Ethics and Corporate Governance - Index

8/10/2019 Ethics and Corporate Governance - Index

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Ethics and Corporate Governance

Module 1: Accounting and Society Page #

Part A: Interaction with Society /Accounting in SocietyRecruiting the Best (Add value, Lifelong and Professiona capabilities) 1Depiction of Accounting (Stereotype of Accounting Dimik&Felton) 1 Coate: +Prudence (Social skills), - Colourful Accountant(Downside of Service ideal) 1

Moral Agency (Ethical Approaches to achieve outcomes) 1

Technical Functions and Social Impact 1 1.- Understanding Accounting (Social practice: Professional capabilities + Service ideal)TSKE/SSKE 1

2.- Social Impact: Less Prescriptive more judgments) Lonegan: GFC 1 9

3.- Theoretycal Analysis of Social Impact 1 1

Body of Knowledge: Parkers & Millers 1 1

Macro Level ( Business & goverments - Power and control) 1 1

Micro Level (Manager & Employee - Motivation and Behaviour) 1 1

Capabilities Considerations (Sufficient capabilities=complex&difficult professional Judgements) 1TSKE: General Accounting Activities 1 1

SSKE: Social Skills & Capabilities well developed 1

Both vital : Lifelong learning for both activities. 1 1

Accounting roles, Activities & Relationship 1

PAIB: Professional Accounting in Business 1

IFAC-PAIB, value adding, Value creation,. 1

Contemporary role/Main activities of a Professional Accountant. 1

1. Accountants employed in Large Business (Strategy development & implementation) 1

2. Public Practice: Accounting Firm Environment-Big 4, Large 7 second tier firms) 1

3. SME's ( very small SME's relying in SMP's practice. Large firms :few or one Accountant) 1 1

IFAC: SME'S focus on compliance, not being much value in performance(profitability) 1

PAIB: Accountans reponsible to generate value for the success of company. 1

Ethics ( Moral, Ethics, Business Ethics, Professional Ethics; APES 110, Guidelines &rules) 1 2Accounting and Effective Governance 1

Accounting: OECD 2004, Social practice. 1 2

Corporate Governance: IFAC-Performance + Conformance 1 2

Part B: Accountants as a member of a profession.Trust and Profession: Integrity, Autonomy, Professional Judgement 1Atributte of a Profession: Autonomy and Service Ideal 1

A systematic Body of Theory and Knowledge 1

An Extensive Education Process 1 3An Ideal Service to the Community 1

A High degree of Autonomy and Independence (Objectivity and integrity) 1

A code of Ethics for members (APES 110, AASB, AUASB, Corporate Law) 1

A Distintictive ethos or culture ( CPA) 1

Application of Professional Judgement (Schon 1988) 1

The Existence of Governing Body (CPA membership) 1

Professions: The 'market control' view (Monopolistic Power, Self Regulation (West 2003) 1Evolution of the profession

Professionalisation: Larson - Power creation

Power and Exclusion: (Ethics Vs Profit - Gold Collarism, Kelley 1985) 3

Ideals of Accounting: E's Education, Ethics, expertise and Entrepreneuship

Accoutnting Under ChallengeCredibility of the profession: Ethics & Failure: GFC failure-Manage Risk & underdtanding Accounting valuation 4

Greater Regulation: AASB, Asic, FRC reporting, and Corporation

Restoring Credibility to accounting: IFAC 2009 Recomendations, Sarbanes Oxly 2002, Coso 2004, CLERP 9, CPA,)

Reading 1.1: How softskills can boost your career

Reading 1.2: The strategic accountant

Reading 1.3: Public practice: firm of the future

Reading 1.4: Profile: Roel Van Vegel -The sweet sounds of success

Questions: 1.1 Recall Lonergan' GFC failured, Was that slow reaction the only cause of GFC?

Questions: 1.2 Outline 4 possibles accountig-related roles with an SME and for each role indentify the task to be undertaken?

Questions: 1.3 Reading 1.4. Is that busienss ME or an SME? How did the PAIB add value to Andrew Rueu's business?

Questions: 1.4 Why have SME's not relied in the past on theirexternal accoutnants for business asvisory?


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Questions: 1.5 Discuss 4 situations where accountants may aplly professional judgements in their course of work?

Module 2: Ethics Page #

Part A: Professional ethics 2Apply the concepts of service ideal 2

The well-being of society 2

The pursuit of excellence ( Professional Behaviour) 2

Community service (Relationship of trust) 2

A code of ethics for professional accountants 2The conceptual framework (principles-based) approach (APESB : blended code of Principles and rules) 2

Threats 2

Examples of threats 2

Safeguards (Institutionals & In the work Environement) 2

The public interest - an introduction to the code(Accountat primary loyalty is with the public - not client/employer) 2

Fundamental principles of professional conduct 2

Integrity (Straigforward, honest - Financial information) 2

Objectivity(Impartial, honest, free from conflict of interest) 2

Professional independence to the provision (Independence=Objectivity + Integrity)

Independance of mind (reality ) and appereance(more desvastating, Lack of indepen)

of assurance service 2

Common threats to independence (Examples) 2

Professional independence in practice (s290-291) 2

Provision of non-audit service to an audit client (S290) - Additonal value for an Audit Client) 2

Professional competence and due care 2

Confidentiality 2

Professional behaviour 2

Code of ethics for members in public practice 2 2Professional appointment (acceptance should no be granted automately - Solic itation) 2 3

Referrals (special assigment) 2

Conflicts of interest 2

Incompatible activities (self interest threat) 2

Conflicts between two or more clients (members must not provide services unless consent to do it is received) 2

Second opinions (seek permission from clients) 2

Fees and other types of remuneration 2

Professional fees (billing arrangements) 2

Contingent and referral fees (Actions of transactions/Result of services) 2 3

Commissions and soft-dollar benefits 2

( Inconsitent with CPA - Professionalims, Fees for commissions: Self interest threat to objectivity)

Marketing professional services (Consistency with Professional Behaviour) 2

Code of ethics for members in business 2Potential conflicts (Undertake task inconsistent with professional duties) 2

Preparation and reporting of information and earnings management(Revenue Recognition, Greed) 2 3

Reporting with integrity (Public Interest - trust) 2

Professional And ethical failures by menbers/public practice - Sonya Denisse & Trevor Neil) 2

Financial interests (Threats and Safeguards) 2

Gifts, hospitality and inducements 2

Self-regulation and professional discipline 2The profession's self-regulatory process 2

Accounting professional and ethical standards board (APESB) (high level of Professional Practice) 2

Roles of APESB 2

The quality assurance process (Components: Standard setting, Conformity withstadards, preactice review, Firm regulations) 2

APES 320 Quality control for firms 2

Policies and procedures for address each element 2Professional discipline (To achieve credibility & confidence of the general Public / Sources of complaint, CPA) 2

Procedures 2

Penalties and appeals 2


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Part B: A conceptual framework for ethical behaviour Theoretical approach to ethics 2

A concept map 2

Normative theory - 2 key functions: 2 4

(Framework for judging moral righteness and framework decision making to resolve Ethical problems)

Teleological theories (consequential) 2

Ethical egoism 2

Differences between psychological egoism, ethical egoism (table 2.5) 2 5

and utilitarianism 2Utilitarianism 2

Five basic steps 2

Limitation of consequential and utilitarian analysis 2

Dentological theories (Duties) 2

Rights theory 2

Justice theory (Aristoteles) 2

A philisophical model of ethical decision-making (Mathison 1988) 2 5

Aplication of multiples theories to unethical dilemma 5

Virtue ethics 2

An introduction to professional and ethical judgment 2Kohlberg's theory of cognitive moral reasoning and development 2

Six stages of cognitive moral development 2

Level 1: Pre-conventional 2

Level 2: Conventional 2

Level 3: Post-conventional 2 6Levels of moral reasoning in accounting 2

Factors influencing decision-making 2Individual (Cognitive development) - Kholbers theory 2

Organisational ( organisational culture, Code of ethics, Others significants) 2 6

Schein's six primary mechanisms(Leader rely on this, can achieve cultural success, cultural failure, cultural change) 2

Stress in the workplace 2 6

Professional (APESB) 2 6

Societal 2

Law and regulation 2 6

Culture (Confucionism: Japan, China), Relativism 2 6

Ethical decision-making models (Influences on an Individual Decision) - HEURISTIC 2American Accounting Association Model (AAA) - Lagender & Rockness 2

Seven steps model 2 7

AICPA Decision Tree 2 7

Reading 2.1 Accountants, Ethical issues and the Corporate Governance text?

