Question

In: Accounting

How can our understanding of ethical issues underpin management decisions

How can our understanding of ethical issues underpin management decisions

Solutions

Expert Solution

Ethical choices are decisions made by individuals who are responsible for the consequences of their actions.

The Major elements to be understood are as follows:

1. Responsibility : Responsibility means that you accept the potential costs, duties, and obligations for the decisions you make.

2. Accountability : It means that mechanisms are in place to determine who took responsible action, who is responsible. Systems and institutions in which it is impossible to find out who took what action are inherently incapable of ethical analysis or ethical action.

3. Liability : Liabilty extends the concept of responsibility further to the area of laws. Liability is a feature of political systems in which a body of laws is in place that permits individuals to recover the damages done to them by other actors, systems, or organizations.

4.Due Process : Due process is a related feature of law-governed societies and is a process in which laws are known and understood and there is an ability to appeal to higher authorities to ensure that the laws are applied correctly.

These basic concepts form the underpinning of an ethical analysis of information systems and those who manage them.

When confronted with a situation that seems to present ethical issues, the following five-step process should help.

1. Identify and describe clearly the facts.

2. Define the conflict or dilemma and identify the higher-order values involved.

3. Identify the stakeholders.

4. Identify the options that you can reasonably take.

5. Identify the potential consequences of your options.


Related Solutions

Ethical issues in management accounting Ethical understanding is a key learning outcome for accounting students. Explain...
Ethical issues in management accounting Ethical understanding is a key learning outcome for accounting students. Explain what is meant by each of the following fundamental ethical principles for accountants: integrity, objectivity, professional competence, confidentiality, and professional behaviour. What does being ethical mean to you? How could ethics be an issue in a management accounting environment?
How does culture affect our consumption and ethical decisions and responsibilities?
How does culture affect our consumption and ethical decisions and responsibilities?
What ethical issues can arise in the area of management control? (1,000words essay)
What ethical issues can arise in the area of management control? (1,000words essay)
Understanding of professional responsibilities, ethical theories, legal and social issues. Understanding of cyber security threats and...
Understanding of professional responsibilities, ethical theories, legal and social issues. Understanding of cyber security threats and corresponding procedures to mitigate these threats. Understanding of risk management, security policies and audit procedures
Ruth Benedict discusses how changes in a culture’s understanding of “normal” can affect our understanding about...
Ruth Benedict discusses how changes in a culture’s understanding of “normal” can affect our understanding about what is morally acceptable. Briefly discuss how what we conceive of as murder might not be wrong in another culture.
Discuss how world history enhances our understanding of key 21st century issues such as international economics,...
Discuss how world history enhances our understanding of key 21st century issues such as international economics, global security, health, the environment, gender relations, democratization, and cultural globalization. (Ch. 32)
how systems dynamic modelling can be used to improve our understanding of the ways in which...
how systems dynamic modelling can be used to improve our understanding of the ways in which an organization's performance is related to its internal structure and operations policies, including those of customers, competitors, and suppliers and then to use that understanding to design high leverage policies for success?
how systems dynamic modelling can be used to improve our understanding of the ways in which...
how systems dynamic modelling can be used to improve our understanding of the ways in which an organization's performance is related to its internal structure and operations policies?
a. What are Toyota ethical and diversity issues? b. How would Toyota ethical and diversity issues...
a. What are Toyota ethical and diversity issues? b. How would Toyota ethical and diversity issues be addressed?
This week we continue to build our understanding of ethical accounting practices by examining the intersection...
This week we continue to build our understanding of ethical accounting practices by examining the intersection of business and accounting practices by examining the ethical responsibilities of accountants when encountering company procedures affecting the accounting function, and its related responsibilities. Considering differing bases for accounting (cash, accrual) available, Discuss the legal rights, responsibilities, and liabilities involved when the accounting function is asked to take action(s) that may be inconsistent with the accounting basis that the company has traditionally used. Does...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT