Integrity

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ConcurrentSession 1A
Mr. Mark Billington Regional Director, South East
Asia, Institute of Chartered Accountants in
England Wales (ICAEW)
Ethical Practice - Black, White or Grey?
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Ethical practice black, white or grey?

• Mark Billington
• 14 October 2009

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About the ICAEW

• Founded in 1880
• 130,000 members in 160 countries
• Work in public practice, public sector and
  industry
• Royal Charter the public interest and the title
  Chartered Accountant
• ICAEW acts as regulator, regulatee and
  professional member body

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South East Asia

• Long time collaboration with Malaysia City Group
• 30 Authorised Training Employers in Malaysia
• Malaysia (2004), Singapore (2008), South East
  Asia Office (2009)

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Ethics .

• Is not corporate governance, corporate
  responsibility or sustainability
• Is values and principles acceptable to society
• Is concerned with human character and behaviour
• Goes beyond obeying laws, rules and regulations

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Why is ethics important?

• Markets
• Information
• Trust
• Mechanisms

MMO
T
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Ethics in the wider business sphere

• Need?
• Enron
• Maxwell
• Banks

National Integrity Plan

• Professional influence
• No overall control
• Accountants in roles
• Persuasion

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Thought leadership
Researchwith PekingUniversity
RiskManagement
CorporateGovernance
reAssurance
Dialogue incorporategovernance
Informationfor bettermarkets
CorporateResponsibility
FinancialServices
Inspiring confidence infinancialservices
CorporateFinance
Financingchange
Finance Management
Financedirection
Corporate Finance
InformationTechnology
Sustainable Business
Makinginformationsystemswork
Audit quality forum
Tax
Towards a better tax system
Market Foundations
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Market foundations
Public interest
Regulation
Professions
Ethicalbehaviour
Legal entities
Economiccrime
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Ethical behaviour

• Integrity focus
• Reporting with integrity
• Instilling integrity in organisations

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Is there always a right answer?

• Example truth or feelings?

• Example maintain confidence or endorse error?

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Drivers of organisational integrity
Leadership
Strategy
Policies
Information
Culture
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IFAC Code of Ethics
Short description of core approach
Plus some illustrative examples
A few prohibitions
Consider threats
Apply safeguards
Professional behaviour
Objectivity
or dont do it
Confidentiality
Professional Competence due care
Integrity
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Framework for Ethical Decision-Making

• Do I have all the facts relevant to this
  situation?
• Who should be involved in the discussions?
• What are the ethical issues involved?
• What are the alternative courses of action and
  their associated consequences?

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Example of rules based approach
The rule of unintended consequences!
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Why principles over rules?
Not easy option for users or regulators, but
Can apply to Infinite circumstances
Avoids its ok unless prohibited argument
Shorter and easier to learn
Recognises reality manage conflicts
Avoids legalistic form over substance compliance
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Infrastructure what we do
Education, inc. CPD
Discipline
Support
License, or PC
Monitoring
Transparency
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Auditor independence

• Public focus
• Regulatory involvement
• Lots of rules
• Harmonise around IFAC?

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Conclusion ethical practice is.

• Often seen to be

Black and white

• But it is and should be

Grey
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www.icaew.com/ethics www.icaew.com/southeastasia m
ark.billington_at_icaew.com