Reading 2.2 Six cures forcurrent Ethical Breakdowns

Reading 2.3 Ethics Decision tree fro CPAs in business and industry

Questions: 2.1 Consider Implications of an accountant with isufficient time to perform duties? What should you do?

Questions: 2.2 Your firm executes investment transactions for a client. You are now asked to audit this client, I s there a threat to yur independence?

Questions: 2.3 A new qualified CPA is asked to perform an audit to small company, The accountant has not experience in that field, What should you do?

Questions: 2.4 You have been asked to audti 1/2 year finanical statement, (second opninion?

Questions: 2.5 You mamage fundraisng company, Soft dollar benefits?

Questions: 2.6 New assurance Services without previuos experience, Does this complain with the Code of Ethics?

Questions: 2.7 Explain why integrity is an essential attributer of the profession

Questions: 2.8 Quality assurance and ethical issues arising from?

Questions: 2.9 Utiliarims definitions, problems and difffences?

Questions: 2.10 Does you employee have a right to enquiie into activitiess of your personal life? In realtion of rights theory?

Questions: 2.11 Which Stage of Kholbert theory of CMD best describe the decision making behaviour of Accountants


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Module 3: Governance Page #

Part A: Overview of Corporate Governance ( Information and Comunication) 3

Why Good Corporate Goverance matters (balancing power of stakeholders = Performance + conformance) 3

Global Imperative ( Professional Accountants role : A+B) 3

Key Factors driving the need for better Corporate Governance 3

Why Corporate Governance is important to APEC economies( valuable source on international views) 3

Key Points / Benefits of Good Governance 3

Goverance and APEC views 3

Governance Definintions / Governance Involves 3Agency and Governance ( Agents must be aware of concepts and principles of good Corporate Governance) 3

Components of Corporate Governance 3

Shareholders ( Bosch -1995) rights and Obligations 3

Individual Shareholders ( ASA , Media an Internet) 3

Institutionals Shareholders (Insurance companies/ funds ) (Hampel Report, now reflected in UK CGC) 3 1

Directors and Boards 3 1

Board of Directors (Bosh Report in Australia, Rogers CJ ( AWA Ltd) 3 1

Board Chair - Independence( OECD: chair not mention should be Indep.. / UK CGC should be indep..) 3

Role of CEO - Agent of the Board ( Board member and CEO/ Agency relationship arise) 3 1

Type of Directors (Independent & non Independent Directors) 3

Committees of the Board 3

Risk Management, Nomination, Remuneration andAudit Committee 3 2

Audit Committee:( AASB: Objectives ans Resposabilitites, Benefists and limitations) 3

Risk Management 3

Internal Control and Risk Management: ISA 215-Ifac2009, Sarbanex Oxley Act US 2002) 3

COSO internal Control - Integrated Framework 3

Internal Control and Risk systems - Including accounting , Risk Control and internal audit

Management of the performance elements ( Practical aproaches to exercise considerable judgements) 3

Balance Scorecards: Kaplan and Norton 3

Strategic Scorecards: PAIB - IFAC, CIMA'S obejectives 3

Economic value added - EVA- ROI 3

Internal and External Auditors 2

Regulators : Essential to ensure that companies can compete against each other in a fair an reasonable manner) 3

* Regulations versus De Regulations (Free market (self interest- Miltond Friedman) 3

Principle based ( OCED, ASX CGC and UK FRC) versus rules -based regulations ( US Sarbanes - Oxley Act)

Senior Managers and employees generally 3

Other stakeholders ( Governements, Customer, suppliers, environement and Societies generally) 3

Thirty years of Corporate Goverance 3

International Development Timetables 3United Kingdom

Cadbury report (1992) ( Concept of Comply or Explan / If not, Why not reporting) 3

