The NINE CONCEPTS of     www.accaforstudents.com/P1     More resources at:     www.accaforstudents.com
What is “CONCEPT”?            Basic IDEA            Principles            THEMES            Generally accepted rule
Mnemonic:   Penang Indian FoodRestaurant In Jalan Tunku    Abdul   Rahman
The 9 Concepts•   Probity/honesty•   Integrity•   Fairness•   Responsibility•   Independence•   Judgment•   Transparency• ...
1. PROBITY                        HONESTY & TRUTH                        NOT MISLEADING                        STRONG MORA...
2. INDEPENDENCE   Independent              Vested InterestFree from conflict of         Influences       interest         ...
3. FAIRNESS EQUAL-HANDED   BALANCED    NO BIASRESPECT RIGHTS &     VIEWS         Stakeholders   Stakeholders
4. Responsibility    Clearly defined                 TrackRoles & Responsibilities        Credit & Blame                  ...
5. Integrity                     High MORAL VALUE              STRICT adherence to moral code                  High PROFES...
6. Judgement               DECISIONS – for the good of the org                 BALANCED EVALUATION                        ...
7. Transparency      Open & clear DISCLOSURE        Not CONCEALING info     Transparency vs. Confidentiality?             ...
Tajudin-Danaharta Case                        Owes RM589m                         Sue in court to                        r...
8. Accountability           ANSWERABLE for the actions/decisions                Can ask QUESTIONSIn all relationshipsCompa...
9. Reputation        “GOOD NAME” of the entity           Affects the business
More resources at:www.accaforstudents.com
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The 9 Concepts of Corporate Governance

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For ACCA students studying P1 Governance, Risk, and Ethics
Powerpoint slide notes on the 9 concepts of corporate governance.

Probity/honesty
Integrity
Fairness
Responsibility
Independence
Judgment
Transparency
Accountability
Reputation

More resources at www.accaforstudents.com

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The 9 Concepts of Corporate Governance

  1. 1. The NINE CONCEPTS of www.accaforstudents.com/P1 More resources at: www.accaforstudents.com
  2. 2. What is “CONCEPT”? Basic IDEA Principles THEMES Generally accepted rule
  3. 3. Mnemonic: Penang Indian FoodRestaurant In Jalan Tunku Abdul Rahman
  4. 4. The 9 Concepts• Probity/honesty• Integrity• Fairness• Responsibility• Independence• Judgment• Transparency• Accountability• Reputation
  5. 5. 1. PROBITY HONESTY & TRUTH NOT MISLEADING STRONG MORALITY“I cannot tell a lie” -Abraham Lincoln
  6. 6. 2. INDEPENDENCE Independent Vested InterestFree from conflict of Influences interest Connection/Relationship Decisions/actions
  7. 7. 3. FAIRNESS EQUAL-HANDED BALANCED NO BIASRESPECT RIGHTS & VIEWS Stakeholders Stakeholders
  8. 8. 4. Responsibility Clearly defined TrackRoles & Responsibilities Credit & Blame “It was not my responsibility”
  9. 9. 5. Integrity High MORAL VALUE STRICT adherence to moral code High PROFESSIONALISMACTIONS are honest, truthful, fair,independent, etc without compromise
  10. 10. 6. Judgement DECISIONS – for the good of the org BALANCED EVALUATION FACTORS
  11. 11. 7. Transparency Open & clear DISCLOSURE Not CONCEALING info Transparency vs. Confidentiality? Tajudin-Danaharta Case
  12. 12. Tajudin-Danaharta Case Owes RM589m Sue in court to recover the debt A government linked-Tan Sri Tajudin Ramli (former MAS CEO) company (GLC) February 2012 – out of court settlement But the terms of the settlement remain CONFIDENTIAL! There should be transparency for the interest of the public (the principal)
  13. 13. 8. Accountability ANSWERABLE for the actions/decisions Can ask QUESTIONSIn all relationshipsCompanies to InvestorsProfessionals to their valuesBusiness to stakeholdersetc
  14. 14. 9. Reputation “GOOD NAME” of the entity Affects the business
  15. 15. More resources at:www.accaforstudents.com

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