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

THE ENVIRONMENT: CORPORATE, PROFESSIONAL AND REGULATORY7.1.7 Financial JournalistsFinancial Journalists are researchers and disseminators. Their interestscentre on collecting data, analyzing them, making comparisons betweencompanies within the same industry and outside it and making suchinformation available to the members of the public.7.1.8 CustomersThe basic framework should be one of co-operation, quality productionof goods or services rather than exploitation, with one’s customers. Therelationship should be the receipt of reward for the value created forcustomers. This attitude fits into leading a moral life. It is theresponsibility of a company to employ reasonable means at all times toprevent harms from customers in consequence of its own activities.7.2 HOW A CORPORATION ENTERS CONTRACTUAL OBLIGATIONSIn giving an answer to the above stated poser, it has to be recalled that acompany or corporation, not being a human being, has to act through peoplewho, by law or strong tradition, are its agents or accredited representatives. Acompany’s agents that transact business with third parties include the boardmembers and top management, in the ordinary course of events. An agent,according to mercantile law, is a person who has express or implied authorityto act on behalf of another person that, on this occasion, is a company. All thelegitimate acts performed by the agent, on behalf of the principal, in the courseof business, are binding on the latter. The actions taken by the agents shouldbe inviolate and protective form expropriation or ‘rip-offs’ of the principals oroutside investors, by insiders (including corporate board members,management, family interest and/or government).7.3 THE CONCEPT OF ACCOUNTABILITYABILITY7.3.1 Introduction‘Accountability’ means rendering ‘stewardship’. It is the act of beingable to shoulder responsibilities and carry the correlative burden ofperformance. The concept of accountability remains constant, whetherin the public or private sector. The discharge of accountability rests onnatural legal persons (such as human beings) as well as artificial legalpersons (such as registered companies and association).7.3.2 The Origin of AccountabilityAccountability must have started with the dawn of man. Thus, Adamand his wife, Eve, were to manage the resources placed in their care inthe Garden of Eden. The full account of the biblical story is available inGenesis 2, verses 15 to 25, Genesis 3, verses 1 to 13. The couple failed149