Cima Code of Ethics

Topics: Cadbury Report, Corporation, Combined Code Pages: 1 (351 words) Published: November 14, 2010
Corporate Governance is defined by the Cadbury Committee as ‘the system by which companies are directed and controlled’. It mainly considers the roles of effective controls, business competence and accountability of the management for the benefit of the stakeholders. Due to the size and economic impact, it is primarily involved with the management of public limited companies and observes the corporate structures thus aiding strategic decision-making. There are many types of organisations who produce value-based codes and implement them into their corporate policies. This is so that the standard expected from individuals is clear and that a valuable approach is made. Corporate Governance supplies internal regulations in relation to the director’s actions and therefore requires the directors to fully disclose their dealing to the shareholders and enable shareholders the control the director’s activities. This essay begins by examining the current system of Corporate Governance in England which is largely contained in the Combined Code (2003). Followed by this, it will discuss how the correct balance between the need of companies to maximise profitability and their duty to conduct their business ethically is maintained. In response to corporate failures like Maxwell Communications, there are various voluntary codes in England which have been amended throughout past years. At present, the Combined Code on corporate governance is mainly used. This is based on and represents the three previous corporate governance reports which include Cadbury, Greenbury and Hampel. The Hampel Report 1998 reflected on the Cadbury and Greenbury Report. The Cadbury Report 1992 recommended that for companies to comply with the codes of best practice and continue to be listed on the Stock Exchange, it was required for all companies in the UK to report on how they used Combined Code in their annual reports. On the other hand, the Greenbury Report 1995 was published due to the issue of...
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