S1 - Preamble
S2 - Partnerships
S3 - Governance
S4 - Organizational Integrity
S5 - Finances
S6 - Fundrainsing & Communications to the Public
S7 - Management Practices & Human Ressources
S8 - Acheiving Compliance
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Summary
Finances
S 5.4
Raison d'être
Indicators of Compliance
Ethical Questions to ask
Examples of good ethical practice
Examples of poor practice
  1. The Organization shall ensure that it (and if applicable, its affiliates) manage its funds prudently. If the Organization has assets available for investment, it shall have and follow an investment policy.

Why
Why

This standard relates to requirements for responsible management practices that are included in various sections of the Code of Ethics and the Standards. Specifically, it refers to item 1.7 in the Preamble to the Code that calls on members to “act in ways that enhance public trust”.

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Indicators of Compliance
Indicators of Compliance
  • The Organization has an investment policy that has been approved by its governing body.
  • Auditors are aware of this policy so that they can assess compliance on a yearly basis.
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Ethical Questions to ask
Ethical Questions to ask
  • Is the Organization ensuring that potential gains from investment are not outweighed by risks of investment vehicles?
  • Has the Organization adopted ethical investment criteria?
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Examples of good ethical practice
Examples of good ethical practice
  • Having a policy to guide the use/investment of unappropriated surplus funds (e.g. to ensure the Organization can cover its obligations).
  • Getting professional advice on risk levels related to the Organization’s investments and documenting these sessions for the governing body and auditors.
  • Monitoring trends in the investment market and taking corrective action as needed and in a timely manner.
  • Setting a limit on the amount of assets to be invested to ensure that the Organization’s daily cash flow is not jeopardized.
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Examples of poor practice
Examples of poor practice
  • Using vague language in financial reports to avoid detection by the governing body or the public of losses that result from poor investments. 
  • Investing in companies that are notorious for poor ethical practices.