Financial aspects of corporate governance (1992) 3

Principal recommendations of the board 3

Non-executive vs independence directors 3

Strategic role of the board 3

Greenbury Committee 3

Enhanced transparency on directors' remunerations 3

Hampel committee 3

Importance of corporate governance 3

The combined code and the turnbull guidance 3

Combined code of 18 principles and 48 code provisions 3

Number of non-executive directors 3

Higgs review and smith report 3

Composition of the board and sub-committee 3UK combined code on corporate governance (FRC 2008) 3

United States

Committee of sponsoring organisations of threadway commission (COSO) 3

(Report realted to Internal control and Enterprise risk management) 3

Internal control - integrated framework 3

Fradulent financial reporting 3

Enterprise risk management 3

Sarbanes-Oxley act ( Strenghtened Audit requirements, increase financial disclosures, Internal controls) 3

Audit reform 3

Corporate accountability 3

Financial disclosures,loans and code of ethics 3

Criminal fraud and whistleblowing 3

The business roundtable 3

Eight guiding principles of corporate governance 3

California public empliyees retirement system (CalPERS) 3Corporate governance investment program 3

Other International Approaches 3


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Australia

Bosch committee (1995) 3

Significant corporate governance issues 3

Ramsay report (2001) 3

Key recommendations on independence of auditors 3

ASX corporate governance principles and recommendations (2007) 3

Eight Principles and recommendations 3

Corporate Law Economic Reform (CLERP) 9 Act (2004) 3

Audit reform 3Financial reporting 3

Other (Whistleblowing, shareholder participation) 3


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Governance in other sectors 3

Corporate governance in not-for-profit sector 3

Corporate governance for SMEs 3

Public Sector ( Upright Report: Government entitites examination) 4

Codes and Guidance

OECD principles of corporate governance 3

Six principles of corporate governance 3

Basis for effective corporate governance framework 3

Rights of shareholders and key ownership functions 3Equitable treatment of shareholders 3

Role of stakeholders in corporate governance 3 4

Disclosure and transparency 3 4

Other principles regarding disclosure/transparency 3

Responsibilities of the board 3 5

GFC Response: Understanding The OECD Principles 5

Steering Group: Complementary of OECD principles 5

UK Finanancial Reporting Council Corporate Governance Code (Apendix 3.1) last part of material mod.4 5

Main Principle: Comply or explain

Section A: Leadership (Roles of Board, Divison of Resposabilitites, chairman, non Executives directors)

Section D: Remuneration (Components of remuneration, Procedures)Section E: Realtion with Shareholders( Dialogue, Constructive use AGM)

ASX CGC Recommendations (if not why not reporting requirement)

Lay solid foundations for management and Oversight

Structure the board to add value

promote Ethical and responsible decision making (code ofconduct)

Safeguard Integrity in Financial Reporting (Audit committee)

Make timely and balanced disclosure

Respect right of Shareholders

Recognise and manage risk

Remunerate fairly and Responsibly - Remuneration Committee

Code for Institutional Investors ( ways for instituional Shs views to performance)

The UK FRC Stewardship Code ( disclosure of voting activities) 3 6

The Blue Book : Guide for fund managers and Corporations 2009 - important for FSC) 3 6

Part C: International Perspective on Corporate Goveranance

Alternative System of Goverance 3 6Market Based System (outsider system, Shareholder systems or Anglo Saxon System) 3 6

Corporate Goverance of US and UK (Shareholders primary focus) 3 6

CEO/Chair same - Principal agent realtionship

Focus in Funds and Insurance company, less in banks ( Disclosures based) 6

Realtionship Based System - European approaches 3

Stakeholders Active recognized 3

Banks play an active role, long term large shareholders protect to threat of takeovers. 3

Insiders groups monitor management, Reduce of Agency problems 3

Different polititcal, legal and regulatory Structures (European contries) 3

3

Germany and France 3

Relationship Based System - Asian Aproaches 3

Differing Corporate Governance models ( Concentration of Ownership of companies) 3

