Page 25 - Microsoft Word - 00 Prelims.docx

Business ethics

Accountability, social responsibility and

professional scepticism

Accountability

The concept of accountability is that of the professional accountant being responsible
to someone and for something or an action, and being able to explain those actions.
It is an important aspect of the profession and of leadership in the wider business
environment.

It is acknowledged that the professional accountant through CIMA, as a Chartered
Institute, is accountable to the public in performing a public interest duty. That
accountability is monitored by the FRC in the United Kingdom through the Conduct
Committee and the Accounting Council.

Accountability is also to every client and employer too for whom the professional
accountant is providing services. If that accountability fails then the client or employer
can seek redress through complaint or disciplinary procedures.

Social responsibility

The professional accountant has a wider role in fulfilling their public duty, which is to
be aware of their social or corporate responsibility. This is their role within the
community, be it defined as their profession, their firm or place of work, where their
place of work or home is located or howsoever the individual cares to define
community.

Corporate social responsibility (CSR) is the outward manifestation
of an ethical policy.

CSR policies state the nature of the interaction between the company and its
stakeholder base, employees, customers, suppliers and so forth (covered in more
detail in Chapter 5).

In upholding the principles of CIMA’s ‘Code of Ethics’, the individual has a social
responsibility to behave with integrity, courtesy, respect and with due care.

19