Unethical practices like bribery, fraud, insider trading and conflicts of interest reduce trust, increase legal risk and damage reputation. Corporate governance aims to prevent these issues through policies, controls, oversight, and an ethical culture (concept).
Common exam tasks:
You should be able to:
Bribery is offering, giving, receiving or soliciting something of value to influence an official/business decision unfairly (concept).
Corruption is abuse of entrusted power for private gain (concept). Bribery is one form of corruption.
Fraud is intentional deception for unfair or unlawful gain (concept).
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Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.
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Unethical practices like bribery, fraud, insider trading and conflicts of interest reduce trust, increase legal risk and damage reputation. Corporate governance aims to prevent these issues through policies, controls, oversight, and an ethical culture (concept).
Common exam tasks:
You should be able to:
Bribery is offering, giving, receiving or soliciting something of value to influence an official/business decision unfairly (concept).
Corruption is abuse of entrusted power for private gain (concept). Bribery is one form of corruption.
Fraud is intentional deception for unfair or unlawful gain (concept).
Insider trading refers to trading in securities based on unpublished price-sensitive information (concept).
A conflict of interest occurs when personal interest interferes (or appears to interfere) with professional duty (concept).
Key point: Even the appearance of a conflict can harm trust.
Whistleblowing is reporting unethical/illegal activities within an organization to appropriate authorities (internal or external) (concept).
Policy -> Controls -> Detection (audit) -> Investigation -> Action/Discipline -> Culture reinforcement
From this topic
Differences (concept):
Any three differences/examples are sufficient.
Insider trading is trading in securities using unpublished price-sensitive information (UPSI) (concept).
Why unethical (any three):
Write any three points.
Conclusion: Strong controls and culture reduce corruption risks and protect stakeholders (concept).