Beruflich Dokumente
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Ethics
Chapter III
Ethics Definition
Ethics Questions
• How do you approach issues of ethics and values?
• Are your approaches different in your personal and
professional lives?
• What are the ethical issues resulted from the current crisis?
• Have policymakers, regulators, businesses, educators and
even our society lost their value base?
• What is an ethical behavior?
• Are our ethical standards of public trust, honesty, sensitivity,
fairness and values absolute or do they change depending
on the context?
Chapter Objectives:
• Present the definition of ethics in general and business ethics in particular.
• Recognize the need for a code of ethics that is upheld especially by setting the
right “tone at the top”.
• Become familiar with the SEC rules and regulations related to ethics.
Video ( Video)
Key Terms
•Business ethics
•Code of Ethics
•Committee of Sponsoring Organizations
Of the Treadway Committee (COSO)
•Conference board
•Defense Industry Initiatives
on Business Ethics and Conduct
•Ethical Behavior
•Ethical Incentives
•Ethical Sensitivity
Ethical Theories
There are several broadly accepted ethical theories.
- Consequentialist Theory
- Nonconsequentialist Theory
- Collectivist Theory
- Metaethics
- Normative Ethics
- Business Ethics
Definitions
• Business Ethics: The moral principles and ethical standards that
guide business behavior.
• Professional Ethics: A learning process of professional values,
ethics, codes of conduct and accountability to act in the best
interest of the profession, the public and the global society.
• Corporate Governance: An ongoing process of managing,
controlling, and assessing business affairs to create shareholder
value and protect the interests of other stakeholders.
• Forensic Accounting: the practice of rigorous data collection and
analysis in the areas of litigation support consulting, expert
witnessing, and fraud examination.
Ethics Triangle
Ethics
Sensitivity
Business
Ethics
Ethical Ethics
Behavior Incentives
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Principles
Basic tenets of ethical conduct:
• Responsibilities—Exercise sensitive professional and
moral judgment.
• Public interest—Honor the public trust.
• Integrity—Perform responsibilities with the highest
sense of integrity.
• Objectivity—Impartial, unbiased, and independent. Free
of conflicts of interest and independent in fact and
appearance.
• Due care—Diligent, competent, thorough, prompt.
• Scope and nature of services—Observe the principles
when considering the scope and nature of services
provided.
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Professional Conduct
• AICPA Code of Professional Conduct
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The SEC rule describes the term “code of ethics” as
written standards designed to deter wrongdoing and to
promote:
SEC. 2003. Disclosure Required by Sections 406 and 407 of the Sarbanes-Oxley Act of 2002 (January).
Available at: www.sec.gov/rules/final/33-8177.htm.
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The established codes of conduct and ethics
programs address the following:
• Avoidance and resolution of conflicts of interest between the
company and employee.
• Compliance with all applicable regulations.
• Emphasis on customer relations to enhance the company’s
reputation.
• Avoidance of improper use of the company’s confidential
information.
• Encouragement of whistleblowers to reveal dishonesty,
wrongdoings, and improper behavior.
Ethics In Workplace
management behavior
direct supervisors
behavior
positive reinforcement
compensation (bonus
+salary)
behavior of peers
Findings of Deloitte&Touche
2007 Survey on Ethics and
Workplace
Reasons why people make unethical decisions:
job dissatisfaction
financial rewards
ignorance of code of
conduct
Findings of Deloitte&Touche 2007
Survey on Ethics and Workplace
Aspects that cause incentives conflicts:
long hours
fast-paced environment
inflexible schedule
highly competitive
environment
Findings of Deloitte&Touche 2007
Survey on Ethics and Workplace
Results pertaining to questionable
behavior in the workplace environment:
stealing petty cash
cheating on expense
reports
other results
Findings of Deloitte&Touche 2007
Survey on Ethics and Workplace
The majority believes that the following actions are
acceptable: