CIMA East Midlands & East Anglia Conference CIMA CPD in a day – the Global Management Accounting Principles Saturday 12 March 2016 1
Welcome Kevin Bragg CIMA East Midlands Member of Council 2
Management Accounting is... “The sourcing, analysis, communication and use of decision - relevant financial and non-financial information to generate and preserve value for organisations” 3 3 3 www.cgma.org/principles
Management Accounting – an information based discipline VIDEO 4 4 4
Organisations need an effective Management Accounting function to be successful over time... Information for decision making and implementation 5 5 5 www.cgma.org/principles
6 6 6
The end-game: an effective Management Accounting function is needed for organisational success 7 7 7 www.cgma.org/principles
Master of ceremonies David Hyner 8
AGENDA 10.05am MC for the day – David Hyner. 10.15am Managing responsible business and importance of culture – Tanya Barman, CIMA 11.00am Break 11.15am Let your dashboards guide you – Noel Tagoe, CIMA. 12.00pm The accountant as a business advisor – Robin Tidd, CIMA. 12.45pm Lunch 1.45pm SMART goals don’t‘ work. Why top achievers set massive goals -David Hyner. 2.45pm Its time to stop making the right choice: a new mind for better decision making – John Hackett, Franklin Hackett Ltd. 3.30pm Break 3.40pm Speaker panel questions time. 4.20pm Close and thanks. 9
Managing responsible business and importance of culture what role for the finance professional? Tanya Barman, CIMA 10
Ethical performance • Findings from global survey – ethical landscape • Role of finance • Importance of data • The Code
Ethical issues - globally:
Ethical landscape - globally
Managing responsible business findings Organisations are paying more attention to developing and maintaining an ethical culture.
Reputational return “Good reputation allows a company to attract high quality human capital, charge premium prices, create customer loyalty, and expand geographically.” - George Serafeim , Competitiveness and detection of Bribery, Harvard Business School
Endemic deficits Ethical performance findings 2014: Communication deficit: While most organisations have codes of ethics or conduct, over a third do not regularly communicate this to staff. Leadership deficit: There is a need for more senior managers to step up as a force behind embedding an ethical culture. Training deficit: Two in five respondents told us their organisations have not yet created channels, such as training, to raise ethical standards. Ethical performance: The extent to which an organisation’s behaviour aligns with its stated ethical values and commitments.
Leadership: tone from the top “Most people want to go to work and want to do the right thing. Setting the proper tone through aligning stated purpose with the internal operations and procedures of the business is a vital role of good leadership.” - Looking Beyond the Check-Box: Mitigating Risk, Maximising Performance, CIMA and St Paul’s Institute, 2014 www.cimaglobal.com/checkbox
Training: raising ethical standards across the organisation How CGMAs’ organisations create the right ethical culture Four out of ten said their organisation had not created channels such as training to raise ethical standards. Less than half - 46% - deliver anti-corruption training to all employees.
Defining professionalism and its value What does being a professional mean to you? Top five responses: Respondents defined professionalism as performing to high standards, having specialised knowledge – being regarded as an expert – and to be acting ethically and influencing others to do the right thing.
Ethical management information
Ethical management information There is an increasing demand for ethical management information
Ethical management information Businesses aren’t maximising insight from data … UK: 38% collecting of the 25% weren’t collecting - 46% didn’t see benefit
Role of management accountant Professional accountants have an important role to play
Ethical pressures
Common challenges
Fundamental Principles CIMA's code of ethics is made up of five fundamental principles: • Integrity. Being straightforward, honest and truthful in all professional and business relationships. You should not be associated with any information that you believe contains a materially false or misleading statement, or which is misleading by omission. • Objectivity. Not allowing bias, conflict of interest or the influence of other people to override your professional judgement. • Professional competence and due care. An ongoing commitment to your level of professional knowledge and skill. Base this on current developments in practice, legislation and techniques. Those working under your authority must also have the appropriate training and supervision. • Confidentiality. You should not disclose professional information unless you have specific permission or a legal or professional duty to do so. • Professional behaviour. To comply with relevant laws and regulations. You must also avoid any action that could negatively affect the reputation of the profession.
Strengthening of Code ongoing: 100.10 If a professional accountant identifies a breach of any other provision of the Code, the professional accountant shall evaluate the significance of the breach and the impact of the accountant’s ability to comply with the fundamental principles. The accountant shall take whatever actions that may be available, as soon as possible, to satisfactorily address the consequences of the breach. The accountant shall determine whether to report the breach, for example, to those who may have been affected by the breach, a member body, relevant regulator or oversight authority. See summary of 2015 revisions on www.cimaglobal.com/ethics
Revisions to Code : CGMA Code • The CGMA code is aligned with the requirements contained in the 2015 CIMA code of ethics (Part C) and the AICPA code of professional conduct. • Accordingly, CIMA members who hold the CGMA designation and are compliant with the CIMA code will also be in compliance with the CGMA code
Does it pay to be ethical? Selection of 110 most ethical companies: Ethisphere ratings MSCI ACWI captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries*. With 2,477 constituents, the index covers approximately 85% of the global investable equity opportunity set. Ethisphere.com rates on: Corporate Citizenship and Responsibility; Corporate Governance; Innovation that Contributes to the Public Well Being; Industry leadership; Executive Leadership and Tone from the Top; Legal, Regulatory and Reputation Track Record; and Internal Systems and Ethics/ Compliance Program
Opportunities for action Organisations Professionals • • Make it a strategic priority Lead by example and support colleagues to do the same • Set the tone from the top • Help develop, deliver and sustain a • Develop a code of ethics/conduct strong ethical culture. • Develop support and routes to • Help others gain insight and value report suspected violations from the globally applicable CIMA • Engage and communicate and AICPA ethical codes. • Focus on training • Measure effectiveness and revisit regularly
Further resources For further resources including e-tools, videos, podcasts and guidance and the code of ethics see: • CGMA.org • cimaglobal.com/ethics Tanya.barman@cimaglobal.com @CIMATanya
BREAK Light refreshments served. Please return at 11.15am 32
Recommend
More recommend
