Ethics and Corporate Governance
| Module title | Ethics and Corporate Governance |
|---|---|
| Module code | BEF2012 |
| Academic year | 2025/6 |
| Credits | 15 |
| Module staff | Dr Shu Zhang (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 60 |
|---|
Module description
This module introduces key concepts in ethical behaviour and corporate governance within the investment industry, addressing challenges in maintaining high ethical standards. You will explore ethical dilemmas, governance frameworks, and decision-making models to navigate conflicts responsibly. The module develops skills to analyse decisions from multiple perspectives, enhance judgment, and mitigate unintended ethical consequences. Additionally, you will learn to identify governance failures and recognize factors that impair ethical decision-making, ensuring accountability and integrity in financial practice. By applying ethical principles and governance standards, you will be better prepared to uphold professional responsibility in investment management and corporate leadership.
Additional information:
Employability
This module develops practical skills in ethical decision-making, critical thinking, and problem-solving, which are essential for careers in investment management, compliance, and corporate governance. It aligns with professional standards, enhancing employability in finance-related roles.
Internationalisation
The module explores global ethical standards, such as the CFA Code of Ethics, and examines ethical dilemmas across different cultural and regulatory contexts, preparing students for work in international investment environments.
Sustainability
Students will consider the role of ethics in promoting sustainable investing and ESG principles. All learning materials are provided on ELE to support environmentally sustainable study practices
Research in Teaching
The module is informed by the convenor’s research in business ethics and corporate governance, incorporating recent studies on ethical decision-making and responsible investing.
Module aims - intentions of the module
Module Overview
The primary objective of this module is to introduce key concepts that foster a deep understanding of ethical behaviour in the investment industry and corporate governance. Students will explore the challenges of upholding high ethical standards, develop a structured framework for analysing corporate governance issues, and recognize the significance of ethical leadership in financial decision-making.
Students will become familiar with the Code of Ethics and Standards of Professional Conduct that CFA candidates must adhere to, as well as common corporate governance issues, including regulatory compliance, executive accountability, and shareholder rights. Additionally, students will gain an understanding of the necessity for elevated ethical standards in the investment sector, develop proficiency in the Global Investment Performance Standards, and critically examine governance challenges faced by firms and financial institutions.
Ethical and Governance Decision-Making
Students will analyse various ethical dilemmas within the investment profession and corporate governance, adopting a structured framework for ethical decision-making. This includes evaluating governance structures, regulatory frameworks, and fiduciary responsibilities that shape ethical conduct in financial and corporate decision-making. By applying this framework to real-world scenarios, students will develop the ability to assess multiple courses of action and determine the most ethical and governance-aligned decision.
The overarching goal is to apply an ethical decision-making framework that enables students to assess situations from multiple perspectives and articulate their rationale to a broad range of stakeholders, including investors, corporate boards, and regulatory bodies. This framework facilitates critical analysis of decisions within the context of conflicting interests, fiduciary duties, and corporate governance responsibilities, particularly in areas such as investment research, portfolio management, and corporate strategy. Students will refine their judgment, strengthen their decision-making skills, and proactively identify and mitigate ethical risks and governance failures.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Explain the fundamental concepts of ethics, including the principles and values that underpin ethical behaviour.
- 2. Identify the ethical responsibilities required by the Code of Ethics and Standards of Professional Conduct
- 3. Evaluate various challenges and obstacles that individuals might encounter in maintaining ethical behaviour.
- 4. Describe the principal-agent relationship and conflicts that may arise between stakeholder groups
- 5. Demonstrate familiarity with emerging topics in corporate governance
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 6. Apply a framework for ethical decision-making in the context of the investment industry
- 7. Recommend practices and procedures aimed at preventing violations of the Code of Ethics and Standards of Professional Conduct in professional settings.
- 8. Demonstrate understand the fundamentals and challenges in corporate governance
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 9. Develop effective written communication skills, together with analysis, argument and commentary.
- 10. Demonstrate the practical application of the Code of Ethics and Standards of Professional Conduct, basic insights of corporate governance to real-world situations involving issues of professional integrity.
Syllabus plan
- Ethics and Trust in the Investment Profession
- Code of Ethics and Standards of Professional Conduct
- Ethics applications
- Global Investment Performance Standards
- Corporate Governance in General
- Board of Directors and Ownership
- Emerging Topics in Corporate Governance
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 30 | 120 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching | 20 hours | Lectures |
| Scheduled Learning and Teaching | 10 hours | Seminars |
| Guided Independent Study | 120 hours | Reading and research activities |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Mock exam | 1 hour exam | 1-10 | Marks and feedback |
| Case studies | weekly | 1-10 | Discussion and Feedback in seminars |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 50 | 50 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Exam | 50 | 1 hour written exam | 1-10 | Marks and feedback |
| Applied exercise/Assignment | 50 | 2000 words | 1-10 | Marks and feedback |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Exam | 1 hour written exam | 1-10 | Reassessment period |
| Applied exercise/Assignment | Applied exercise/Assignment 2000 words | 1-10 | Reassessment period |
Re-assessment notes
Deferral – if you miss an assessment for certificated reasons judged acceptable by the Mitigation Committee, you will normally be either deferred in the assessment or an extension may be granted. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be required to submit a further assessment as necessary. If you are successful on referral, your overall module mark will be capped at 40%.
Indicative learning resources - Basic reading
- Ethical and Professional Standards, CFA® Program Curriculum Level I Volume I, CFA Institute.
- Corporate Issuers s, CFA® Program Curriculum Level I Volume I, CFA Institute
- D. Larcker and B. Tayan (2021). Corporate governance matters: A closer look at organizational choices and their consequences: Third Edition. FT Press, Pearson Education
Indicative learning resources - Web based and electronic resources
- ELE – Faculty to provide hyperlink to appropriate pages
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | BEF1015 or BEA1010 |
| Module co-requisites | None |
| NQF level (module) | 5 |
| Available as distance learning? | No |
| Last revision date | 27/02/2025 |
