In: Accounting
Please provide a one page summary of your key learnings chapter 1 Ethical Reasoning: Implications for Accounting
Ethical reasoning is the ability to identify, assess, and develop ethical arguments from a variety of ethical positions.” For the purposes of this application, it may be useful to think of an ethical reasoning course as one that integrates ethical questions into the intellectual work required in the course.
Ethical Reasoning: Implications for Accounting.
Integrity: The Basis for Ethics in Accounting
Means acting on principleTraces back to Socrates, Plato and
AristotleIs the foundational virtue of the ancient Greek philosophy
of virtue Helps withstand pressures that may lead to subordination
of judgmentIs a “must have” for accountants
Religious and Philosophical Foundations of Ethics- A version of the Golden Rule appears in each of the world’s religions Ethics can be traced back to ancient Greek philosophy“What is the best sort of life for human beings to live?”Greeks believed the ultimate goal of happiness was to attain some objectively good status: the life of excellence
Ethics, Morals, ValuesEthics -derived from the Greek word ethikos (character), deals with the concepts of right and wrong; standards of how people ought to act.Norms, Values, and The LawMorals, derived from the Latin word moralis, deals with manners, morals, character.Ethics and morals are essentially the same.Values are basic and fundamental beliefs that guide or motivate attitudes or actions
Ethical RelativismTheory- that holds that morality is relative to the norms of one’s cultureIf correct, there can be no common framework to resolve any moral disputes between different societiesTheory is rejected by most ethicistsSocieties may differ in their application of fundamental moral principles but agree on the principles.
Six Pillars of Character-Trust worthiness, Respect , Responsibility ,Fairness, Caring, Citizenship
Six Pillars of Character-Trustworthiness: being honest, acting with integrity, being reliable, and exercising loyalty in dealing with others.Respect: treating every individual with dignity. The golden rule encompasses respect for others through notions such as civility, courtesy, decency, dignity, autonomy, tolerance and acceptance.Responsibility: the ability to reflect on alternative courses of action, persevere and carry out moral action diligently.
Six Pillars of Character
Fairness: treating others equally, impartially, and openly. Michael
Josephson points out, “fairness implies adherence to a balanced
standard of justice without relevance to one’s own feelings or
inclinations.”Caring: The essence of caring is empathy. Empathy is
the ability to understand, be sensitive to, and care about the
feelings of others. Caring and empathy support each other and
enable a person to put herself in the position of another. This is
essential to ethical decision making.Citizenship: Josephson points
out that “citizenship includes civic virtues and duties that
prescribe how we ought to behave as part of a community.” An
important part of good citizenship is to obey the laws, be informed
of the issues, volunteer in your community, and vote in
elections.
Reputation Reputation: overall quality or character in the opinion of the public towards a person or group or organization. It is an important factor in many professional fields, including accounting.
AICPA Code of Conduct The code is divided into two
sections:
Principles: are aspirational statements that form the foundation
for the Code’s enforceable Rules of Professional Conduct.
Principles are expectations but are not legally binding. The
principles of professional conduct include: Responsibilities Public
Interest Integrity Objectivity and Independence Due Care Nature and
Scope of Services Rules: enforceable applications of the
Principles
Modern Moral Philosophies
A few of the philosophies applicable to the study of accounting
ethics include:Teleology, Egoism ,Enlightened
Egoism,Utilitarianisml, Deontology, Rights Theory, Justice
Virtue
Egoism and Enlightened Egoism
Consequences for individual“Do act that promotes the greatest goog
for oneself.”Enlightened egoists, Allow for the well-being of
others ,Help achieve some ultimate goal for self,Self-interest
remains paramount
Utilitarianism Bentham and Mill
Consider impartially the interests of all persons affected by an
action and pick the greater benefit“Greatest good to greatest
number”Difficulties Impossible to foresee all consequences
Consequences difficult to measure Types Act-Utilitarian
Rule-Utilitarian
Deontology Derived from Greek meaning duty- Moral norms establish basis for action, Based on rights of individuals and motivation rather than consequences, Concerned with means rather than end result, Rights Theory, Motivated by sense of obligation, Universality of moral actions, People should never be a means only, Justice , Each permitted the maximum amount of basic liberty compatible with others.Social and economic inequalities are allowed only if benefit all.
Virtue Ethics Greek philosophers, Plato and Aristotle
Less emphasis on learning rules,Stress importance of developing
good habits of character, Cardinal virtues, Wisdom, Courage,
Temperance, Justice
Institute of Management Accountants (IMA)
PrinciplesHonestyFairnessObjectivityResponsibilityStandardsConfidenceConfidentialityIntegrityCredibility
IMA (cont) Resolution of Ethical Conduct
Discuss issue with immediate supervisor or higher authority.Clarify
ethical issues with an IMA Ethics Counselor or other impartial
advisor Consult attorney.