Course Details

1. Evaluate different theories of ethics.
2. Explain the relationship between corporate governance and responsibility
3. Apply different ethical theories to accounting and business ethical cases.
4. Appraise the accounting professions code of professional conduct.
5. Explain situations where corporate governance structures have broken down.

Ethical theories: Distinguish between various ethical theories such as: relativism and absolutism. Distinguish between the deontological and teleological approach to ethics. Ethical decision-making models in accounting and professional contexts.

Social responsibility: Describe and evaluate the different approaches to ethics and social responsibility. Appraise corporate and personal ethical stances. Analyse the variables determining the cultural context of ethics and corporate social responsibility.

Code of ethics and ethical conflicts: Corporate codes of ethics. Professional codes of ethics. Critically evaluate the code of ethics relevant to accounting professionals. Evaluate issues associated with conflicts of interest and ethical conflicts. Appraise the nature and impacts of ethical threats and safeguards. Analyse the relationship between independence and ethical behaviour.

Corporate governance and agency theories: Definition, purposes and objectives of corporate governance. Evaluate the roles of external parties involved in corporate governance. Define and explore agency theory and its key concepts. Explain the relationship between corporate governance with the principal agency relationship.

Boards and corporate governance: Roles and responsibilities of boards of directors. Analysis of board structures. Characteristics of board composition. Purposes, roles and responsibilities of non-executive directors. Distinguish between the roles of the chairman and the chief executive officer (CEO). Assess the importance of board expertise. Analyse the frameworks for assessing board performance.

Committees and director remuneration: Explain and assess the importance, roles and accountability of board committees. Analyse the roles in effective corporate governance of various committees. Describe and assess the general principles of remuneration. Assess the effect of remuneration packages on directors’ behaviour.

• Kaplan Publishing, P1 Professional Accountant, Kaplan Publishing, Edition, 2011.

• Crane, A & Matten D., Business Ethics, Second Edition, Oxford University Press, 2006
• Solomon, J., Corporate Governance and accountability, Second Edition, John Wiley, 2007.
• BPP, AIA Professional Level 2 - Paper 15: Professional Practice (Auditing), 2nd Edition, BPP Learning Materials, 2008.

The taught part of course is delivered to the students by means of lectures. Lecture notes and presentations are available through the web for students to use in combination with the textbooks. Lectures are supplemented with class exercises carried out in class and via homework. The students will be asked to complete an assignment during the course.