10. Business Ethics

Question 1

What is ethics ?

What are factors to consider ?

Answer 1

System of moral principles ( concept of right and wrong)

Factors- consequence, motivation, principles, key values

Question 2

Consequentialism argues that_____

Answer 2

Result determine if action is ethical

Individualism-if beneficial to individual

Utilitarianism-if beneficial to mass

Question 3

Relativism vs absolutism

Answer 3

R - no code, all depends on circumstances

A- some actions are inherently right or wrong

Question 4

Why ethics are important for org. ?

Answer 4

-drive profit
-assures investors
-good look for b.
-motivate employees

Question 5

Profession is characterised by__(5)

Answer 5

-skills mastered
-govern by org
-compliance with ethical code
-act in public Inter.(welfare of society)
-certification before practice

Question 6

What are fundamental principles (developed by IFAC and ACCA) ? (5)

Answer 6

-integrity (being truthful)
-objectivity (judgment not compromised)
-confidentiality (not disclosing info)
-prof.competence (having skills/knowledge)
-prof.behaviour (according to law/reg)

Question 7

Person to monitor ethics in org ?

Body established by ACCA to review breach?

Answer 7

Compliance officer

ACCA disciplinary committee

Question 8

What are ethical threats?(5)

Answer 8

Self interest(conflict of interest -objct.)

Selfreview(objectivity)

Familiarity(sympathetic to others interest - integrity/obj.)

Advocacy(acting for client-objct.)

Intimidation(under threats-objct.)

Question 9

What are safeguards against threats ?

Answer 9

-ethics training
-corp. governance requirements
-monitoring and disciplinary procedures
-professional standards set

Question 10

What are business safeguards ?
HOTTER

Answer 10

Honesty,openness,transparency,trust, empowerment (giving stakeholders ability to make decisions), respect( for gender etc)

Question 11

How to deal with unethical conduct ?

Answer 11

1. Consult within org.
2. Legal advice/prof. Body
3. Authorities