In: Accounting
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
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. |