This assignment will talk about three main objectives which are, important of corporate governance and social responsibility of three companies in Oman which are Shall Company, Bank Sohar and Galfar Company. Finally, it will talk about the code of conduct and ethical values in managerial accounting practices.
Importance of Corporate Governance:
* The argue against corruption, which everyone now knows is the extent to which it hinders growth.
* Disclosure of financial information can reduce the cost of an entity’s capital.
* If investors are not guaranteed a return on their investments, the required flow of funding will be discontinued. Without financial flows, enterprises will not be able to realize the potential for growth.
* Trust is developed in institutions that apply governance, which helps to attract investments both foreign and domestic helps to reduce the flight of domestic capital.
* Increased availability of finance and access to cheaper sources of finance, which increases the importance of governance, especially for developing countries.
* To protect the shareholders of these companies and to facilitate the exercise of their rights.
* Equal treatment for all shareholders, whether national or foreign, and all shareholders should be given the opportunity to obtain effective compensation for the violation of their rights.
* Ensure proper and timely disclosure of all important corporate matters, including financial position, performance and equity.
* To ensure the strategic direction and guidance of the company, effective control of the board of directors on the management of the company, and accountability of the board of directors for its responsibility to the company and shareholders.
Corporate social responsibility initiative by the firms in Oman:
* Shell Company
In Oman the (Shell) Company makes good example of social responsibility which are Shell Oman allocates an annual amount to social investments and has developed a strategy to undertake a series of initiatives aimed at raising awareness and contributing to the prosperity of the local community, focusing on the following strategic axes: traffic safety, environment and community development. Furthermore, Shell Company in Oman get very good respect from the Omani people.
* Bank Sohar
In Oman the Bank Sohar have good example of the social responsibility which is Sohar Bank launched the Sohar Al-A’iTa Social Responsibility Award for 2018, with the aim of promoting education, training and empowering local communities by focusing on sustainable aspects of knowledge. The campaign was launched this year with the support of the Omani Association of Friends of the Elderly to hold two workshops for the Society’s members and volunteers. Now in this day the bank Sohar become very famous because help the poor people in the Oman
* Galfar Company
Galfar Company is committed to social responsibilities, training, employment opportunities and opportunities for Omanis at all levels. It is promoters of company and major shareholders in medical colleges, Engineering colleges and training institutes to train Omani citizens. Galfar Company seeks to be a leader in the Omanaization program, thus maintains high levels of Omanization. Galfar efforts praised to achieve Omanization goals in the country by the Government of the Sultanate of Oman. The Galfar Company become one of the biggest company in Oman and become very famous because help the poor people in Oman and outside Oman.
Conduct and Ethical values in managerial accounting:
The line of work of secretarial is within dire require of persons who hoist their specialist stage from side to side their cadres in addition to holders of the sign of secretarial. We accountants who practice the vocation have got to adhere in the direction of the principles, behaviour, besides to ethics of the profession for the reason that for each line of work ethics and conduct, the accountant have to be ethical and conduct the profession, Because if the accountant over the principles and ethics and the conduct of his profession, who will work and adhere to non-professional that the non-specialist so the profession of accounting ethics and conduct must be the accountants in all parts of the world to abide by otherwise was a violation of the principles and professional behaviour of the profession of accounting The basic principles Ethics in addition to behaviours of the accounting vocation are as follows: –
The Secretariat is a significant element in addition to standard in several work. The accountants have to be truthful and honest within performing his work absolutely because the Secretariat is something that is not easy.
2. Objectivity and independence:
The objectivity and self-government is the basis of impartiality in addition to fairness. The accountant have to be capable and be not quick within issuing decision otherwise judgments in anticipation of subsequent to the corroboration in addition to reflection and the compilation of enough evidence and evidence must be independent and absent from the frame of mind and whims of the management in addition to its power. Consequently, the external auditor
has a great role, Independent and completely away from the whims and opinions of the management of the company is the one who takes his rule and give his opinion as a reviewer independently and objectively and impartiality or non-independence and must be a comprehensive opinion of what he checked without any confusion was.
3. Professional competence in addition to due assiduousness:
It is the responsibility of the accountant in the direction of carry out a certain height in addition to competence condition assigned to audit the accounts of a company and usually measured this height in addition to effort complete according in the direction of the capabilities of the standard human being and if the auditor did not find an apology not to do that task God’s mercy is a person knew as much if the accountant must adhere to the principle Professional competence and due diligence.
The principle of confidentiality is necessary and imperative necessity in the work. There must be confidentiality in the work, otherwise there will be a great loss of work, especially in the competitive atmosphere, so be careful about the company’s interest and not disclose its secrets anywhere. The lack of confidentiality in the work leads to violation of the principles of accounting profession.
5. Professional behaviour:
If the accountant is in conformity with the above, it is reflected in his behaviour, the behaviour of the accountant and his qualities if good, it leads to professional abuse, the accountant have got to have those good qualities in addition to good behaviour, which works in the direction of raise the stage of accounting profession.
6. Technical standards:
The accountant have got to stick in the direction of the professional work according to the scientific as well as professional principles related to the profession of accounting issue with the body otherwise the specialized organization of accountants in addition to must comply with the instructions of the user or employer as extended as they perform not conflict with the wants of honesty, objectivity in addition to self-government.
In this assignment talked about three important objectives which are first the corporate governance, second talked about the company in Oman which is make the social responsibility and choose three Companies which are Shall Company, Bank Sohar and Galfar Company. Finally, it talked about the code of conduct and ethical values in managerial accounting practices.
5. Governance professional in Canada. (2018). what is Corporate Governance. http://www.cscs.org/About-corporate-governance.
2. Business dictionary. (2017). Definition of corporate governance.
6. Investopedia.(2018). What is ‘Corporate Governance’. https://www.investopedia.com/terms/c/corporategovernance.asp.
8. Shall Oman.(2015). CORPORATE SOCIAL RESPONSIBILITY. https://www.shelloman.com.om/en_om/sustainability/corporate-social-responsibility.html.
1. Bank Sohar.(2017). ‘Sohar Al Atta’ CSR Initiatives, Bank Sohar Supports Association of Early Intervention for Children with Disabilities. http://www.banksohar.net/Latest-News/News-Details/NewsID/3870.
4. Corporate Social Responsibility (CSR) ; Environment, Social, Governance (ESG) Metrics.(2018).Galfar engineering CSR.
7. Man power group.(2017). Code of Business Conduct and Ethics.
https://www.manpowergroup.com/ethics/code-of-business-conduct-and-ethicsContracting Company CSR / ESG Ranking.
3.CFA Institute.(2017). Code of Ethics and Standards of Professional Conduct.