Ethical Professional Practice

IMA’s Statement of Ethical Professional Practice (SEPP) is an ethical guidance code containing principles and standards for its members to follow in order to act virtuously in the business profession. IMA’s SEPP principles are honesty, fairness, objectivity, and responsibility. The standards of the IMAR’s SEPP include competence, confidentiality, integrity, and credibility. These standards hold the members of the IMA to the utmost level as they undergo difficult predicaments in their professions.
Susan is an experience professional, she has been working with a retail business for two and half years as a financial account manager. Susan has a CMA license in the state of California and has a M.B.A in Finance from University of California, Berkeley. …show more content…
In the first dilemma, a director approach Susan to make a transfer of funds to another company for which he is on the board of directors. The company that he asked to transfer funds to is a sport good manufacturing company and has no relation to Susan’s company. Susan didn’t feel comfortable going forward with the transaction so she requested additional information. Susan has been told the transaction is critical to the business and has the approval of top management. However, Susan doesn’t want to be responsible for signing off on a transaction without the proper sufficient source …show more content…
Susan and the whole acquisition project team are at risk of violating the credibility principle because they have the responsibility to disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law (IMA SEPP). Susan is at risk of violating the Competence Principle because without adequate and complete information Susan would not be able to provide decision support information and recommendations that are accurate, clear, concise, and timely (IMA SEPP). To resolve these ethical conflicts, the issues need to be understood and addressed to ensure that all board members receive the information that is require to ensure that the decision-making process is not compromised. Additionally, there is a significant risk present because of the CEO’s behavior and actions of controlling the information that is disclosed. The governance body needs to address this issue to ensure that the information that is relied on is in reflection of the nature of the company’s transaction with no material