China: Governement - controlled organisation, 6 maint types of Enterprises. 3Majority Shs - Single extende family - East Asia - Board dominated by majority shs) 3

Japan(Outsider boards representing SHs or board member are insiders leading managemet) 3

Family Controlled companies and Business Networks - East Asian

Part D: Case Studies of Governance Failure

Case 3.1 Enron

Case 3.2 HIH

Case 3.3 Global Financial Crisis 3 8

Bailouts, Bankrupticies and takeovers 8

Key issues arising from the global financial crisis and Repsonses IFAC (paib 2004) 8

Reading 3.1: The corporate governance lessons from the financial crisis

Reading 3.2: The chairman reflects

Reading 3.3: The social responsibility of business is to increase its profits

Reading 3.4: Responsible business engagement with society

Questions: 3.1 Reasons Why good corporate Goverance is seens to be important and benefitial

Questions: 3.2 What is major issue that arise form a n agency relationship, where powers of control are delegated. (Conflict of intererst)

Section B: Effectiveness ( Board: Composition, Appointment, Commitment, Development, Information,

Supprot, Evaluation, Reelection)Section C: Accountability(Financial and Businessreporting, Risk management and Internal control, Audit

Committee and Auditors,)

Company Law, Employee representation, Stakeholders issues, Shs rights, Board Structure,

Supervisory body, Disclousre


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Questions: 3.6 What are key issues of governance affecting not for profit organisatiosn?

Questions: 3.7 What do you consider are the main corporate governance issues affeccting small business

Questions: 3.6 What are key issues of governance affecting not for profit organisatiosn?

Questions: 3.15 Market based system * Strenghts and Weaknessess

Questions: 3.15 Relationship based systems Advantages and disadvantages


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Module 4: Corporations and their stakeholders Page #

Stakeholder Concepts 4

Stakeholder map 4

Nature of the corporation and key stakeholder relations ( table 4.1) 4

Issues arising from stakeholder theory 4

Agency Theory and Remuneration

Corporate Governance and controlling agents ( Corporate Goverance and Theory problems) 4

Directors and other Officers 4

Agency and delegated powers ("Utility maximising Agent" - not acting in the best interest of principal) 4Agency Theory (Jensesn and Meckling - 1976 : 2 Key assumptions, Barriers to Goal Congruence) 4

Agency Costs 4

Residual costs: (Loss & Cost under performance : An agency cost borne by principals) 4

Over-consumption of perks : (lack og goal congruence: reduce both profitability and Cash flow) 4

Empire building: Financial rewards: Power and influence increase: purcharse subsidiare) 4

Risk avoidance: (Risky investment avoidance because of fixed salary package) 4

Differing time horizons : Perpetual cash flows, interest in the firm for the duration of theiremployment) 4

Bonding costs : reducing residual & monitoring cost for a greater remuneration - borne by agent) 4

Monitoring costs : Cost associated by principals in order to know & control agency matters) 4

Remuneration Issues 4

Remuneration of Executive & non executives director - UK FRC CGC 2010 4

4

4

4

Disclosure and transparency :non Individual should set their own remuneration. 4

Remuneration Disclosure - International Approaches : France, UK, USA 4 1

Employees (vital and internal Stakeholders - OECD Guidelines) 4

Australian Consumer Law (unfair practices, penalties and compensation) 4

Occupational health and safety 4

Fair pay and working conditions 4

Family and Holiday Entitlements: Al, Paternity & maternity Leave, others type of entitlements) 4

Ethical obligations - Employee Goverance (Code of conduct - Satysfying the objectives of the OECD principles 4

Case examples of Failure : Nike, James Hardie 4

Whistleblowers 4

Australian Corporation Act Whistleblower Protection ( Example: Sherron Watkins - ENRON) 4 2

Trade and labour unions (Collectives Bargaining) 4

External Stakeholders ( Considered outsiders in term of Governance) 4Global Society and Environment (corporations to asssume ethicals leadership) 4

The Economic and Legal System 4

The legal System as a Stakeholder (Good laws to achieve good outcomes and should do so reliably and acces to court) 4

