This lesson provides an in-depth examination of the IMA’s Statement of Ethical Professional Practice, the ethical framework for management accountants in the USA and a globally recognised standard. It covers the four overarching principles and the four standards of conduct that guide professional behaviour.

• The Importance of Ethics in Management Accounting: Ethics is instrumental to the profession because accountants’ primary responsibility is to the public interest, in addition to the profession and their company . The IMA established its Committee on Ethics to ensure that every aspect of the organisation is guided by and informed of ethical concerns relevant to the organisation and the profession .

• IMA’s Overarching Ethical Principles: The IMA Statement of Ethical Professional Practice includes overarching principles that express the values of the profession: Honesty, Fairness, Objectivity, and Responsibility . Members shall act in accordance with these principles and encourage others within their organisations to adhere to them .

• Standard I: Competence: Members have a responsibility to:

  • Maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills

  • Perform professional duties in accordance with relevant laws, regulations, and technical standards

  • Provide decision support information and recommendations that are accurate, clear, concise, and timely

  • Recognise and help manage risk 

• Standard II: Confidentiality: Members have a responsibility to:

  • Keep information confidential except when disclosure is authorised or legally required

  • Inform all relevant parties regarding appropriate use of confidential information and monitor compliance

  • Refrain from using confidential information for unethical or illegal advantage 

• Standard III: Integrity: Members have a responsibility to:

  • Mitigate actual conflicts of interest and communicate with business associates to avoid apparent conflicts

  • Refrain from engaging in any conduct that would prejudice carrying out duties ethically

  • Abstain from engaging in or supporting any activity that might discredit the profession

  • Contribute to a positive ethical culture and place integrity of the profession above personal interests 

• Standard IV: Credibility: Members have a responsibility to:

  • Communicate information fairly and objectively

  • Provide all relevant information that could reasonably be expected to influence an intended user’s understanding

  • Report any delays or deficiencies in information, timeliness, processing, or internal controls

  • Communicate professional limitations or other constraints that would preclude responsible judgment or successful performance 

• Resolving Ethical Issues: When faced with unethical issues, members should follow established organisational policies, including anonymous reporting systems if available. If policies do not exist, they should consider discussing the issue with their immediate supervisor or escalating to higher management. The IMA offers an anonymous Ethics Helpline to members for confidential consultation on ethical dilemmas . Failure to comply with the standards may result in disciplinary action .