CIMA updates accountants' code of ethics
30 Oct 2019
CIMA has revised its code of ethics in response to the challenges of digital businesses and the impact of emerging technologies, effective from 1 January 2020
30 Oct 2019
The code includes a revised conceptual framework to help finance professionals identify, assess and address ethical threats, and ensure that they remain independent and objective when exercising professional judgment.
CIMA has included new material emphasising the importance of capturing and understanding relevant facts and circumstances when exercising professional judgment. It has also strengthened the provisions relating to the preparation and presentation of information to ensure effective governance, and added a new section relating to pressure to breach the profession’s core principles.
There are revised provisions relating to offering and accepting of inducements, including gifts, hospitality and entertainment, to ensure finance professionals exhibit the highest standards of ethical behaviour at all times.
The code also provides greater transparency about when CIMA will take action to enforce breaches, and has a new structure and format based on the International Ethics Standards Board for Accountants’ (IESBA) revised and restructured code.
Andrew Harding, CIMA’s chief executive – management accounting, said: ‘As trusted strategic advisors, management accountants use their skills and competencies to combine financial and non-financial data, translate this information into meaningful and actionable business insights that enable business leaders to make better decisions.
‘This includes a responsibility to act ethically, foster ethical management processes and a duty to act in the public interest. The introduction of the updated code reinforces those values and supports all members to face the professional challenges of our digital world’.
All CIMA members and students are required to comply with the code of ethics and apply its fundamental principles to their working lives. Failure to do so can result in a sanction being enforced against a member or a CIMA student, including financial fines and – in the case of members – expulsion from the profession.
The institute provides a range of resources, including a support guide, videos, e-tools, reports and case studies designed to help members and students understand its code of ethics. There is also a free, confidential helpline and inbox for members and students who may be facing an ethical dilemma and need further advice.