Question

What is the ethical issue? What are your options? What are the possible consequences? What should you do? Address the IMA Professional Standards in your solution, be sure to reference THE IMA standards in the Reference Page

Answer 1

Ethical iissues iin ibusiness iare ia isituation iwhere ia imoral iconflict iarises iand imust ibe iaddressed. iIn iother iwords, iit iis ian ioccasion iwhere ia imoral istandard iis iquestioned.

Ethical iissues ioccur iwhen ia igiven idecision, iscenario ior iactivity icreates ia iconflict iwith ia isociety’s imoral iprinciples. iBoth iindividuals iand ibusinesses ican ibe iinvolved iin ithese iconflicts, isince iany iof itheir iactivities imight ibe iput ito iquestion ifrom ian iethical istandpoint. iIndividuals iare isubject ito ithese iissues iin itheir irelationships iwith iother iindividuals ior iin itheir irelationships iwith iorganizations iand isame igoes ifor iorganizations.

These iconflicts iare isometimes ilegally idangerous, isince isome iof ithe ialternatives ito isolve ithe iissue imight ibreach ia iparticular ilaw. iIn iother ioccasions, ithe iissue imight inot ihave ilegal iconsequences ibut iit imight igenerate ia inegative ireaction ifrom ithird iparties. iEthical iissues iare ichallenging ibecause ithey iare idifficult ito ideal iwith iif ino iguidelines ior iprecedents iare iknown. iFor ithis ireason, imany iprofessional iand iindustry iassociations ihave iethical icodes ithat iare idiscussed iand iapproved iby ikey iparticipants ito iprovide ia iuseful iframework ifor icompanies iand iindividuals ito imake iadequate idecisions iwhenever ithey iface ione iof ithese iconflicts.

For ithe ifirst itime iin i12 iyears, ithe iInstitute iof iManagement iAccountants i(IMA) ihas ireleased ian iupdated iversion iof iits iethics iguidance, iStatement iof iEthical iProfessional iPractice, iwhich itakes iinto iconsideration ichanges iin ithe imanagement iaccounting iprofession iand iwhistleblower iprovisions iin ithe iDodd-Frank iAct.

“Quite ia ibit ihas ichanged iin iour iprofession isince i2005 iand ithese iupdates iensure iour iethics iguidance ito imembers iand ithe iprofession istays icurrent iwith ion-the-job ipractice,” iCMA, iCPA, ichair-emeritus iof ithe iIMA’s iCommittee ion iEthics, isaid iin ia iprepared istatement. i“The inew iethics istatement iencourages iprofessional ijudgment iand ichallenges imembers ito idemonstrate iethical ibehavior iin ievery iaspect iof itheir ilives.”

The inewly iupdated iStatement iof iEthical iProfessional iPractice, iwhich iwent iinto ieffect ion iJuly i1, ireplaces ithe iprevious iversion ipublished iin i2005 iand ireflects ichanges iin ithe ibusiness iand iregulatory ienvironment, ias iwell ias ithe iglobalization iof ithe imanagement iaccounting iprofession. iIt’s irooted iin ithe iIMA’s iethical iprinciples iof ihonesty, ifairness, iobjectivity, iand iresponsibility.

The ispecific istandards irequirements iinclude:

1. iCompetence. iEnhance iknowledge iand iskills, iperform iprofessional iduties iin iaccordance iwith irelevant ilaws iand iregulations, iand imake irecommendations ithat iare iaccurate iand itimely, iand irecognize iand ihelp imanage irisk.

2. iConfidentiality. iInformation ishould ibe iconfidential iunless idisclosure iis ilegally irequired ior iauthorized, ilet irelevant ipeople iknow ithe iimportance iof iconfidential iinformation, iand irefrain ifrom iusing iconfidential iinformation iin iillegal ior iunethical iways.

3. iIntegrity. iMitigate iconflicts iof iinterest ior iwarn iof ipossible iconflicts iof iinterest, irefrain ifrom iengaging iin iany iconduct ithat iwould iprevent ithe iethical iperformance iof iduties, iavoid iactivities ithat iwould idiscredit ithe iprofession, iand iplace iethics iand iintegrity iof ithe iprofession iabove ipersonal iinterests.

4. iCredibility. iCommunicate ifairly iand iobjectively, iprovide iall irelevant iinformation ithat icould iinfluence ia iuser’s iinterpretation iand iunderstanding iof ithe ireports ior ianalyses, ireport iany idelays ior ideficiencies iin iinformation iaccording ito ilaw ior ithe iorganization’s ipolicies, iand icommunicate iprofessional ilimitations ior iother iconstraints ithat iwould iaffect iresponsible ijudgment ior isuccessful iperformance.

The irevised iguidance ialso inotes ithat iIMA imembers imay iface iunethical iissues ior ibehaviors, iwhich ishould ibe iaddressed iwith iactive iresolution. iThat irequires iconsideration iof ithe irisks iinvolved iand iwhether ithere iis iprotection iagainst iretaliation.

