Lecture 28 (Ethical Issues) Flashcards Preview

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Flashcards in Lecture 28 (Ethical Issues) Deck (9)
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1
Q

What may your personal ethics be affected by?

A

Family, culture, religion and peers.

2
Q

What are the two approaches a business can have to ethical standards?

A

Have a code against which performance can be measured.
OR
Deal with issues as they arise, therefore allowing flexibility.

3
Q

JUSTICE APPROACH

A

Justice and fairness are paramount. Principles should be laid down and followed without exception.

4
Q

CARE APPROACH

A

Equitable approach based on subjective ad hoc decisions based on an individual’s personal circumstances.

5
Q

What does research suggest about the difference of ethical approaches between men and women?

A

Men more justice

Women more care.

6
Q

What type of ethical decisions can an accountant face?

A
  • Manipulating profits to affect:
  • Tax payable
  • Bonus figure
  • Product of employer is potentially dangerous but expensive to fix so no action to be taken.
  • Use of confidential information for personal gain.
  • Gifts from/to clients/customers.
7
Q

What ethical assistance is there for businesses?

A
  • Professional bodies produce codes and have help line to discuss ethical issues such as:
  • Relationship with clients
  • Type of work that can be offered
  • Standards of behaviour expected
  • Dealing with conflicts of interest
8
Q

IFAC

A

International Federation of Accounts

have an ethics section called the International Ethical Standards Board for Accountants.

9
Q

Why are ethics important to a business?

A

Important to businesses as they are accountable to society and a branch in ethical conduct can have serious implications for the future.