...ETHICAL DECISION MAKING AND MORAL BEHAVIOR | | Related Links WebNote Index Leadership Overview Decision Making Values Contact information: Dr. Richard W. Scholl 36 Upper College Road Kingston, RI 02881 p. 401.874.4347 f. 401.874.2954 rscholl@uri.edu Much of the recent interest in ethics and moral behavior in business comes from Enron and Worldcom, as scholars, educators, practitioners, and the public seek to understand the behavior of executives in these firms. Many have chosen to view these cases from the perspective of ethics, that is, the behavior of these executives is seen as unethical and the explanation is that they are unethical or immoral people. Furthermore, the solution is improved moral education in business programs. “Somehow, we need to make future executives more moral or more ethical” and we can do this in the context of an undergraduate business program or MBA degree program. Some have even suggested that today’s business programs not only do not facilitate the “moral development” of students, but students leave these programs “less moral” than they were when they entered the programs. Here a couple of points to consider: What is Ethical or Moral? What do we mean by ethical decision making? Are there decisions that are not ethical in that there is not ethical component to a choice? In their review of ethical decision making, Tenbruensel and Smith-Crowe (2008) present a distinction between moral decision making and amoral decision making. Within...
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...Personal Values and Ethical Standards BSHS 322 March 17, 2014 Audra Stinson Personal Values and Ethical Standards The human services sector is a profession designed for the individual who can adhere to ground rules, demonstrate core values, and develop ethical standards. Forming a personal value or developing ethical behavior is a craft implemented through one’s profession or everyday life challenges. According to Chmielewski (2014), “Ethical thinking involves the intricate process used to consider the impact of our actions on the individuals or institution we serve and values involve emotion, knowledge, thought, and ultimately choice of response” (The importance of values and ethical decision making ). Developing values and making ethical decisions is a life changing skill that can help with advancement in a professional career such as human services. These skills are used to deal with ethical dilemmas, critical thinking, and the decision making process. The development of personal values, ethical standards will be discussed based on the human services profession. As well as discussing an ethical dilemma in relation to the ethical stand of human service professionals; experiencing little to no difficulty based on my personal belief system. Furthermore, discuss conflicts or discordance between ethical practice and personal values. I have been in the human services field for the past 6 years and I must say, I was not aware of my values and was never faced with a dilemma...
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...advanced technology, decision-making is an integral part of almost all organizations. The people who are challenged in this kind of situation are organizational managers. They have to come up with concrete decisions that are in line with the objects of the companies they are serving. In this case, they are expected to make decisions without fearing the end results. The case in this article is not different. For instance; there are four decisions to be made concerning the best company to be hired to provide computer services for knowledge sharing. Jackson, being the officer in charge of the department, is appointed by the president of McConnell Spices firm as an overseer in this matter. Therefore, he conducted research and came up with his proposals of which, has to be approved by the firm's board members. Despite being incapable of providing the services required by the company, Madam McConnell questions why Jackson has not included Standard Systems in his list. This scenario leaves Jackson with two major decisions to make. Other important decisions to be made are group decisions and the decisions of the board. All these decisions are explained in this paper. Case Study: McConnell Spice Mr. Charles Jackson, a chief information officer at McConnell Spice limited, has to make two critical decisions concerning his findings of a suitable firm that has the potential of equipping McConnell Spice with the required software applications. First, he has to make a decision on whether to...
