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Institute
of
Management
Accountants Standards of Ethical Conduct
Management
accountants have an obligation to the organization they serve, their profession,
the public, and themselves to maintain the highest standards of ethical conduct.
In recognition of this obligation, the
Institute
of
Management Accountants
has promulgated the
following standards of ethical conduct for management accountants. Adherence to
these standards is integral to achieving the Objectives of Management
Accounting. Management Accountants shall not commit any acts contrary to these
standards nor shall they condone the commission of such acts by others within
their organizations.
Competence
Management
accountants have a responsibility to:
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Maintain
an appropriate level of professional competence by ongoing development of
their knowledge and skills.
-
Perform
their professional duties in accordance with relevant laws, regulations, and
technical standards.
-
Prepare
complete and clear reports and recommendations after appropriate analyses of
relevant and reliable information.
Confidentiality
Management
accountants have a responsibility to:
-
Refrain
from disclosing confidential information acquired in the course of their
work except when authorized, unless legally obligated to do so.
-
Inform
subordinates as appropriate regarding the confidentiality of information
acquired in the course of their work and monitor their activities to assure
the maintenance
of that confidentiality.
-
Refrain
from using or appearing to use confidential information acquired in the
course of their work for unethical or illegal advantage either personally or
through third parties.
Integrity
Management
accountants have a responsibility to:
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Avoid
actual or apparent conflicts of interest and advise all appropriate parties
of any potential conflict.
-
Refrain
from engaging in any activity that would prejudice their ability to carry
out their duties ethically.
-
Refuse
any gift, favor, or hospitality that would influence or would appear to
influence their actions.
-
Refrain
from actively or passively subverting the attainment of the organization’s
legitimate and ethical objectives.
-
Recognize
and communicate professional limitations or other constraints that would
preclude responsible judgment or successful performance of an activity.
-
Communicate
unfavorable as well as favorable information and professional judgments or
opinions.
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Refrain
from engaging in or supporting any activity that would discredit the
profession.
Objectivity
Management
accountants have a responsibility to:
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Communicate
information fairly and objectively.
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Disclose
fully all relevant information that could reasonably be expected to
influence an intended user’s understanding of the reports, comments, and
recommendations presented.
Resolution
of Ethical conflict
In
applying the standards of ethical conduct, management accountants may encounter
problems in identifying unethical conduct or in resolving an ethical conflict.
When faced with significant ethical issues, management accountants should follow
the established policies of the organization bearing on the resolution of such
conflict. If these policies do not resolve the ethical conflict, management
accountants should consider the following course of action:
-
Discuss
such problems with the immediate supervisor except when it appears the
superior is involved, in which case the problem should be presented
initially to the next higher level. If satisfactory resolution cannot be
achieved when the problem is initially presented, submit the issues to the
next higher managerial level.
-
If
the immediate superior is the chief executive officer equivalent, the
acceptable review 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 onyx with the superior’s
knowledge, assuming the superior is not involved.
-
Clarify
relevant concepts by confidential discussion with an objective advisor to
obtain an understanding of possible courses of action.
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If
the conflict still exists after exhausting all levels of internal review,
the management accountant may have no other recourse on significant matters
that to resign from the organization and to submit an informative memorandum
to an appropriate representative of the organization.
Except where legally prescribed, communication of such problems to authorities
or individuals not employed or engaged by the organization is not considered
appropriate.
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