Standards of Ethical Conduct for Practitioners of Management
Accounting and Financial Management.
Management accountants should behave ethically. They have an obligation to follow the
highest standards of ethical responsibility and maintain good professional image.
The Institute of Management Accountants (IMA) has developed four standards of
ethical professional conduct.
The IMA Statement of Ethical Professional Practice has been revered as the central
code of ethics for management accountants.
1. Competence
Maintain an appropriate level of professional expertise by continually developing
knowledge and skills.
Perform professional duties in accordance with relevant laws, regulations, and
technical standards.
Provide decision support information and recommendations that are accurate,
clear, concise, and timely.
Recognize and communicate professional limitations or other constraints that
would preclude responsible judgment or successful performance of an activity.
2. Confidentiality
Keep information confidential except when disclosure is authorized or legally
required.
Inform all relevant parties regarding appropriate use of confidential information.
Monitor subordinates' activities to ensure compliance.
Refrain from using confidential information for unethical or illegal advantage.
3. Integrity
Mitigate actual conflicts of interest; regularly communicate with business
associates to avoid apparent conflicts of interest. Advise all parties of any
potential conflicts.
Refrain from engaging in any conduct that would prejudice carrying out duties
ethically.
Abstain from engaging in or supporting any activity that might discredit the
profession.
4. Credibility or Objectivity
Communicate information fairly and objectively.
Disclose all relevant information that could reasonably be expected to influence
an intended user's understanding of the reports, analyses, or
recommendations.
Disclose delays or deficiencies in information, timeliness, processing, or internal
controls in conformance with organization policy and/or applicable law
Resolution of Ethical Conflict
In applying the Standards of Ethical Professional Practice, you may encounter problems
identifying unethical behavior or resolving an ethical conflict. When faced with ethical
issues, you should follow your organization's established policies on the resolution of
such conflict. If these policies do not resolve the ethical conflict, you should consider the
following courses of action:
Discuss the issue with your immediate supervisor except when it appears that the
supervisor is involved. In that case, present the issue to the next level.
If you cannot achieve a satisfactory resolution, submit the issue to the next
management level. If your immediate superior is the chief executive officer or
equivalent, the acceptable reviewing authority may be a group such as the
audit committee, executive committee, board of directors, board of trustees, or
owners. Contact with levels above the immediate superior should be initiated
only with your superior's knowledge, assuming he or she is not involved.
Communication of such problems to authorities or individuals not employed or
engaged by the organization is not considered appropriate, unless you believe
there is a clear violation of the law.
Clarify relevant ethical issues by initiating a confidential discussion with an IMA
Ethics Counselor or other impartial advisor to obtain a better understanding of
possible courses of action.
Consult your own attorney as to legal obligations and rights concerning the
ethical conflict.
