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ETHICS

ETHICS. Dr. ZULKARNAIN BIN MUHAMAD SORI B Acc (UPM), MSc (UPM), PhD (Cardiff) CA(M) DEPARTMENT OF ACCOUNTING AND FINANCE FACULTY OF ECONOMICS & MANAGEMENT UNIVERSITI PUTRA MALAYSIA Tel: 03-89467742 Fax: 03-89486188 E-Mail: zms@putra.upm.edu.my. ETHICS.

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ETHICS

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  1. ETHICS Dr. ZULKARNAIN BIN MUHAMAD SORI B Acc (UPM), MSc (UPM), PhD (Cardiff) CA(M) DEPARTMENT OF ACCOUNTING AND FINANCE FACULTY OF ECONOMICS & MANAGEMENT UNIVERSITI PUTRA MALAYSIA Tel: 03-89467742 Fax: 03-89486188 E-Mail: zms@putra.upm.edu.my

  2. ETHICS • The ethical behaviour of management, accountants and auditors should be in the form of voluntary & • not as a “regulated” activity.

  3. ETHICS Ethical behaviour would enhance firms’ value through efficient management of resources entrusted to the firms.

  4. ETHICS This may be something that the management, shareholders and related parties would like to see, especially if it increases business prosperity in the long term.

  5. ETHICS In modern business environment • ethical behaviour become a set of rules and regulation WHY? massive corporate scandals involving management, accountants and auditors.

  6. ETHICS Ethics is debatable To answer the question of ‘what is right?’ & ‘what is wrong?’ depend on how the issues were argued and justified

  7. ETHICS Mohamad (2005, p. 8) argued, “Ethical behaviour is not inherited but must be instilled and nurtured through systematic training programmes that must be implemented consistently in the most objective way to achieve desired results”.

  8. ETHICS Mohamad (2005, p. 8) argued, “If the society is litigious and there is a fair and affordable judicial system to address these issues, then we can expect the businesses and the markets in general to behave ethically”.

  9. ETHICS Problem with regulation of ethics • box ticking culture • Compliance with standards, rules and regulation is not based on the spirit of regulations but more to avoid regulators sanctions.

  10. ETHICS The Finance Committee on Corporate Governance (FCCG) (1999) acknowledged box-ticking culture when Malaysian PLC are required to comply with many complex rules and regulation.

  11. ETHICS FCCG (1999) stressed the importance of an effective enforcement activities.

  12. ETHICS The then Securities Commission’s Chairman, A-Kadir (1999) => the mechanisms for ensuring compliance and enforcement in Malaysia have been generally deficient and that the penalties for breach are insufficient as a deterrent

  13. ETHICS A-Kadir (1999) =>many of the listings arose from the public flotation of small private companies =>Owners become directors of PLC overnight, & facing various complex common laws and statutory responsibilities, most of which are unfamiliar and may not be fully understood or appreciated

  14. ETHICS Malaysian regulators have made compulsory for the directors of public listed companies to attend ‘Mandatory Accreditation Training Programme’

  15. ETHICS FCCG (1999) indicated that there might be a procedural compliance on rules and regulation instead of giving heed to the spirit of the regulations.

  16. ETHICS • Code of Ethics – Ethical values acceptable to the members of profession. • Protection to the member of profession if they closely comply with it.

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