...It’s Time For Principles-Based Accounting Ethics More than Establish Minimum Acceptable Standards Professionals often face grey areas in life that have no clearly defined right or wrong answer, where there is no obvious choice. The manner is deciding what choice one should make in such a circumstance is frequently guided by ethics, which help to decide what the correct moral path should be. Although doing the right thing is desirable, figuring out exactly what that should be has been a philosophical question that has perplexed some of the world’s foremost thinkers. In the field of accounting, a shift from an emphasis on rules to one based on the principles is a noble step in improving the profession. A reading of It’s Time for Principals-Based Accounting Ethics by Spalding raises several questions that should be answered before implementing this new conceptualization. I believe principles based accounting ethics is overdue and I agree with the authors. One of the reasons I believe principles based accounting ethics is overdue is fairly straightforward, any organization, group, society or profession is only as good as the people in it. One of the foremost barometers of a group’s success is the level of integrity, ethics and ability to perpetuate correct behavior at all times. An institution that is corrupt, as exemplified by a multitude of businesses over the last century will eventually fail as people lose faith in the lack of a moral compass being practiced. As such having...
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...Assignment Week 4 Code of Ethics Name Devry University Accounting 525 Veliota Drakopoulou, PhD 01/30/2016 Abstract The American Institute of Certified Public Accountants (AICPA) has made a Code of Professional Conduct that establish an ethical standard for public accountants in the US. The Generally Accepted Accounting Principles (US. GAAP) wants to collaborate with IFAC in order to resettle the principle accounting standards, but the rules and the ethics for professional and the financial reporting statements make a big difference. According to the article “It's Time for Principles-Based Accounting Ethics”, the American Institute of certified public accountants (AICPA) established standards that public accountants in the United States need to follow. The article argues for this code of conduct to be replaced with a code of ethics, which the authors believe to be superior to the rules-based standards currently in place, and attempts to present a solution by centering the AICPA code rules around different virtues such as objectivity, integrity, inquisitiveness, loyalty, and trustworthiness and analyzing the rules-based standards. This paper will argue whether the authors are correct in stating that a code of ethics should do more than establish minimum acceptable standards; describe the five cardinal virtues of professional accountants; differentiate between the rules-based and principles-based accounting standards; and finally compare and contrast the AICPA’s code...
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...|Ethics Case Studies—Learning Application of the 2009 ADA/CDR Code of |[pic] | |Ethics for the Profession of Dietetics | | |Case Study #1: A registered dietitian (RD) is newly employed as part of a treatment team in an ambulatory care setting. After several | |counseling sessions, one of the clients he is counseling for obesity discloses that she is being physically abused by her spouse and is | |experiencing depression. The RD continues to have the client come in for nutrition counseling sessions in an attempt to better understand | |the relationships among her current domestic situation, psychological state and weight issues. During a treatment team meeting, the RD | |reports on the client and is questioned by one of the team members about why he did not refer the client to the mental health professional. | |What should be done in this situation? | |Questions for Discussion | |Is the situation described an ethical issue? Or, is it a business dispute? It is an ethical issue. | |What principle(s) of the Code of Ethics does it...
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...of Business Ethics Summary Paper of My ‘Ethical Position’ From My Experience, Knowledge And What I Have Gleaned From The Business Ethics Class. ABSTRACT The ability to recognize and deal with complex business ethics issues has become a significant priority in twenty-first century companies. In recent years, a number of well publicized scandals resulted in public outrage about deception and fraud in business and a demand for improved business ethics and greater corporate responsibility. The publicity and debate surrounding highly visible legal and ethical lapses at a number of well known firms, including AIG, Countrywide Financial and Fannie Mae, highlight the need for businesses to integrate ethics and responsibility into all business decisions. The field of business ethics deals with questions about whether specific business practices are acceptable. For example, should a salesperson omit facts about a product’s poor safety records in sales presentation to a client? Should an accountant report inaccuracies that he or she discovered in an audit of a client, knowing the auditing company will probably be fired by the client for doing so? Should an automobile tire manufacturer intentionally conceal safety concerns to avoid a massive and costly tire recall? Regardless of their legality, others will certainly judge the actions taken in such situations as right or wrong, ethical or unethical. By this very nature, the field of business ethics is controversial...