Competition and Protecting Markets for Goods and Services ( monitor by ACCC) 4

Competition Policy ( Competitve markets to avoid Monopolist Corporation) - Policy Objectives 4

4 2

Competition and Stakeholders (Maintain competition btw technologies in the bradbank sector, internet providers) 4 3

Ethical obligations (Collusion btw competitor very bad) - Tab 4.2 International Competition legislation and Regualtions 4

Regulations on anti-competitive behavious (Detailed rules to regulate: 4 3

Abuse of market power ( Predatory Markets - ACCC: Penalties against Cabagge and Intel) 4 3

Mergers and acquisition (reduce # of competitors - prohibited or limited) 4 3

Agreement between competitors - Cartel Conduct 4 3

Compettitors Collusion -Cartel Behaviour 4 3

Output Restrictions ( Agreemts wil lcause Shortage in markets - price raises. 4 3

Allocating Customers Suppliers or territories ( Creating Artificial Monopolies) 4 3

Bid Rigging (Work collude - Competitve Tenders Inflate price to win a bid) 4 3

Price Fixing (Parallel Conduct) - Examples 4 3

Unilateral restrictions on Supply (exclusivng dealing) - Third line forcing: Ilegal, anticompetitive and lessen competition) 4

Resale Price Maintenance (Ilegal practice: sells products above a stated price) 4

Approvals Procedures (Franchises: formal mechanisms to authorise third line forcing - ACCC) 4

Proof, penalties and redress - Criminal and Civil 4

Laws Leading to Criminal Penalties (proof beyond reasonable doubt - Punishment: fines/Jail) 4 3

Laws with Civil Outcomes and Civil Penalties (Balance of probabilities - Fines: penalties payables to the state) 4

Redress and Penalties for anticompetitve breaches (Redress or remedies, Damages or compensation, Penalties,others) 4

Legal Compliances and Governance (Other real costs) 4

Compliance Programs : Competition Law, Consumer Law, corporate law and others) ) Main benefits) 4

Avoiding Harm ((posible benefits for Compliance programs, Benefits for all major stakeholders) 4

Consumers and Customers 4

Ethical obligations (Long term sustainable realtionshipconsumers (customers)and final product users) 4

Regulation and consumer protection( Table 4.3 Consumer protection Legislation) 4

Guarantees and warranties 4

Performance-based remuneration (Fixed:individual/corporation performace and At Risk portion: Reaching

certain goals and performance beanchmarking)

Workable Competititon ( requirements of workable or effective compettion) (judgements based in Balance of

Probabilitites)

Non executives Directors: not performance based incentives, Based only reasonable retur for time

dedicated to corporation's businesses

Executives Directors : Remuneration committee: remunerated for their perfomance/achieving of goal

congruence


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Puffery versus deception (Extreme exageration: Puffery is aceptable) (Deceitfull communication) 4

Unconscionable conduct ( sufficiently unfair as to be considered as Unconscienable) 4

Examples of transactions : Amadio Case - Consumer Law) 4

Tests for unconscionable conduct 4

Suppliers and lenders 4

Considering Suppliers and Lenders as a Stakeholders ( table 4.4)

Expanding Ethics (Minimum Ethical Standards should be displayed by supliers / HSBC Supplier code of Conduct)

Financial Markets as a Stakeholders (2 governing Theories:Efficency of Markets and Investor Confidence)

Roles of Markets ( ROI)Roles of the Media

Role of Other Intermediaries ( Investments banks, Consultants and Auditors)

Protecting the Financial Markets (Directord / Officers breaking the law)

Insider Traiding rules (Key Test in determaining Insider trading, Examples of Insider Trading, Case: PAroo) 4


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Module 5: Corporate social responsibiliy Page #

Definition and Overview 5

The evolution of CSR - A brief hstory 5

Definition (Commmision of European Communitites, CPA - CSR reporting, Australian CSR reporting practices) 5

The concept of accountability (Linkage between accounting and accountability, Responsabilitties) 5

Gray, Owen and Maunders (1987) 5

Role of Corporate report (and corporate reporting) 5

Social reporting (Components of CSR reporting) 5GRI guidelines on Social performance indicators 5

