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.


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