Question

In: Accounting

Professionals will inevitably face decisions in the workplace that may have a variety of consequences, including...

Professionals will inevitably face decisions in the workplace that may have a variety of consequences, including ethical consequences. Such a decision can either be beneficial or detrimental to the interests of other people, therefore it is important that decision-makers ensure that they make decisions in a morally-responsible manner.
REQUIRED:
2.4 Name and briefly explain the four (4) criteria against which a decision has to be assessed to judge its moral soundness. (8)marks

Solutions

Expert Solution

Decision-making is part and parcel of one's professional life, where a person is faced with innumerable occasions that compels him to decide this way or the other.
More than decision, some bring in ,ethical dilemma,ie. Whether the decision is morally sound or not.
A few example may be decisions involving selecting /rejecting a supplier,sales/marketing strategy to be adopted by the company, recruitment of employees & fixing their remuneration & the list is endless.
Ethics in any walk of life, is that which when put into action , will not be harmful to or against anybody & that which will not bring any disrepute to the practitioner or the person who takes the decision.
Ethics is something that does harm to none.That is fair & just to the society ,in general & acceptable to all & that against which nobody can raise a pointing finger.
That said about ethics, business decisions that are very essential for running a business successfully ,naturally needs to be, highly ethical & taken in a morally responsible way.
So, to judge the moral-soundness of a decision of a professional , all the following 4 questions/criteia /tests need to be raised & satisfied:
1.Legality test--.Is it legal?
The manager has to satisfy himself , that the decision he is about to take , respects& complies with the laws of the land & will stand in a court of law,if in case ,put to test, by any dissenting voice.
2..Ethical standards test---Is the decision commensurate to the company's past & present standards/code of ethics?
ie. The manager has to ensure, that the decision is in line with   & not in anyway, contradicting the company's internal written code of conduct/ethics , in this regard--such as steps to be followed either in choosing a supplier or recruiting a new person , so that there is no bias or favouritism--- & no intermediary steps are missed wantonly.
3..Fairness test--Fair to all connected parties?
Ie. The decision needs to be tested & answered if the decision , when implemented will be just & fair to those who will be affected by it.
4. Disclosure test--- Can it be disclosed in public ?
ie. The manager should have no reservation about disclosing /discussing the decision in public and also should be comfortable enough to defend the decision arrived at . Such a decision ,will naturally be ethically sound & morally justifiable.

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