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...Material Key Terms Ethical Terms Character: Moral actions based on duty-driven ethical principles. These include trustworthiness, respect, responsibility, fairness, caring, and citizenship (Josephson Institute, 2009). Ethical System: Underlying ethical principles, which a person uses to make decisions Ethics: “The principles, norms, and standards of conduct governing an individual or organization” (Treviño & Nelson, 2011, p. 17); ethics form the basis for determining the correct action, or moral behavior, in a particular situation. Morals: Actions based on one’s underlying ethical principles Values: Those things or actions upon which the individual or organization spends time and money Ethical Systems Duty-based: A moral obligation or commitment to act in a certain manner, with clear right and wrong being determined by an outside authority Entitlement-based: Moral decisions are based entirely on what is in the best interest of the individual, regardless of relationships, the needs of others, or business. Goal-based: Focuses on the outcome or final purpose, which may be localized, as in business, or universal, as in feeding all the hungry children in the world Humanistic (secular humanism or human nature ethics): Beliefs based on the extremes of human behavior, both good and bad, without the direction of an outside authority Relativistic: Relativism often uses the personalized approach to ethics. It is subjective and focuses on personal experience as a...
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...Personal Ethics Development Paper * ------------------------------------------------- * ------------------------------------------------- * ------------------------------------------------- * ------------------------------------------------- * ------------------------------------------------- Displaying messages 1 - 2 of 2 Participants: rose.angel13 and Smart-Guru rose.angel13 2015-02-28 23:32 Write a 1,050- to 1,200-word paper on personal ethics development that examines your personal ethical system and ground rules. * Incorporate the terms found in the University of Phoenix Material: Key Terms. * Focus on the developmental aspect of your ethics rather than on a particular position on any issue. * Define your underlying ethical system, its primary principles, the sources that helped shape your ethics—such as people, institutions, events, and so forth—and the criteria and decision-making factors you have used to revise them. * Discuss the potential effect of your ethics on your performance or use of them in your workplace. Use a specific personal example. * Explain why ethics are needed in an organization and how ethics are integrated into an organization to achieve its direction and goals. What effect does the application of these ethics have on individuals, organizations, and society? Format your paper consistent with APA guidelines. KEY TERMS Key Terms Ethical Terms Character: Moral actions based on duty-driven...
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...Principles-Based Versus Rules-Based Accounting Karla Law Liberty University Accounting 301-B07 Abstract Principles-based and rules-based accounting systems each have their advantages and disadvantages. When carefully examining these two accounting systems, it is clear to see that neither is better than the other. However, many individuals have the misconception that principle-based accounting is better. This is due to the fact that in recent years, the Financial Accounting Standards Board (FASB) has issued several standards that are considered more principles-based than rule-based. Nonetheless, that does not mean that principles-based accounting is better. Therefore, this paper will examine the pros, cons, ethics and virtues of both rules-based accounting and principles-based accounting. Keywords: GAAP; FASB; SEC; Principles-Based Accounting; Rules-Based Accounting Introduction Accounting can be a very confusing and intimidating subject for many individuals. Reason being, is that accounting has its’ own language per say. It is imminent that one learns the key terms to this challenging subject in order to obtain a better understanding of the matter. For starters it is key that one learns the differences and similarities of principles-based accounting and rules-based accounting. Once gaining that knowledge it is important to know what the generally accepted accounting principles (GAAP) are and what effect they have on principle-based and rules-based accounting. As...
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...ubyuhb hu b Under this form of ethics you can't justify an action by showing that it produced good consequences, which is why it's sometimes called 'non-Consequentialist'. The word 'deontological' comes from the Greek word deon, which means 'duty'. Duty-based ethics are usually what people are talking about when they refer to 'the principle of the thing'. Duty-based ethics teaches that some acts are right or wrong because of the sorts of things they are, and people have a duty to act accordingly, regardless of the good or bad consequences that may be produced. Some kinds of action are wrong or right in themselves, regardless of the consequences. Deontologists live in a universe of moral rules, such as: It is wrong to kill innocent people It is wrong to steal It is wrong to tell lies It is right to keep promises Someone who follows Duty-based ethics should do the right thing, even if that produces more harm (or less good) than doing the wrong thing: People have a duty to do the right thing, even if it produces a bad result. So, for example, the philosopher Kant thought that it would be wrong to tell a lie in order to save a friend from a murderer. If we compare Deontologists with Consequentialists we can see that Consequentialists begin by considering what things are good, and identify 'right' actions as the ones that produce the maximum of those good things. Deontologists appear to do it the other way around; they first consider what actions are...
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...Professional EThics Professional Ethics Legal and ethical issues are frequently encountered in the health care setting and present unique challenges to health care professionals. Practicing nurses need to be knowledgeable with these concepts to ensure patient’s rights. In this paper, the author will describe the relationships between legal and ethical issues. In addition, the author will identify personal values and professional ethics and examine ethical theories and principles. Examples of applications of legal and ethical issues to current practice will also be provided. Relationships Between Legal and Ethical Issues “Ethics is the branch of philosophy concerned with evaluating human action” (Guido, 2010, p. 3). It is based on the principles of right and wrong and provides structure to behaviors and actions. Ethics are closely intertwined with morals and values. Morals are “personal principles that are acquired from life experiences, family and peer relationships, religion, culture, and the law” (Guido, 2010, p. 3). Values are “personal beliefs about the truths and worth of thoughts, objects, or behavior” (Guido, 2010, p. 3). Therefore, ethics are subject to an individual’s personal interpretation. In contrast, laws are rules and regulations established by some authority and enforced by judicial decision (Dictionary.com, 2011). The legal system governs actions and behaviors without regard to personal values, beliefs, and views. Laws are constantly evolving to...
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...1) January 2013 Examine the defining characteristics of Situation Ethics (21) Situation ethics is an ethical theory pioneered by Joseph Fletcher in the 1960's, a time in which society and the church were facing drastic change. It is an idealistic, teleological, consequentialist theory that resolves ethical and moral issues relative to the situation. In contrast to utilitarianism, Situation ethics is based on Christian principles and primarily the promotion of agape. Fletcher's liberal, less rule based theory is based on one absolute law, which when applied properly, handles every situation. Subsequently, Fletcher rejects the deontological view of 'right and wrong' decisions in a situation and believes that ethical decisions should follow flexible guidelines rather than absolute rules. Situation ethics developed in the 1960's, a time of social, cultural and moral change in the Western countries. After the Second World War, the post war generation threw off the shackles of paternalism, authority plus the law and government. Sexual liberation advanced as methods of contraception became freely available and more reliable. The introduction of the contraceptive pill allowed women to express their new individualism and freedom. Many people began to turn away from the church and blamed factors such as "Greater independence; more money.the weakening of family bonds and religious influences; the development of earlier maturity, physically, emotionally and mentally; the impact of modern...
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...PUMA POLICY BRIEF PRINCIPLES FOR MANAGING ETHICS IN THE PUBLIC SERVICE OECD RECOMMENDATION The OECD Council adopted a Recommendation on Improving Ethical Conduct in the Public Service on 23 April 1998. The Recommendation is based on a set of Principles for Managing Ethics in the Public Service agreed in the Public Management Committee, to help Member countries to review their ethics management systems. Although governments have different cultural, political and administrative environments, they often confront similar ethical challenges, and the responses in their ethics management show common characteristics... Member countries need to have a point of reference when combining the elements of an effective ethics management system in line with their own political, administrative and cultural circumstances... Preamble to the OECD Recommendation PUMA Policy Brief No. 4 Public Management Service May 1998 On the proposal of the Public Management Committee the OECD Council recommends that Member countries take action to ensure well-functioning institutions and systems for promoting ethical conduct in the public service. This can be achieved by: • developing and regularly reviewing policies, procedures, practices and institutions influencing ethical conduct in the public service; • promoting government action to maintain high standards of conduct and counter corruption in the public sector; • incorporating the ethical dimension into management frameworks to ensure that management...
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...PHL/323 Ethics in Management November 28, 2011 Business Code of Ethics Evaluation Code of ethics represents the principles and protocol of which a company operates. The reason for the code of ethics is to set a standard for employees and stakeholders to govern by. In this paper this writer will evaluate the code of ethics Catholic Health Services uses. How the code of ethics is used for employees, management, and board of directors will be discussed. Why the code of ethics is used, how it is used, and when it is used will be examined. This writer will modify if need be, how to modify the code of ethics and implement the change, employees reaction to the change, the effect the code has on the organization will be outlined. This writer will summarize the results of inquiry into the code of ethics of the organization Every organization operates by an ethical system. Catholic Health Services is an organization of the Archdiocese of Miami and the largest post acute provider in the southeast United States. Catholic Health Services provides a full continuum of health care and social services to the southeast Florida community. This association serves about 6,000 people daily with more than 7,500 new patients per year and operates 30 facilities in Broward and Miami-Dade counties (CHS, 2011). CHS mission statement is “To provide health care and services to those in need, to minimize...
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...Personal Can Ethics Get? Organizational ethics has come under much scrutiny over the last few years due to the financial crisis and misuse of organizational funds. The unethical behavior has come into the light due to the demand for government bailout and the outcry of the public for more oversight of funds. Uproar has ensued due to huge bonuses for corporate big shots running floundering companies while their employees are getting laid off and their benefits cut. All of it being plastered across the news making business and ethics anonyms. The following will discuss how personal differences and preferences impact ethics, how organizational policies and procedures impact ethics, and will examine a case study on dealing with ethical dilemmas. Discuss how personal differences and preferences can impact organization ethics. Values and principles strongly influence an individual’s decision making and behavior. Ethics are values and principles that help individuals distinguish right from wrong. A difference in an individual’s values and principles can result in a difference in what an individual considers to be ethical or unethical. The same can be said for an organization. For example, a person may value people more than an organization. Therefore, that person may not consider an action that is hurting the organization but benefiting the people within the organization to be unethical. Some may not consider an action to be unethical unless the action breaks the law. Ethics are based...
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...scenario about Mrs. Mortimer under the section of Ethics and the Pharmacy Technicians, the two theories that I agree relate to Mrs. Mortimer scenario are law and the principle based ethics. According to the law, a pharmacist may not refill a prescription unless the doctor has authorized it to be refilled. A doctor may authorize no refills, one refill, or several refills on the original prescription. After all of the refills authorized on the original prescription have been used, a pharmacist must obtain authorization from the doctor before the prescription can be refilled. On the other hand, the principle based ethics the pharmacist can say that with holding her medication from her for 3 days is immoral and refill her medication. The theories that best benefit Mrs. Mortimer are nonconsequentialism, ethics of care, principle based ethics, virtue based ethics, and the code of ethics. Under nonconsequentialism, Mrs. Mortimer can argue that despite the fact that it may be against the law, it is important for her to have her medications, and that since she is a regular customer who has been using Synthroid regularly, she should be given some medicine to hold her over. The ethics of care supports the pharmacist’s decision to dispense tablets to Mrs. Mortimer. Denying her the medicine goes against the ethics of care and would leave the patient in a potentially harmful situation. Principle based ethics also goes along with the ethics of care. Morally, it would be unethical and cruel to...
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...Title: Medical Ethics: History and Guiding Principles Author: Alan J. McGoldrick Course: Medicine, Disease and History Instructor: Professor Foss Date: June 15, 2012 Medical ethics are the moral guidelines and ethical laws that help to prioritize a medical professional's work responsibilities. The code of medical ethics outlines the proper conduct between medical professionals and their patients, communities, and colleagues. Each country has a different code of medical ethics, though most contain the same basic principles, and all share the same history of evolution, according to the World Medical Association. Medical ethics refers to the discussion and application of moral values and responsibilities in the areas of medical practice and research. While questions of medical ethics have been debated since the beginnings of Western medicine in the fifth century B.C., medical ethics as a distinctive field came into prominence only since World War II. (Porter, 1998) This change has come about largely as a result of advances in medical technology, scientific research, and telecommunications. These developments have affected nearly every aspect of clinical practice, from the confidentiality of patient records to end-of-life issues. Moreover, the increased involvement of government in medical research as well as the allocation of health care resources brings with it an additional set of ethical questions. Emerging Medical Ethics Through the Ages Ancient Medical...
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