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...Ethical Decision Making Introduction Implementing a framework for ethical decision making within the Toy Company should be the first step to supporting overall company adoption of core ethical business approaches. So what exactly does ethical decision making address? From the base definition, it addresses the ability of an employee to make a decision when no apparent answer is obviously right or wrong. It addresses decisions based on differing perspectives, beliefs or bias. Ethical decisions may also incorporate ethics related to obedience, general care, or reason. In relation to obedience, decisions may not solely be based on legal concerns. Ethical decisions based on obedience may also address the moral implications of the decisions outcome. Moreover, ethical decisions made with care will introduce empathy or require the ability to see things from others perspectives. Finally, ethical decisions addressed with reason permit the company to base decisions on experience to predict the most likely outcome. Suggested Strategies for Implementation Following are two suggested strategies by which the Toy Company may ensure multi-level participation into ethical decision making models. 1. Implement a Code of Ethics and integrate that code into the company's mission statement and policies. By researching, reviewing, developing, and implementing a Code of Ethics into all facets of the company the employees will have a guideline detailing the base values governing ethical considerations...
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...Chakroborty, | | |198 A, Sarat Bose Road, | | |Kolkata – 700029. | | | | ROLE OF COST AND MANAGEMENT ACCOUNTANTS IN IFRS REGIME CMA. Arindam Banerjee Abstract IFRS has today become a universal financial reporting language through which all the global companies are communicating with its global investors rather than having a divergent set of standards applied differently in different countries. Against this background the present article begins with the concept and background of IFRS. The article further...
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...the planes he intends to purchase as collateral for the loan. Joan researches Bob’s background and identifies that he has worked in the industry for 12 years and was able to show an increase in regional sales by 28%. Based on this research and Joan’s personal friendship with Bob, Joan recommends that ManBank provide the full loan amount. The loan is granted and Bob begins his business. Within 3 years, Bob’s business goes bankrupt and the bank is only able to recover one half of the loan amount upon the sale of Bob’s planes. The bank is now responsible for a debt of $150,000.00 that they will not be able to recover. Due to this debt, the shareholders of ManBank file a derivative lawsuit against Joan for breach of her fiduciary duty of care. The issue is to determine if Joan’s conduct is protected under the Business Judgment Rule (herein referred to as, BJR), thus, determining if Joan should be held liable for the company’s debt. As outlined in the NPC courseware, the Business Judgment Rule does not provide for a distinct definition. It is a principle that it utilized by the courts in multiple applications and translations. Essentially, the BJR is a corporate protection for directors and officers of a firm who act in good faith and make prudent decisions on behalf of such firm; whereby, these directors and officers can not be held liable by the courts for “changes in the company’s circumstances or loss of value.” Under NY CLS Bank, § 7015, “Each director of...
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...accounting theory that managers base decisions based on personal or organizational objectives such as higher compensation or increased implementation of corporate governance procedures (Mattessich 2007). The two standard setting bodies try to implement policies in order to ensure better reliability and transparency of financial statements relevant to specific managers applying these standards. The two bodies set standards to improve accounting practice in their respective regions so they act on improving areas of corporate governance. Decision usefulness deals with the process of decision making based on accounting theories, concepts and principles. This theory involves the development of procedures that can be applied to make decisions in a useful manner (Cyert and DeGroot 1987). The standards proposed by both standard setting bodies entail a thorough process and involve significant research to make standards more useful to accountants, investors, shareholders and other users of financial statements in the decision making process. The moral hazards in accounting are concerned with risks between two parties when one party is not willing to work honestly or in a trustworthy manner (Wessels 2006). If any of the standard setting bodies does not want to apply same techniques and strategies in issuing standards then the other board is subject to moral hazards or risks. Measurement approaches deal with measurement of several items based on hypothetical analysis and actual findings...
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...Paradigm Analysis Grand Canyon University: EDA-575 September 17, 2014 Paradigm/Belief | Opposite Paradigm/Belief | 1. Administrators must be learners.Administrators must take the role of being the lead learner. One of the most important responsibilities of a leader, if not the most important, is becoming the lead learner. (Green, 2013) This will demonstrate to the staff the value the leader has for learning. It will also assist the leader in staying current on current strategies and practices in the educational field. | 1. Administrators already know all there is to know about education.The field of education is constantly changing. A leader needs to stay up to date with the current strategies. By having knowledge of current strategies, student learning will benefit. Some one once told me, it is what you learn after you already know it all that really matters. | 2. Leaders must develop positive relationships with their followers.By building positive relationships with followers, leaders will be more effective in leading an organization. To effectively lead an organization, relationships must be developed between the leader and the followers. (Green, 2013) These positive relationships will assist in building a relationship of trust between the leader and the followers. | 2. There is no need to develop positive relationships with followers.Making others feel welcomed and wanted is the heart, head, and hand of leadership. (Green 2013) Without developing these positive...
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...aspects related to the strength of the financial reporting: the influence of standard precision and the role of audit committee. This article had and referred to with particularly focus on the circumstance in US with regards to their rules-based approach of accounting. The more precision based accounting standards in US is suppose to dampen the executives' ability to manipulate financial results as well as increase comparability across all firms. However, all the accounting scandals brought to the attention of the public has began to question whether the rules-based standards are serving their purpose better than the other option: principle-based. Originally, the view was principle-based accounting standards offers more room for flexibility and interpretation in the view of the executives and therefore more prone to manipulation because it allows for differences in judgment. This also implies of reduced comparability across firms because of the variations permitted. However, research from the article suggests otherwise. Results from the experiment showed that under the precise standard, or the rules-based standards, preparers are more likely to make aggressive financial reporting decisions (Agoglia et al. 2011, p.10). Thus, on the opposite side, principle-based standards result in less aggressive reporting style (Agoglia et al. 2011, p.10). The argument for that is because less precise standards allows for more room for judgment, the preparers are more concerned "about second-guessing...
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...Introduction The usefulness of accounting theory is evident at various levels within the accounting profession and society in general including, standard setters, accounting professionals and users of accounting information. This essay will address two key areas, firstly, a personal reflection on this course and why studying theory is essential for practicing accountants. The second part is a critical evaluation of the conceptual framework and why it is an essential part of accounting literature. Areas evaluated include the purpose and benefits of a conceptual framework, a brief history of it in Australia, principle based versus rules based standards and some criticisms of it are discussed. Personal reflection I must admit, when scrolling through the list of courses I have left to complete my degree Accounting Theory did not jump out as one I was eager to enrol in. This is in no small part due to my lack of appreciation of how knowledge of the development of theory can give context and power to understanding changes. Whereas before I was more about practice and ‘getting it done’, it has become apparent that theory generally is an intrinsic element in advancing our understanding of our environment, culminating in improvements in practice. It is not a means of simply explaining or predicting behaviour, nor is it there only to serve as a framework for further inquiry (although these are important benefits of theory). Theory has a much more significant and elegant role to...
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...Using a conceptual framework in setting accounting standards Ian Dennis Business School Oxford Brookes University Abstract The paper examines the nature and role of a conceptual framework for financial reporting. Although much has been written about such frameworks and their purported role and the FASB and IASB are currently revising and converging their frameworks there are still questions about the kind of thing it is and how it is used in setting accounting standards. Using insights from the philosophical literature this paper considers the nature of the statements that appear in the chapters of the conceptual framework on objectives and qualitative characteristics. It then considers how these statements are used by standard setters in reasoning towards accounting standards. The kind of reasoning involved and the type of statements that are used in such reasoning is examined. The idea that some of the statements in the conceptual framework express desires that are to be fulfilled by financial reporting regulated by accounting standards is explored. These should be conceived as expressing general desires that are used in practical or instrumental reasoning towards accounting standards rather than as universal desires that enable the deduction of such standards. The need for the exercise of judgement in such reasoning is explored. The nature of the other statements in the conceptual framework is ambiguous. They are sometimes taken to be empirical statements about...
