CODE OF ETHICS

for
Professional Accountants
MAY 30, 2014

Rosalinda Evangelista

Defining Ethics?
Doing the right thing!
Ethics must be a part of the fabric of an
effective organization. Members of our
community want and need clear
definitions of what is expected and
acceptable in an increasing complex
environment.

Why discusss ETHICS

1. Seen so many unethical things.
2. A highly ethical person.
3. They think Im unethical, and they
hope it will rub off on me.
--- Ill let you decide for yourself!

What is Ethics?
ethic Pronunciation: 'e-thik Function: noun
from Greek thos, Date: 14th century
1 the discipline dealing with what is good and
bad and with moral duty and obligation
2 a: set of moral principles or values
b : the principles of conduct governing an
individual or a group <professional ethics>

What is Ethics?
The word ethics comes from the
Greek root of ethos which in
ancient Greece meant the
persuasive appeal of ones
character.

So, what do we mean by Ethics?

Ethics is NOT this:

Instead, ethics embodies . . .

Standards of conduct that indicate how
one should behave based on moral duties
and virtues, which themselves are
derived from principles of right and
wrong.
So you need to know right and wrong
(values/principles), and then do it
(action).

We need to explore why good people

do unethical acts.
Every (professional), at least once in every case,
feels himself crossing a line he doesnt really
mean to cross. It just happens. -- Grishams
Rainmaker

The value is in knowing where the line

is drawn . . . before you cross it!

Why Study Ethics?

It will not make you more ethical.

It can help you in trying to decide what is the

right thing and giving you courage to do that
right thing.

So . . . why do good people

seem to do unethical acts?
Multiple roles: In different roles, we
sometimes hold ourselves to different
standards (e.g. home and work)
Courage: Sometimes it is hard to do what
you know is right

So . . . why do good
people seem to do
unethical acts?
Consensus: Sometimes we question our choices if
everyone else is acting differently.
Error: We all can make mistakes. Not necessarily
indicative of bad intent.

We all make mistakes, however...

Would you make the same decision
tomorrow?
Do you have the moral courage to look in
the mirror?

We can always set the ethical

bar higher!!!

What is the Right Thing?

What are the Rules?

What are the Tests?

Ethical Rules?

Is it legal and in
compliance with
policy?
Misuse of Assets
Use of Computing and
Network Resources

University-Provided
Wireless Phones and
Plans
Use of Copyrighted
Computer Software
Ethics in Public
Contracting, AntiKickback & Procurement

Ethical Rules?

Conflict of Interest in Policy & Procedure

Ethics in Research and Other Scholarly
Activities
Management Responsibilities/Employee
Expectations of Management

Ethical Rules?
Employee Conduct, Guidelines
Disciplinary Action - Non-Contract
Employees
Ethics, Conflict of Interest

Ethical Rules?
Is it fair?
Honest, truthful, responsible,
trustworthy, respected individual
Would it pass the test(s)?

Ethical Tests
1.Is It Legal? Is it Ethical?
I
Ethical - Legal
Ethical - Illegal
Unethical - Legal
Unethical - Illegal
I and IV are Easy Decisions
II and III are Difficult Decisions

II
III
IV

The Use Zones

Public employees have a duty to
conserve public resources and funds
against misuse and abuse.

Green Zone Official Duties (Ethical & Legal)

Yellow Zone Personal Use Under Limited

Circumstances
Red Zone Prohibited Uses (Unethical &
Illegal)

The Green Zone

Any Use that is Reasonably

Related to Your Official
Duties

The Yellow Zone

Personal Use OK Under Limited Circumstances

These are Really de minimis exceptions

There is little or no cost to the state
There is little to no interference with the
performance of official duties
The use is brief in duration and frequency
The use does not distract from the conduct
of business

The Yellow Zone

Personal Use OK Under Limited Circumstances

These are Really de minimis exceptions

The use does not disrupt other
employees and does not obligate them
to make a personal use of company
resources
For limits this to basically office equipment
& telephones.

Questions to Ask Yourself

Will my use of Company resources result in added
costs or any other disadvantage to the business?
Am I using this resource in order to avoid personal
expense?
Am I confident that my use of business resources
will not compromise the security or integrity of
information or software?
Are resources being used for purposes that could
be embarrassing if reported publicly?

Ethical Tests
2. Categorical Imperative
(Am I special?)
Are you willing to allow everyone to
practice the proposed action or do
you want to be a special case?

Ethical Tests
3. Light of Day Test What would be your
reaction if the action were brought out into
the open for public scrutiny?
How will your decision look
in the light? Could a
reasonable fair-minded
person conclude you acted
improperly?

The Red Zone

Prohibited Uses
Use for material personal gain
Commercial uses
Outside business interests
Illegal or unprofessional activities

Quote
If you cant be a good
example, then youll just have
to be a horrible warning.
- Catherine Aird, Author

Briefly

Daily decisions will guide us in crisis

Values can be instilled

Subordinates seek standards

Choice is often between two goods

AM I COMFORTABLE WITH THIS DECISION?

Would I be comfortable telling my

family about my decision?
Would I want my children to take my
behavior as an example?
Is this decision one that a wise,
informed, virtuous person would
make?
Can I live with this decision?

Ethical Tests
4. Golden Rule
Do Unto Others Test - If you would like
others to do the same to you then the
action passes the test.

Silence is NOT Golden

Speak up!
Encourage ethical practices!
Silence implies your consent!!

So speak up, darn it!

"The hottest places in hell are
reserved for those who,
in a period of moral crisis,
maintain their neutrality"
- Dante

CAN ONE PERSON MAKE A

DIFFERENCE?
I am only one.
But still I am one.
I cannot do everything,
But still I can do something.
I will not refuse to do the
something that I can do.

Closing Thoughts!
The reputation of a thousand
years is determined by the
conduct of one hour.
Japanese proverb

Closing Thoughts!
No regrets live your life so the
priest wont have to lie at your
funeral.
-unknown

Closing Thoughts!
Reputation is one of those
things that take a lifetime to
build and only one bad decision
to destroy.
-unknown

Thoughts
The basis of transformation must
have its foundation in the
realization that character precedes
conduct, because who we are
determines what we do.

Ethical Dilemma - What do you do?

Your dear friend and office assistant, Mary asks
you if she can borrow 10 printer cartridges
from the office supply. When you ask her why,
she says her husbands needs them to print a big
project tonight and he doesnt have money to
buy them. She says shell replace them at the
end of the month when she gets paid.

Ethical Dilemma -

Part II

A week after you tell Mary NO, you discover

the office is out of printer cartridges. Another
worker said he saw Mary take them from the
storage cabinet and carry them out to her car. He
didnt say anything because he didnt think it
was any of his business. Besides he knew that
Mary was a good friend of yours.

Dilemma
You send a brief email or make a brief, local
call to check on your kids.
Is this appropriate stewardship of
company resources?

Dilemma
You access the Internet during a lunch
break to check on your stock portfolio and
transfer assets to a different fund.

Is this appropriate stewardship of

company resources?

But
You are going on vacation and dont have a
digital camera. Your supervisor offers to
let you take the company camera. After
all he always does.
Not allowable, and further what happens if the camera
gets stolen or damaged during your vacation.