMA members is to ensure the integrity of management information.Three out of ten respondents have experienced pressures to compromise ethical standards.1300 responses were received globally4 Managing responsible business
What is business ethics?Business ethics is the application of values – such as honesty, integrity and fairness – to businessbehaviour. It is about how a company does business, rather than what it does. It applies to any or allaspects of business conduct, from boardroom strategies to sales and marketing techniques; accountingpractices to treatment of suppliers and customers.Standards of business ethics are usually set out in an organisational code of ethics or conduct. This cancover such diverse elements as treatment of suppliers, anti-competitive practices, bribery and corruption,environmental pollution, product safety and impact on local communities.A commitment to high standards of business ethics involves the management of non-financial aspects ofperformance. This can encompass what is talked about as corporate social responsibility (CSR), corporateresponsibility (CR) or corporate citizenship. While opinion is divided as to whether these terms all meanthe same thing, they all have in common that they are about organisations taking responsibility for theway they conduct their business and the impact of their operations, beyond a concern for the financialbottom line.Managing responsible business 5
1 IntroductionCIMA, in association with the IBE, carried out surveyresearch to explore how management accountantscontribute to their organisation’s ethical performance. Wewanted to find out what steps companies are taking tomanage their performance against ethical goals, and toexplore the role of the finance function in supporting this.The purpose of this research was to identify howbusinesses are responding to ethical challenges andwhat this means for the finance function. It looks atthe contribution accountants currently make to theirorganisation’s management of ethical performance,and asks whether this role is likely to develop. It alsoexplores what the most important ethical issues arefor companies today and how these will change overthe next few years.Companies are increasingly trying to demonstratethat they do business responsibly. More and more areadopting codes of ethics (or similar documents), anda growing number report publicly on their corporateresponsibility. A recent IBE survey showed that 71% ofcompanies with an ethics policy now provide trainingon its application, while other IBE research indicatesthat those who seek to embed their codes in this wayfinancially outperform those that do not1. A loss oftrust between a business and any of its stakeholders(such as employees, customers, investors, suppliersor civil society) impacts negatively on businessperformance. Conversely, in a time of reducedeconomic activity, a reputation for integrity may helpmaintain the loyalty of staff and customers.We examine whether companies are using the skillsfinance professionals have in collecting and analysingmanagement information to help manage ethicalperformance and meet ethical commitments. Iftheir skills are not being used in this way, do financeprofessionals have a different part to play?Although the importance of an ethical culture anda responsible reputation is being recognised, we stillhear in the media of organisations being criticizedbecause of ethical failings. Whether it is accusationsof high-risk trading strategies by banks, extractivecompanies accused of environmental degradation orallegations of slave labour in the factories supplyingWestern supermarkets with clothes and toys, almostevery sector has been touched by ethical scandal.The results of this survey have wide implications.Companies will need to consider whether they areadequately managing their ethical performance,and whether they are able to assure their boardsof this. They will also need to decide whether thefinance function is contributing sufficiently to ethicalmanagement processes.There are implications for those responsible foreducating management accountants, too. Theywill need to consider whether they are adequatelyequipping them to contribute to the ethical cultureand performance of a company. CIMA is alreadyleading the way in educating finance professionals inbusiness ethics: it is a fundamental element of theCIMA syllabus and an important part of continuingprofessional development.Note: the charts may not add up to 100% due to‘data roundings’ during analysis.6 Managing responsible business
2 Survey results and discussion2.1 The challenge for businessMany organisations are addressing their ethicalresponsibility by adopting a code of ethics. 72% havea code of ethics or similar statement of businessvalues, showing that they recognise the importanceof responsible business practice. The number puttingcodes in place has been steadily increasing: researchinto UK companies in 20052 found that 65% ofworkplaces had one. It is a shrinking minority thathave yet to see the importance of guidance for theirstaff on ethical matters.the need for a code, far fewer are doing anythingto embed it (see Fig 1). A gap exists between whatbusinesses are saying and what they are actuallydoing to bring their ethical values to life.Despite the increasing number of codes and policies,many organisations remain exposed to ethicalrisk because they are not backing up their writtenstatements with action. Only 46% of those in thissurvey provide ethics training, and fewer than onein five offer incentives to staff for upholding ethicalstandards. While many organisations have recognisedRespondents are noticing their organisations’ failure toreinforce ethical values. Almost four out of ten (38%)agree or strongly agree that ethical standards arenot fully monitored or evaluated in their workplace.Companies that adopt business principles withoutembedding them risk damaging their credibility in theeyes of employees.The IBE suggests that, in addition to training, codesneed to be backed up by other initiatives to supportan ethical culture, such as exemplary leadership,awareness raising, speak-up mechanisms, incentivesand ethical assurance programmes.Figure 1 Ethics advice/services providedDoes your organisation provide?A statement of its ethical values, business principlesor commitments to its stakeholders?7A code of ethics or similar document to guide staffabout ethical standards in their work?5Training on ethical standards at work?7223729A hotline for reporting conduct that violates theorganisation’s standards of ethics?468A helpline where you can get advice or informationabout behaving ethically at work?465311Incentives for staff to uphold the organisation’sstandards of ethical conduct?405535130Base: All respondents (1300)2110682030Don’t know4050No6070801990100%YesManaging responsible business 7
2 Survey results and discussion2.2 Prioritising issuesand 4.48 respectively. Around half of respondents(51% and 49%) think these are more important nowthan they were a few years ago and many (51% and41%) expect them to become even more important inthe next few years.So what are the key areas that companies shouldbe taking action on? ‘Security of information’ and‘safety and security’ are considered to be the mostimportant, and will remain so in the future. On ascale where 1 is ‘not at all important’ and 5 is ‘veryimportant’, these issues received mean scores of 4.52Figure 2 Importance of ethical issues to UK finance professionalsCurrently, how important are the following ethical issues to your organisation?Which ethical issues are significant to your organisation? (IBE survey 20073)Mean scores5100%90807060504030201004321err a t ioO thsl ic i en poe is sl a ncFairnessof remun ee bahomtingarkele mn si bWork//adver tisiue sngesightsan rRespoHumn fl icg coa ginMa nis s utts of in te re so u rcis s uh a inp ly cSupr it ySecuon,Discr i mina t ies/sof informe ntssmha r ain gna t iongor bp ea kng /slow is t le bW hit a t ioacilind fon au ptico r rB r iber y,ul lyiupingnt symen paim pnt a lnmeEnviroSafety and se curit yac t0Mean scores where 1 is not at all important and5 is very importantOur results 250 employees251 – 5000 employees5000 employeesPercentage scores from IBE survey 2007Please note: mean scores are from current survey and percentage scores are from IBE ‘Use of Codes of Ethics in Business’ survey 2007based on 200 responses from CEO or person responsible for business ethics function in FTSE 350 companies which were also known tohave a policy or code.Base: All headquartered in UK (544)8 Managing responsible business
This trend is possibly a reflection of the heightenedperception of the threat of terrorism which has beena feature of recent times. This receives a high profilein the media, pushing issues of personal safety tothe fore. Advances in technology and fears for globalsecurity also mean that more information is stored,and that it is of a more sensitive nature, than everbefore.Security of information is more important to UKfinance professionals than it is to the companies inthe FTSE3504 (see Fig 2). While these companiesalso believe that ‘safety and security’ is the mostimportant issue, they do not rate ‘security ofinformation’ as highly as other issues includingenv
Managing responsible business 5 What is business ethics? Business ethics is the application of values – such as honesty, integrity and fairness – to business behaviour. It is about how a company does business, rather than what it does. It applies to any or all
(CBA) where you must score 50% to pass each paper. All CBAs are set and controlled by CIMA and can be sat at BPP’s training centre in Bucharest. The regulations for and the contents of the assessments are strictly controlled by CIMA. You must have a CIMA ID before booking a CBA. BPP Romania is a CIMA CBA approved centre.
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business and financial management. On average, CIMA members are earning just under 67,000 per annum while CIMA fellows are . salary. Management accountants typically earn 35,000 and financial analysts/business analysts 39,000 per annum on average, including bonus. However, many are already
Advanced Management Accounting CIMA (P2) The best things in life are free To benefit from these notes you must watch the free lectures on the OpenTuition website in which we explain and expand on the topics covered. In addition question practice is vital!! You must obtain a current edition of a Revision / Exam Kit - the CIMA approved publisher is Kaplan. It contains a great number of exam .
CIMA Botswana part qualified salary survey 2010. CIMA salary survey 2010 – Botswana Executive summary 1 Main findings 3 Salaries and bonuses 3 Sector 3 Job role 3 Future 3 Recruitment and retention 4 Satisfaction with salary and benefits 4 Benefits received 4 Importance of benefits 5
CIMA salary survey 2010 – Zambia Executive summary 1 Main findings 3 Salaries and bonuses 3 Sector 3 . alongside Botswana, Zambia rated the highest expectations for some benefits. Amongst . Data collection for the CIMA Global Part Qualified Salary Survey 2010 was carried out .
The P3 exam blueprint 10 For the first time, under the updated 2019 CIMA Professional Qualification, CIMA is publishing examination blueprints based on the syllabus which set out in detail what is examinable in each of th
Unit 2 Phonics and reading 1.Choose the picture that matches the vowel team word CSK 2.Complete the vowel team words E68 3.Complete the word with the correct vowel team HTK 4.Choose the vowel team sentence that matches the picture DJD 5.Choose the r-control word that matches the picture VVD 6.Complete the word with the correct r-controlled vowel: ar, er, ir, or, ur PLR 7.Complete the word with .