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...Ethical Decision-Making Analysis It doesn’t matter in any organization, opposed ethics and values will come into play sooner or later. Everybody has their own opinions; everybody has their own morals to chase. But, it is imperative to comprehend how to deal with people who have differing values and choices when conflicts occur. When you belong to a certain kind of branch of the government like the U.S. armed forces, the best result to deal with ethical decision making and values is follow a decision making process that follows standards of Integrity, Duty and Honor. PFC Alexander, a female Soldier of my squad, accomplished the awareness inventory which indicated that her ethical viewpoint stems from a conviction of obligation or duty. The inventory pointed out that PFC Alexander’s belief system is based on what a rational individual ought to morally do. This faith is also in line with the armed forces. The armed forces focal point is on what is right and morally right. The armed forces; also inspires a core sense of code of honor, value and integrity. The armed forces provide: structure and creates the guidelines that enlisted men follow. This structure is based on the significance of obligation, duty and integrity. PFC Alexander ethical style inventory signify that she thinks that all human beings have a right to individual as well as an individuality respect. The inventory also indicates that PFC Alexander does not consider in judgments that occur based on what...
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...three broad objectives (1) To provide information for costing out products and services, (2) To provide information for planning, controlling, evaluation, and continuous improvement, and (3) To provide information for decision making. The purpose of the course is to learn the fundamental concepts and procedures necessary for the understanding and use of management accounting information for managerial decisions. The emphasis is on the use of accounting information. Effective management requires a sound understanding of how to use accounting information for decision making. The following topics will be discussed: Major differences between Financial and Managerial Accounting Ethical standard for management accountants Cost terminology and concepts Cost objects, cost flows in manufacturing or services operations. Job order costing and process costing Activity based costing and management Cost behavior and analysis—absorption vs. variable costing, cost driver analysis, statistical cost estimation, CVP analysis using contribution margin approach. Profit planning and budgeting Cost analysis for tactical decision making Standard costing and analysis Cost analysis for performance measurement and evaluation Relevant costs for short-run...
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...Ethics stresses a social systems to which application of morals that influences ethical behavior at work whereas morality consists of rules of human behavior and specifies that certain behavior or actions are wrong or immoral and others are right or moral (De George, 2010). The decision’s one makes, whether it is for personal or professional reasons falls into either an ethical or moral decision making category. Morals define personal character. Moral decisions are based upon the beliefs of the individual while ethical decisions are guidelines, standards, and laws that affect the business professional’s decision-making process. In an ethical climate, people are held accountable and decisions are made based on what is in the best interest of the company or its employees and not what nets the greater financial gain for an individual at the expense of the company’s ethical fiber. Issues that arise in business can sometimes be ethical but immoral or vice versa. Business organizations face ethical and moral decisions daily. Ethics in business are central in the organization as it provides standards that form the moral integrity of the company. Effective leaders and managers utilize morality and ethics in a manner that the policies he or she establishes and the behavior he or she models are applied. The aim is to operate business in a way that meets the stated goal and do so in a manner that is consistent with the higher value of the business community. Whether ethics are integrity...
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...Using a conceptual framework in setting accounting standards Ian Dennis Business School Oxford Brookes University Abstract The paper examines the nature and role of a conceptual framework for financial reporting. Although much has been written about such frameworks and their purported role and the FASB and IASB are currently revising and converging their frameworks there are still questions about the kind of thing it is and how it is used in setting accounting standards. Using insights from the philosophical literature this paper considers the nature of the statements that appear in the chapters of the conceptual framework on objectives and qualitative characteristics. It then considers how these statements are used by standard setters in reasoning towards accounting standards. The kind of reasoning involved and the type of statements that are used in such reasoning is examined. The idea that some of the statements in the conceptual framework express desires that are to be fulfilled by financial reporting regulated by accounting standards is explored. These should be conceived as expressing general desires that are used in practical or instrumental reasoning towards accounting standards rather than as universal desires that enable the deduction of such standards. The need for the exercise of judgement in such reasoning is explored. The nature of the other statements in the conceptual framework is ambiguous. They are sometimes taken to be empirical statements about...
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