The istatement idescribes ispecific irequirements ifor imanagement iaccountants ito iheed iaccording ito ithe iIMA’s ifour istandards: icompetence, iconfidentiality, iintegrity, iand icredibility.

When ifaced iwith ian iethical iissue, iit iis iimportant ito iremember ithat ithere iis iseldom ionly ione icorrect iway iin iwhich ito iact. iThe iinformation iprovided ibelow, ihowever, iis iintended ias ia iguide ito iassist iyou ito imake iprofessional iand iethically iresponsible idecisions.

Solving iethical iproblems

1. Recognizing ithat ithere iis ian iethical iquestion:

a. requires iyou ito ithink iabout ihow iyou ishould iact iand iwhat iyou ishould ido iin ia igiven isituation

b. could irelate ito ia isituation iand/or ia idecision ithat iyou imake, iwhich icould ibe ipotentially idamaging ito ia iclient ior ia istakeholder

c. Could iinvolve ia ichoice ibetween ia igood iand ia ibad ioutcome i– ie.g. ia isituation iwhere iImmigration iNew iZealand iwould idecline iyour iclient’s ivisa iapplication ibecause iof icertain iinformation ithat ithe iclient ihas idisclosed ito iyou, ibut iof iwhich iImmigration iNew iZealand iis iunaware.

2. Understanding ithe ifacts iof ithe isituation:

a. Requires iyou ito iconsider ihow iyou ican ilearn imore iabout ithe isituation iincluding imaking ienquiries iand ifinding iadditional ifacts ito iensure iyou ihave ithe ibest ipossible iunderstanding iof ithe isituation.

3. Understanding ithe ioptions iavailable ito iyou:

a. requires iyou ito iidentify iand iunderstand ieach ioption iavailable ito iyou

b. Requires iyou ito itake iinto iaccount iany ilegislative irequirements, iprofessional istandards i(such ias ithe iCode), iimmigration ilaw iand iinstructions, ias ithese imay iinfluence iyour ioptions.

4. Understanding ithe iconsequences iof ithe ioptions:

a. requires iyou ito iwork iout ihow idifferent iparties iwill ibe iaffected iby ieach ioption i- ithese iparties ican iinclude ithe iclient, istakeholders iwithin ithe iNew iZealand iimmigration isystem, iyour iemployer iand iother iadvisers

b. requires iyou ito ibe iaware ithat iyour ioverriding iduty iis ialways ito iact iin ithe ilawful iand ilegitimate iinterests iof iyour iclient

c. requires iyou ito iask iyourself isome isearching iquestions, i

5. Testing ithe ioption iyou iplan ito itake:

a. requires iyou ito iconsider ithe ipossible ieffects iof iall ithe idifferent ioptions

b. requires iyou ito ireflect ion iand ithoroughly ireview ithe ioption ithat iyou iplan ito itake i– iin idoing iso, iyou ishould iask iyourself ithe ifollowing iquestions:

• · Am iI ifeeling iuncomfortable iwith iwhat iI iam iabout ito ido?
• · If iso, iwhy iam iI ifeeling iuncomfortable iabout ithis ioption?
• · Why iam iI imaking ithis idecision?
• · Would iI ibe ihappy iif ithis iwas idone ito ime?
• · Would iI ibe ihappy iexplaining ithis ito idifferent iparties iwithin ithe iNew iZealand iimmigration isystem iand iexplaining iwhy iI idid iwhat iI iam iplanning ito ido?

6. Explaining ithe ioption iyou ihave idecided ion ito ithose iaffected iand ito iother iinterested iparties:

a. requires iyou ito iact iin ia iway ithat iyour iclient, ior ianother iparty, imay inot ilike ior imay ifind idifficult ito iunderstand

b. requires iyou ito ibe iable ito ijustify iyour iactions iin ia ilogical iand istraightforward imanner i- iif iyou icannot iexplain iyour iactions, ithen iit iis imore ilikely ithat iyou iare iacting ion ithe ibasis iof iyour ifeelings ior iprejudices

c. Will ioften irequire iyou ito ihave ikept iexcellent irecords ithat inote ithe iessentials iof iwhat ithe iissue iwas, iwhat iyou idid ito iresolve iit, ithe ioptions iyou iconsidered iand ihow iyou icommunicated iyour idecision ito ithose iaffected.

7. Acting ion ithe ichosen ioption:

a. requires iyou ito iconsider ihow iyou iwill igo iabout iimplementing iyour idecision

b. Requires iyou ito iactually icarry ithrough iwith ithe iaction iyou idecided ito itake.

8. Reflecting ion ithe ioutcome:

a. Requires iyou ito iassess ihow iyour idecision iturned iout iand iwhat iyou ilearnt ifrom ithis ispecific isituation i- ito iobjectively ievaluate iwhat ihas ihappened iand iwhether ithe ioption iyou itook iworked.