CH 3 Ethical Dilemma
CH 3 Ethical Dilemma
CH 3 Ethical Dilemma
5. Religion
6. Culture
Culture is a pattern of behaviors and values that are transferred from one
generation to another, those that are considered as ideal or within the acceptable
limits. No wonder therefore that it is the culture that predominantly determines
what is wrong and what is right. It is the culture that defines certain behavior as
acceptable and others as unacceptable.
Human civilization in fact has passed through various cultures, wherein the moral
code was redrafted depending upon the epoch that was. What was immoral or
unacceptable in certain culture became acceptable later on and vice versa.
During the early years of human development where ones who were the strongest
were the ones who survived! Violence, hostility and ferocity were thus the
acceptable. Approximately 10,000 year ago when human civilization entered the
settlement phase, hard work, patience and peace were seen as virtues and the
earlier ones were considered otherwise. These values are still put in practice by the
managers of today!
Still further, when human civilization witnessed the industrial revolution, the ethics
of agrarian economy was replaced by the law pertaining to technology, property
rights etc. Ever since a tussle has ensued between the values of the agrarian and
the industrial economy!
7. Law
Laws are procedures and code of conduct that are laid down by the legal system of
the state. They are meant to guide human behavior within the social fabric. The
major problem with the law is that all the ethical expectations cannot be covered
by the law and specially with ever changing outer environment the law keeps on
changing but often fails to keep pace. In business, complying with the rule of law
is taken as ethical behavior, but organizations often break laws by evading taxes,
compromising on quality, service norms etc.
Would the action taken be well received if it was on the front page of a
newspaper? While this should be a consideration, keep in mind that often the
right decision may be the least popular in public opinion.
If the decision is job-related, would the agency or company you work for still hire
you if it knew you would make this decision? If the answer is yes, then this
should give weight to the decision you are about to make.
If the decision is not job-related, would the agency you would like to work for still
hire you if it knew all the facts surrounding the dilemma and the decision you
would make? If the answer is yes, then this should give weight to the decision
you are about to make.
Conclusion
Would these ethical issues affect the reputation of the accountancy profession?
What are the threats to compliance with the fundamental principles of:
Integrity
Objectivity
Confidentiality
Professional behaviour
Have you considered the following threats?
Self interest
Self-review
Advocacy
Familiarity
Intimidation
If so, are the treats to compliance with the fundamental principles clearly
insignificant?
Are there safeguards which can eliminate or reduce the threats to an acceptable
level? Safeguards can be created by:
Work environment
Individual
Does your organisation's policies and procedure provide guidance on the situation?
How can you escalate concerns within the organisation? Who should be involved,
in what role and at what stage?
At what point should you seek guidance from external sources such as ICAEW
Test your proposed course of action. Ask yourself the following questions:
Have all the consequences associated with the proposed course of action been
discussed and evaluated?
Is there any reason why the proposed course of action should not stand the test of
time?
Would the suggested course of action stand to scrutiny from peers, family and
friends?
When faced with an ethical issue, it may be in your best interests to document your
thought processes, discussions and the decisions taken. Written records will be
useful if you need to justify your course of action.