Week 10

Question 1

What are ethics?

Answer 1

A set of moral principles that govern a person’s behaviour or the conducting of an activity.

Your personal ethics may be affected by family, culture, religion and peers.

Question 2

What might a businesses ethics be influenced by?

Answer 2

●Affected by national and international concerns;
●Organisational concerns;
●Ethics of the individuals working there.

Question 3

What are ethical standards in business?

Answer 3

●Have a code against which performance can be measured.
OR
●Deal with issues as they arise, therefore allowing flexibility.

Question 4

What is the justice approach to ethics?

Answer 4

Justice and fairness are paramount. Principles should be laid down and followed without exception.

Question 5

What is the care approach to ethics?

Answer 5

Equitable approach based on subjective ad hoc decisions based on an individual’s personal circumstances.

Question 6

What type of ethical decisions can an accountant face?

Answer 6

●Gifts from/to clients/customers
●Use of confidential information for personal gain

●Manipulating profits to affect:

• Tax payables
• Bonus figures

Question 7

What type of ethical issues are helped by the professional bodies and codes produced?

Answer 7

●Relationship with clients
●Type of work that can be offered
●Standards of behaviour expected
●Dealing with conflict of interests

Question 8

Why is ethics important to businesses?

Answer 8

Important to businesses as they are accountable to society and a breach in ethical conduct can have serious implications for the future

●Using cheap labour increases profits but it is morally indefensible. E.g. customers boycott products where child labour is used.