- Ethics is the analysis of right and wrong, and associated responsibility.
- Business ethics is the application of ethical values to business behaviour.
What is “right” or “wrong”?
1 The consequences
2 The motivation of the parties concerned
3 Guiding principles
4 Duties
5 Key values
Why business ethics is important?
Determining whether a decision is ethical :
- Is it legal?
- Is it contrary to a published code of ethics?
- Is it a fair use of power?
- Would you be embarrassed if you had to justify the decision to your mother
What is profession?
- the mastering of specialised skills during a period of training
- governance by a professional association
- compliance with an ethical code
- a process of certification before being allowed to practise
Accountant’s role in promoting ethical behaviour
Accounting issues :
- Creative accounting
- Directors’ pay arrangements
- Bribes
- Insider trading
Production issues :
- Should the company produce certain products at all?
- Effects on the environment
- Test products on animals?
Sales and marketing issues :
- Price fixing and anti-competitive behaviour
- Target advertising at children?
- Advertised by junk mail or spam mail.
Personnel issues :
- discrimination
- fair balance of power between employer and employee
- safety and health of the workplace
Codes of ethics and codes of conduct
The policies can either be broad generalisations or can contain specific detailed rules.
Example : IFAC Code of Ethics & ACCA Code of Ethics
By : Yichun
