Financial Reporting and Ethics - The Institute of Chartered ...

ETHICAL FRAMEWORK, CONCEPTS AND VALUEthe elementary rules of equity and justice in paying a fair salary. This isethically pitched at a point not as agreed with the employees, butsufficient to sustain the needs of the worker and his family. Workershave to realize that governance attracts the outlay of money, sources ofwhich include raising taxes, levies and duties.(b)(c)(d)(e)Government sometimes spends the tax payers’ money unwisely. Aresponsible government is expected to provide hospitals, good roads,well equipped schools, security of lives and property, amongst others.Governments fail to carry the citizenry along, demonstrate fairness,probity and accountability. On the contrary, the leadership and itstentacles are pursuing selfish and conflicting interests by plunderingthe Nation’s treasuryeasury.It is often erroneously held that the shareholders ‘own’ the companies.The indication here is that the right to an asset confers unlimited controlby the owner. In the face of the law, the view expressed above is valid incertain legal systems. However, from the moral point of considerationand reason, nobody has such a right. Indeed, it is held that a personwho wantonly discards anything for the simple reason that theindividual does not have further use for it, forgetting that, in creation,the undermined thing can be very useful to other fellow beings, has notacted rightly. The person who destroys recklessly is acting contrary tonature’s design because of his conflicting interest.Many board members and top management staff do not appearto be pursuing the goals and aspirations of the companies which theypurport to be there for. Quite a number of them award contracts tothemselves, using the names and particulars of companies which donot exist in the books of the Corporate Affairs Commission (CAC). Theconflict of interests sometimes drives them to ‘empire build’ theircorporate organisations. The directors or managers enter new businessesand bring in more employees so as to boost their ego and pay, on theground that there is increase in the size of the companies.Suppliers and creditors sell on credit with a view to having theindebtedness settled as early as possible or as agreed with the vendeecompanies. However, some insolvent companies which are pressed forcash unethically treat their suppliers and creditors. They buy on creditand sell off immediately at a loss. Such insolvent companies thus obtainthe much needed cash so as to stave off much pressing demands. Thesuppliers and creditors would have unknowingly joined the league oforganisations which the insolvent companies might not be able to pay.135