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

FINANCIAL REPORTING AND ETHICSFirms display responsibilities towards their competitors byengaging only in ethical competition which ultimately yieldquality products and services. Co-operation is fostered by notspreading damaging information, otherwise called ‘de-marketing,’about each other.(d)GovernmentGovernment is the greatest ‘player’ in the economy. It has toprovide good roads, excellent health facilities, schools andsecurity for the citizens. Government is expected to generateemployment opportunities and create the atmosphere for theinflows of foreign investments through impeccable and enduringcorporate governance. It has to manage the country’s economydiligently with the highest degree of prudence, probity,transparency and accountability. A responsible governmentshould be a listener and borrow freely from the logic and reasonbehind constructive criticisms. From time to time, governmenthas to submit stewardship for appraisal. Where government “laysgood example in the society” the various other stakeholderswhich include those discussed earlier will collaborate to makeliving near perfection in the society.11.8 GLOBAL DEVELOPMENTS AND REGULATORY FRAMEWORK FORCORPORATE AND ENTERPRISE GOVERNANCEOrganisations over the world such as the United Nations have been clamouringfor improvement in corporate behaviour. Member States of Organisation ofEconomic and Cultural Development (OECD) and such countries as Brazil andChile have put their signatures on a new international code of standardbehaviour relating to international models and prescriptions to be followedby the multinational companies. The collapse of big corporate entities as EnronCorporation in the United States of America and others such as Polly Peck andMaxwell Communications in the United Kingdom had been traced to largescale fraud committed by their directors and auditors.The agitation for the installation of sound corporate governance arises fromthe expectation that it will result in companies being diligently directed bythe boards and management - the trustees. The strategies mapped out aredesigned to bring in sanity and accountability in corporate governance.Consequently in the United Kingdom, just as in Nigeria, company’s legislationhas led to the establishment of audit committees. Indeed, independentcommittees have generated series of reports which include the following:224