Ethical lens October 2011

October 2011

Welcome to our new e-bulletin – updating you on the most recent ethics and sustainability news from CIMA and beyond.

DIRECTORS MESSAGE

Ethics are important to me because… “…in the long term right works and wrong does not. Our Code of Ethics provides a global platform for professional people that businesses can rely on to help them succeed by doing the right thing to keep the business intact, in other words it’s about business sustainability.”

Robin Vaughan, Executive Director, Governance and Professional Standards

UPCOMING SURVEY Responsible business In 2008 we conducted a survey which was the basis for the Managing responsible business report. We are now conducting the second survey on the same theme, striving to always keep up in this ever changing business climate.

Look out in your email in October for the 2011 survey to share your experience and take part in shaping the 2011 Manage responsible business report, or follow this link to complete the survey now. Everyone who completes the survey will be entered in a prize draw with the chance to win an IPad (16GB, wifi only).

ANTI-BRIBERY Guidance With regards to the new Bribery Act which came into force in mid 2011, CIMA and St Paul’s institute held a seminar to discuss the responsibilities financial management has in implementing anti bribery guidance. UK Bribery Act: how will you act? is a good tool to help you understand the principles of the Act. At our Bribery Act pages you will also find webcasts from the seminar, the results of our survey on how our members prepared themselves for the implementation of the Bribery Act and our initial briefing document.

Action against corruption Corruption worldwide is increasingly under the spotlight.

The Arab Spring showed how people are making a stand for change against corrupt regimes. More recently anti-corruption campaigner Anna Hazare has been making the headlines in his strive for the establishment of a nationwide ombudsman system in India. The organisation Transparency International works globally against corruption, read their views on the struggle against corruption in India here, or study up on world corruption via their 2010 Corruption Perception Index.

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October 2011 RECENT REPORTS – ETHICS Fact or fiction? We started with a first report based on round table discussions in the UK, and then conducted a second round table in Singapore, which resulted in the Asian version. Fact or fiction? the independent business partner: Europe & Asia explores the opportunities and challenges that finance transformation is creating, with particular regard to independence and objectivity of the finance function and its professionals. It also investigates how the role of the management accountant is developing, and underlines the importance of interpersonal skills and strong integrity. We will continue our research in Eastern Europe and Africa in the coming months.

Related articles The article Are you prepared to partner? from CIMA’s student magazine Velocity explains some of the findings of the reports in greater detail.

Jeffrey A Joerres’s article Beyond expats: better managers for emerging markets, featured in the Fact or fiction? report, talks about the new set of challenges in emerging markets.

RECENT REPORTS – SUSTAINABILITY Accounting for H2O The report Apocalypse H2O: accounting for the true value of water was published earlier this year. At a global level both the World Bank and the UN have raised alarm about possible water ‘stress’ situations in the future, this report focuses on two companies, Puma and Rio Tinto, and their long term commitment to better water through water management and valuation. CIMA’s research and development manager, Sandra Rapacioli explains more about this report in an Insight article from July 2011.

New approach to water Coca Cola is one of the companies that have taken a stand in writing a corporate water strategy where they aim to return as much water to nature and communities as they use in their drinks. The article Coca-Cola – replenishing water in the drinks industry, from Guardian’s Sustainable business pages, goes into more detail.

CIMA WORLD CONFERENCE Cape Town 2011 The CIMA 2011 World Conference will be taking place in Cape Town, South Africa, on 24 to 25 October. This year’s theme is Business in tomorrow’s world – a sustainable future.

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October 2011 Sustainability report The report Sustainability in emerging markets: lessons from South Africa traces the emergence of corporate responsibility issues and their impact in emerging markets. Incorporated in the report is a feature by journalist and broadcaster Chris Gibbons specifically on South Africa and its approach to corporate responsibility. In the September issue of Financial Management Samantha Louis, regional director of CIMA Africa, has written an opinion piece about the growing interest in and importance of sustainable business.

Photo: Sasol, www.MediaClubSouthAfrica.com

LET AFRICA INSPIRE Evaluate impact Standard Chartered Bank produced this analysis, which explores their social and economic impact in Ghana. In a time when banks have to fight for their reputation, this paper provides examples of how they have positively influenced Ghanaian society and economy. For more information about the analysis follow this link to read a news piece and view a short film.