The aspects that social reporting encompasses 5

Environment reporting (Component of CSR reporting) 5

GRI guidelines on Environmantal performance indicators 5

Sustainability reporting 5

Definition of Sustainability Reporting - GRI 2007 guidelines 5

GRI performance indicators - (Economic, social and Enviromental performance categories) 5

The externalities created by business organisations (Definition, Positive (benefits) or Negative (cost), qualitatives terms) 5

Gray and Bebbington (1992) on sustainable cost / Calculations 5

The importance of climate change and its relevance to CSR reporting (Carbon tax scheme) 5

Alternative perceptions about the responsibilities of organisations ( Organisations responsabilities/Accountabilities) 5

Milton Friedman on the role of business (shs focus - not strong advocate for Social and envirponemental reporting)) 5

Alternative view - Mathews 1993 ( Community Expectations)) 5

Who are the stakeholders of an organisation? 5

Definition (Freeman 1984) of stakeholders, BHP, Toyota and Amcor focus on Accountability) 5

The shareholder primary perspective 5

Shareholder primary Vs social contract perspective 5

Motivations for embracing CSR reporting (Accountability to Stakeholders or economic focused to protect Shs value) 5

Elightened self-interest 5

Good faith requirements 5

Drivers towards better CSR (BCA) "(Doing r ight thing" BCA is based in Managerial Reasosining rather than ethical) 5

Motivations for disclosing social and environment information in CSR (Deegan 2009) 5

Stakeholder management 5

Stakeholder theory - The Managerial branch 5

Gray, Owen and Maunders (1987) - (Powerful & Influence Stakeholders in order to get support and Approval) 5

Stakeholder theory - The ethical branch 5

(Managers have a fiduciary duty to all stakeholdersrather than just Shs) 5

Organisational legitimacy (highly motivation for corporations to provide CSR information) 5

Legitimacy theory ( Community perceptions - disclousres in order to survive - non to demostrate Accountability) 5The social contract (Organisations to meet requirements of both legitmacy and relevance-Schocker&Setti) 5

Methods to legitimise its activities (Dowling & Pfeffer 1975) 5

Course of actions to repair legitimacy (Lindblom 1994) 5

Empirical evidence consistent with legitimacy theory 5

Other incentives tied to maximising the value of the organisation (WBC - Environmental issues ans Financial positions) 5

Preferential capital flow (Investments portfolis - VicSuper Sustainability report) 5

Brand and reputation (Social and Environmental performance - remedial actions to rebuild lost legitimacy (Islam &Deegan) 5

Risk management incentives(Direct&Indirect Costs, Reducing risk - climate change for transparent reporting) 5

Limitations of traditional financial reporting 5

Accounting framework focus in Shareholders primacy perspective. 5

Cannot answer questions related to SocIAL AND Enviromental Performance) 5

Definitions of Elements of Financial reporting 5

Enviromental Resources (Externalities(Benefits/Cost) not controlled by Entity - not considered Assets of the Entity) 5

The practice of discounting future cash flows 5

The Stern review on the Economics of climate changes (Value of the cost of climate change overstimated) 5

Issues of 'reliable measurement' and 'probability' (JI and Deegan - Laibilites & Provsions realted to Externalitites difficult to measure) 5

Yankelovich - Measurement issue - assessment - wrong practice)

The entity assumption (Externalitites to be ignored) 5

Current regulations for CSR reporting 5

Requirements embodied within the Corporations Act and accounting standards 5

Corporation Act :Directors to Provide financial details of Environmtnal performance) 5

Corporations act section 299 (1)(f) on environmental performance / Asic require entities to disclose financial/non financial) 5

Corporations act section 299 A on Directors' report 5

AASB 137 Provisions, contigent liabilities and contigent assets -Uncertain(Entities no quantify externaliites, non measureable/reliable) 5

AASB 116 Property, plant and equipment 5

National Greenhouse and Energy Reporting Act 2007 - Objectives 5

NGER Act: Reporting thresholds 5

National Pollutant Inventory (NPI) - Howes 2001 - NPI compel's business to release information 5

