Professional Ethics and Governance notes

Professional Governance and Ethics notes

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CONTENT

  1. Overview of Professional Ethics
    • Definitions of ethics, the good as the last end, the common good, ethical norms, morality, values and ethical conduct, conscience and levels of conscience
    • Ethical philosophy, principles
    • Ethics and professionalism
    • Definition of Business Ethics and Corporate Ethics
    • Benefits and importance of ethical conduct in the investment industry
    • Ethics and law
    • Challenges to ethical behaviour and ethical dilemma
    • Ethical decision making framework
    • Code of ethics and professional standards – ICIFA
    • Code of ethics versus code of conduct
    • Role of a code of ethics in defining a profession

 

2.                   Ethical Theories

  • Moral development (theories): Kohlberg Theory; Gilligan’s Theory
  • Consequentialist Theories: Utilitarian; Egoistic; Common Good
  • Non-consequentialist Theories: duty-based; the rights; the fairness or justice, the divine command
  • Agent-centred theories: the virtue; the feminist
  • Applied Ethics: terms used in ethical judgments; obligatory, impermissible, permissible, supererogatory
  • Framework for ethical decision making: the consequentialist framework; the duty framework; the virtue framework

3.                   Ethics and the Investment Industry

  • Need for high ethical standards in the investment industry and why it matters
  • Types of investment fraud
  • Ethics, Society, and the Capital Markets
  • Capital Market Sustainability and the Actions of market players
  • Relationship between ethical and legal standards
  • Commitment to Ethics by Firms
  • Applying the ethical framework
  • The standards of professional conduct
  • An ongoing commitment to professional competence: ethical decisions in the stock market; short selling, pump and dump, insider trading, bucketing, false trading, cornering
  • Factors influencing business ethics
  • Establishing ethics and trust in the investment industry

 

4.                   Generally Accepted Codes of ethics and Standards of Professional Conduct

  • Professionalism
  • Concerns of professional ethics
  • Integrity of Capital Markets
  • Duties to clients
  • Duties to employers
  • Investment analysis, recommendation and actions
  • Conflict of interest
  • Code of ethics for various professionals: ICIFA code of conduct, standards and ethics; Stewardship Code for Institutional Investors 2017; The code of corporate governance practices for issuers of securities to the public 2015
  • King IV Report on Corporate Governance
  • The revised Organisation for Economic Co-operation and Development (OECD) principles of corporate governance and their relevance to non-OECD countries
  • Cadbury Report of the committee on the financial aspects of corporate governance
  • The Hampel committee on corporate governance

6.                  Global Investment performance standards (GIPS)

  • The genesis of the GIPS standards
  • Construction and purpose of composites in performance reporting
  • Requirement for verification
  • Structure of the GIPS standards
  • Benefits from compliance
  • Features of the GIPS standards and the fundamental of compliance
  • Scope of the GIPS standards with respect to investments firms
  • Implementation of GIPS standards in countries and conflicts with local regulations
  • The nine major sections of the GIPS standards

7.                   Overview of Governance

  • Definition of governance
  • Principles of Governance
  • Importance of Governance
  • Governance and Management
  • Ethical Leadership
  • Codes of governance
  • Importance of Codes of Governance
  • Corporate Governance Concepts
  • Historical overview of Corporate Governance
  • Inter-relationship between Business Ethics and Corporate Governance
  • Governance and the Law
  • Role of the board in promotion of ethical conduct

8.                   Theories of Corporate Governance

  • The Agency Dilemma
  • Agency Theory
  • Stewardship Theory
  • Resource Dependency Theory
  • Stakeholder Theory
  • Transaction Cost Theory
  • Political Theory

 

9.                   Emotional Intelligence

  • Definition of emotional intelligence (EQ)
  • Components of emotional intelligence
  • Signs of High Emotional Intelligence
  • The Importance of Emotional Intelligence in a Leader

10.               Accountability, Risk Management and Internal Control

  • Ethical risk and how to manage it
  • The Fraud Triangle Theory
  • Traditional Risk Theory applied to ethical risk
  • Financial reporting
  • Integrated reporting
  • Strategies and processes in enterprise risk management
  • Board’s role in enterprise risk management
  • Internal controls
  • Audit Committee
  • External auditor
  • Internal audit charter and work plan

11.               Stakeholders Management

  • Stakeholder groups
  • Shareholders and stakeholder rights and interests
  • Shareholders and stakeholder obligations
  • Minority shareholders
  • Stakeholders engagement
  • Stakeholders dispute resolution
  • Shareholders association and education
  • The Role of institutional investors in corporate governance
  • Institutional investors’ relationship with investee companies

12.            Case Studies in Professional Values and Governance

  • Importance of case studies
  • Using ethical concepts to analyze case studies
  • Practical professional ethical study cases
  • Enron scandal
  • Case studies on select stock brokerage firms and banks

13.               Contemporary Issues and emerging trends

  • Impact and inter-relationships between social media and professional ethics and governance, how much should employees post, technology, racial discrimination

 

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