Ethical Principles: Ethics can be approached by :

 Consequentialism and
 Duty(deontological approach).

Consequential ethics: focus on actual or intended results. We choose the actions that bring about
the best outcomes.
-Egoism: we should always act to maximise our own individual interests
Utlitarianism: We should act to maximise the happiness of all affected by the action.
Non-consequential ( duty based approach –deontological) ethics focus on something other than
results such as the intent or the inherent nature of act.
Motivation and principle is important. Action is based on Moral.
3 maxims or tests of action , to know if action is morally right and all these 3 must be satisfied.
1. Consistency – Action is right if everyone can follow the same principle
2. Human dignity- Treat humanity as an end, never as a means. Humanity inside you
and inside people
3. Universality- would others or external parties, view the action as moral or
suitable.
Absolutism Versus Relativism In Ethics:
Examples of Ethical Problems facing Managers:
There are 2 types of ethical problems
1. Overt- Bribary , theft, sabotage etc
2. Covert- Complex and not transparent, defy ethical solutions.

The most common ethical issues in business involve Employment practices, human rights,
environmental regulations, corrupiton and moral obligation of mutinational companies.
Accounting scandals: An accounting scandal occurs when accountants or senior executives alter
accounting records for personal benefit.
Accounting information is used inside and outside of the business to make decisions. When
accouting irregularities are uncovered, a forensic accoutnant investigates legal and finanical
documents to find evidence of tampering
Embezzlement: A type of accouting fraud, happens when an accoutant or senior executive
creates false accounts and redirects money into them for personal gain.
Business owners rely on outside accountants, auditors, to check nad report on the validity of
financial records.

Promotion of Ethical Behaviour:

1. Openess
2. Trust
3. Honesty
4. Respect
5. Empowerment
6. Accountability

Corporate Code of Ethics:

1. Identify the ethical issues
2. Determine the affected parties and identify their rights
3. Determine the most important rights
4. Develop alternative courses of action
5. Determine the likely consequences of each proposed course of action
6. Assess possible consequences including estimation of the greatest good for the greatest
number
7. Determine whether rights framework would cause any action to be eliminated
8. Decide on appropriate course of action.
9. Emphaisis on Oranisational values
10. Guidance to Employees and directors
11. Risk reduction thorugh avoidance of legal and regulatory problems.
12. Good public relations and reputation.