Energy Efficiency Opportunities Act 2005 - required to undertake detai led energy assessment to identify oportunitites) 5Other legislations aimed at motivating improvements in Social and Environmental performance) 5

Australia: Independent pricing and regualtion tribunal, NSW ENErgy Saving Scheme, Commonwealth Renewablwe Energy target Scheme) 5

d h


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Voluntary frameworks for CSR reporting

The global reporting initiative (GRI) - G3 Guidelines, Sectors Suplements, Protocols, National Annexures)

Practical applications and testo to help to apply this principle:

External factors in defining material topics

Internal factors in defining material topics

The Guidelines then recommended content

International guidance in CSR-related performance and reporting

Carbon disclosure project(Carbon emission and climate change represent significant business risk - Investment decision)Accountability AA1000 series & principles

Equator Principles (determine, assess ans manage Social and Environmental risk in project financing)

The Greenhouse gas protocol GHC Kyoto Protocol - 2 Standards / objectives

Trucost (Helpto identify high -risk sectors for investments / cash flows - meet environemntal reporting requirments)

Social audits and their relationship to CSR reporting(Elkington -Definintion: Assess performance in realtion to Society requirements and expectations)

The Body shop

Nike

Social Accountability International (SAI) - Social Accounting Standards SA2008)

Examples of best practice and innovative reporting

CSR The zone of acceptability (Identify leading edge / Reporting Sophisitcation)

ACCA sustainability reporting awards judging criteria(VicSuper, Fuji xerox, CPA Sustainability report - P ositive attributes and recommendations)

Integrated Reporting: IIRC missions and objectives for an inte grated reporting framework, roles of IIRC

International initiatives on climate change - Institutional Framework to reduce emmision(mitigation) and adapting toclimatechange(Adaption). - Kyoto Protocolo

The Copenhagen accord (interim measure to address various aspects of climate change)

Climate change accounting techniques (Cap-and trade method for carbon emmision - designed as a market based aproach)

Financial accounting treatment for Cap and Trade scheme (Fixed price and Floating-price)

Accounting for the levels of actual emissions (3 Categories), NCOS -set up by Australian Governement; Genuine csrbon offset)

Greenhouse gas emissions ( yarra Valley Water Sustainability report

Environmental management accounting

IFAC to define EMA, IN realtion to waste - Glad Stated, Deegan: prescrition in relation to creating more refine accounts of waste)

Deegan - EMA Benefits

Corporate governance mechanisms aimed at improving social & environmental perf

Accountable and Transparent, Stakeholders engagement to fulfill thwir environmental and Social responsabilities

ISO 14001 Environemntal Management System and ISO 26000 Guidance on Social responsibility

Sustainability performance and remuneration - Amcor Sustainability Report: core values/Performance indicatorsQuestion 1 : Linkage between Accountability and Corporatereporting

Question 2 Nature of Externality, (positive and negative externality

Question 6 Explain how any assessment undertaken by management can affect the audience of the reports

Question 7 Limitations of financial reporting practices realted to climatechange

Question 8 Enlightened self interest against Sustainbale development as a guiding principle

Question 18 Identify 5 corporate governance policies thatcould act to enhance an organisation's social and environmental performance.

Eco-balance (mass balance:Inflows-production process/outflows -finished products, organisattion to formulate measure to reduce

enviromental impact(recycled, waste products, waste and emissions)


13/24

Workshop

2

2

2

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3

3

4

4

4

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5

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5

5

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5

5

5

5

6

6

6

66

6

6

6

7

7

7

8

8

8

8

8

8

8

8


14/24

Workshop

9

9

9

9

9

1010

10

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12

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14

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15/24

18

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20

20

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2020

20

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20

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20

20

20

20

20

21

21

21

21


16/24

Workshop

2

2

2

2

2

2

2

22

2

3

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4

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5

55

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5

5

55

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5

5


17/24

6

6

6

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6

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6

6

66

6


18/24

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77

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77

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88

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8

8

8

8

8

8

88

8

8

8


19/24


20/24

Workshop

9

9

9

9

10

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10

1010

10

10

10

10

10

10

10

10

12

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1313

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21/24

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23/24

Workshop


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Ethics and Corporate Governance - Index

Documents