1.5 Distinguish among corporate governance, professional codes of conduct, ethics, and corporate social responsibility.
1) An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Chartered Professional Accountants of Canada.
2) CPAs are required to follow the formal codes of ethical conduct provided by their professional association.
3) Management accountants have important ethical responsibilities that are related to competence, duty of care, objectivity, and professionalism.
4) If a managerial accountant were not keeping up with current developments in managerial accounting, that behaviour might violate the enabling competency guideline of CPA ethical behaviour.
5) Corporate social responsibility (CSR) is the legislated integration of social and environmental
concerns into business decisions.
6) Sustainability accounting focuses on reporting both financial and nonfinancial information on activities that impact society, the environment, and the financial (or, economic) aspects of an organization's performance to an organization's stakeholders.
7) The Global Reporting Initiative has developed and supports several frameworks, however, the most common form of sustainability accounting is the Balanced Scorecard.
8) Corporate social responsibility is
A) legislated by government and enforced by the courts.
B) the same as code of ethics passed by the board of governors of a company.
C) the mandatory integration by companies of social and environmental concerns into their business operation.
D) the voluntary integration by companies of social and environmental concerns into their business operation.
E) codified in international trade agreements.
9) Which of the following would likely constitute a breach of ethics for a management accountant?
A) to omit pertinent information from a report because it is personally unfavourable
B) to consider disclosing confidential information in order to further your own career
C) to consider disclosing confidential information (ie gained from a third party) in order to assist your employer/client
D) to report the unethical actions of another party, with the expectation that this will further your own career
E) to be disruptive in a meeting
10) Corporate governance
A) relates to the role of the corporate governor.
B) comprises activities undertaken to ensure legal compliance with laws.
C) is legislated by the federal government.
D) relates only to the regulations provided by the Canadian Securities Administrators.
E) is a voluntary system of compliance approved by each company's board of directors.