E.

PROFESSIONAL VALUES AND ETHICS

Do ethics change over time and place? Ethical relativism argues that ethics vary between different ages and different communities, for example, slavery. Ethical absolutism argues that ethics are unchanging over time and place. That some courses of action are always right and that others are always wrong, for example, it is always wrong to steal. Should you consider the consequences of your actions when making ethical decisions? Deontological ethics argue that everyone following certain ethical rules, and obeying them no matter the consequences best serves society. Teleological ethics argue that you cannot divorce an action from its consequences, and when taking ethical decisions you must take account of what the consequences will be. Therefore, it implies that you have to define what the best possible consequences are. What is relativism? Relativism is the view that a wide variety of acceptable ethical beliefs and practices exist. Given a situation the ethics that are most appropriate will depend on the conditions at that time. The relativist approach suggests that all moral statements are essentially subjective and arise from the culture, belief or emotion of the speaker. Criticisms of relativism include: Strong relativism is based on a fundamental contradiction e.g. the statement that all statements are relative is itself and absolute, non-relative statement. It leads to a philosophy of anything goes thus denying the existence of morality and permitting activities that are harmful to others If its valid to say that everyones differing opinions are right, then its equally valid to say that everyones differing opinions are wrong.

What is absolutism and cognitivism? Absolutism is the view that there is an unchanging set of ethical principles that will apply in all situations, at all times and in all societies i.e. there is a set of moral rules that are always true. There are various methods of establishing these: Religion, law, natural law and deontological approaches. The statement that absolute truth does not exist is flawed. If it does not exist, then the statement that it does not exist cannot be true. Criticisms of absolutism include:

Takes no account of evolving norms within society The source use to derive absolutist ethics may possibly be subjected to human interpretation with the result of different views may exist on the same issue What should happen when two absolutist positions appear incompatible, for example, what happens when an unstoppable object meets an unmovable force? Spear-shield and Teumessian fox and the hound laelaps.

What is deontological ethics? Deontology is concerned with the application of absolute, universal ethical principles in order to arrive at rules of conduct, the word deontology being derived from the Greek for duty. It holds that the outcome of actions is not relevant. We must act in certain ways because it is right to do so right conduct is an end in itself. Criticism of deontological (Kants view): It is argued that you cannot take actions in a vacuum and must have regard for their consequences

What is teleological (or consequentialist) ethics? The teleological approach to ethics is to make moral judgements about courses of action by reference to their outcomes or consequences. (Right and wrong becomes a question of benefit or harm) There are two versions of consequentialist ethics: Utilitarianism (what best for the majority) Egoism (what best for me)

Problems with utilitarianism: Defining what is good for people Potential effects upon minorities

Problems with egoism: It makes short-term selfish desires equivalent to longer-term, more beneficial, interests Some individuals will benefit themselves at the expense of others and the wider environment Egoism is argued to be the ethics of the thief as well as the short-termist

What influences ethical decision making? Ethical decision making is influence by individual and situational factors. Individual factors include: Age and gender Beliefs

Education Employment Psychological factors Locus of control how much influence the individual believe they have over the course of their own lives Personal integrity Moral imagination

Situational factors include: The systems of reward Authority Bureaucracy Work roles Organizational factors National and cultural contexts

Explain Kohlbergs cognitive moral development: Kohlbergs cognitive moral development theories relate to the thought process people go through when making ethical decisions. Kohlberg explains the ethical development of individuals in terms of development through three levels of moral development within two stages within each level. Kohlberg emphasises how the decision is reached, not what is decided. What are the levels? Level 1 Pre-conventional o The decisions individuals make on ethical matters will have nothing to do with the ethical issues involved, but instead will depend on the personal advantage or disadvantage to the individual. Stage 1 How will I be rewarded/suffer if I do this? Stage 2 What deals can they make that is fair for them e.g. I scratch your back you scratch my back Level 2 Conventional Stage 3 - This is where individuals learning to live up to what is expected of them by their immediate circle Stage 4 Operate in line with social or cultural accord rather than just the opinion of those around them. Complying with the law or pressure groups. Level 3 Post-conventional o The most advanced level which relates to individual development towards making their own ethical decisions in terms of what they believe to be right, not just acquiescing in what others believe to be right. Stage 5 What individuals believe to be right in terms of the basic values of their society, including ideas of mutual selfinterest and the welfare of others.

Stage 6 individuals base their decisions on wider universal ethical principles such as justice, equity or rights, or Kants framework (deontology). Respecting the demands on individuals consciences.

BPP TIP: Kohlbergs framework is emphasised significantly in the syllabus! Thomas Jones six criteria list that decision-makers will use: Magnitude of consequences the harm/benefit that will result Social consequences the degree of general agreement about the problem Probability of effect the probability of the harm/benefit actually happening Temporal immediacy speed at which the consequences are likely to occur Proximity the feelings of nearness the decision-maker has for those who will suffer the impact of the ethical decision Concentration of effect whether some person will suffer greatly or many will suffer lightly

Context-related factors that influence ethics include: Systems of reward Authority o direct instructions to subordinates o setting subordinates targets so challenging Bureaucracy o Suppression of moral autonomy overridden by the rules o Instrumental morality morality seen in terms of following rules o Distancing o Denial of moral status Work roles Organizational culture National and cultural context HOW TO HANDLE EXAM QUESTIONS BPP Tip: Exam questions will often be founded on what should be done if breaches of laws, regulations or ethical guidelines occur. Close relationships between the parties or other conflicts of interest will often be a complication. Examination questions will expect you to be able to apply you understanding of ethical issues to practical problems arising in organisations. Typical scenario: A wishes B to do C which is in breach of D A will be a situation, a person, a group of people, institutions etc. B will either be you/an accountant, or the person with the ethical dilemma C will be the action or refraining from acting in a certain way D an ethical principle, quite possibly one of ACCAs fundamental principles

Take into account: Relationships (or conflicts) o Conflict of duties to different staff superiors o Discovering an illegal act or fraud perpetrated by the company (i.e. directors) o Discovering a fraud or illegal act perpetrated by another employee o Pressure from superiors to take certain viewpoints o Not to report unfavourable findings Consequences o Survival of the company o Reputation o Company as a whole is amoral Actions o Informal discussions o Further investigation o Tightening up of controls o Introduction of new controls o Attention to organizational matters

Practical steps include: Analyse the situation Identify the ethical issues Consider the alternative options State the best course of actions Justify your recommendations

BPP Tip: Weak answers include large amounts of unanalysed detail copied out from the question scenarios which earns no marks. Other weaknesses include; paraphrasing the question; regurgitating the ethical guidelines; failure to make a decision or failure to recommend an action of asked; justifying you decision merely by saying this is the ethical thing to be done. Models to use include in answering a question include: AAA model Tuckers 5 question model

American Accounting Association (AAA) model: 1. 2. 3. 4. 5. What are the facts of the case? What are the ethical issues in the case? What are the norms, principles and values related to the case? What are the alternative courses of action? What is the best course of action that is consistent with the norms principles and values identified? 6. What are the consequences of each possible course of action? 7. What is the decision?

Tuckers 5 question model: Is the decision: 1. 2. 3. 4. 5. Profitable? Legal? Fair? (in whose perspective) Right? Sustainable?

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