Brewing for sustainability The global brewer SABMiller has over 200 beer brands the world over. They show their commitment to sustainability through various projects with an aim of making local communities and environment grow. In July this year they released the report the socio-economic impact of Accra Brewery Limited on Ghana, which concludes that ABL and Voltic contributes with US$ 117.1 million to the Ghanaian economy – the equivalent of 0.4% of GDP. Visit SABMiller’s website to read more of their sustainability Photo: Jason Alden / OneRedEye www.sabmiller.com reports.

Business in South Africa The Institute of Business Ethics recently released a report about the business ethics climate and corporate responsibility in South Africa. Doing Business in South Africa: An overview of ethical aspects is produced as an overview and guidance paper for companies and organisations considering entering the South African market.

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October 2011 INTEGRATED REPORTING IIRC discussion paper The International Integrated Reporting Committee (IIRC) recently published Towards integrated reporting – communicating value in the 21st century, a discussion paper that outlines the planned development of integrated reporting. The IIRC invites people to join in the discussion to obtain input from the wider business community, visit their website express your views on the future of integrated reporting.

Harvard Business School article The article Leading and lagging countries in contributing to a sustainable society, by Harvard Business School, discusses this new type of reporting. Integrated reporting – compiling financial results together with social and environmental – is still in its early stages but is becoming increasingly popular as it is a more sustainable and long-term way of reporting a company’s profits or losses. The authors of the article analysed data from more than 2000 companies in 23 countries. The countries that were striking the highest points in both social and environmental performance were UK and Germany. For more information on integrated reporting visit the IIRC. CIMA report Earlier this year CIMA released the report Tomorrow’s corporate reporting – a system at risk, which aims to raise awareness of why and how corporate reporting needs to develop on many points, the integrated reporting model being promoted as a blueprint for how to create a report that reach further than reports based solely on numbers and figures. For more information, visit Nick Topazio's blog on CIMAsphere or listen to this presentation by Gillian Lees about Accounting for sustainability (A4S) and the IIRC.

CIMA CASE STUDY AWARDS SRI LANKA Value through sustainability On the 7 September the award ceremony for CIMA’s case study competition took place in Colombo. The competition included a number of cases on sustainability. The 1st runner up was a team from Holcim (Lanka) Ltd, one of the leading suppliers of cement and aggregates, with a case on Creating value through sustainability. The project explained how the resource management company Geocycle became a key component of Holcim Ltd’s sustainability strategy.

By highlighting societal engagement and focusing on communication and education, in combination with introducing more efficient waste management options, Geocycle managed to create more profit, increase employment and reduce carbon emissions.

This case study exemplifies how profitable business and sustainable business go Award ceremony in Colombo hand in hand.

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October 2011 TOMORROW’S LECTURE SERIES WEBCAST Tomorrow’s value paper The financial crisis has forced businesses to ask questions about how they contribute to wider community, to their ethical and moral responsibilities. The Tomorrow’s value paper – and the lecture series in partnership with Tomorrow’s Company– explores and debates ideas about how business value can be redefined to create a road map for a sustainable prosperous future.

India next A forthcoming lecture will take place in Mumbai, India, on the 2-3 November. The event, hosted by Tata locally, will be looking at Success through business sustainability – strategy, leadership and reporting.

CIMA ETHICS AND SUSTAINABILITY AGENDA Ethics resources CIMA has an extensive ethics resource bank available for its members, students or anyone else who finds it useful. We have a collection of articles, webcasts, case studies and reports, all kept up to date. Access the resources here.

CIMA and ethics Tanya Barman, head of ethics, Gillian Lees, thought leadership specialist, and Sandra Rapacioli, research and development manager, outlines CIMA’s ethics and sustainability agenda in this presentation from July 2011.

Find us at www.cimaglobal.com/ethics

CIMA ethics helpline This free confidential helpline offers ethical guidance and how the code of ethics can be applied to CIMA members and students:

UK Legal Helpline LAW Express - for CIMA members and students.

Gives access to information online for no charge and a low cost professional legal advice line:

0800 358 7663 +44 (0)20 8849 2303 ethics@cimaglobal.com

0800 092 1980 www.cimaglobal.com/helplines

Please contact us with feedback or with any ethics/sustainability stories you wish to highlight: camilla.hedborg@cimaglobal.com

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