Ethics comparison companion

Accounting Ahead | Original study resource | accountingahead.com.au

Ethics comparison companion

ETHICS AND GOVERNANCE | MODULE 2 | PARTS A AND B

Professional judgement

Ethics asks what should be done and why. A professional must consider the people who rely on the work, the

public interest and the reasons supporting a decision.

Starting point

Why further ethical reasoning is needed

Law

Legal compliance matters, but it does not settle every question about responsible

conduct.

Feelings or beliefs

They can alert us to a concern. Personal conviction alone does not supply consistent,

publicly defensible reasons.

Accepted behaviour

A common workplace practice can still harm people or conflict with professional

responsibilities.

Business and profession

Business ethics concerns business conduct. Professional ethics adds the obligations

and expectations attached to a profession.

Five fundamental principles

Principle

Practical focus

Integrity

Be straightforward and honest.

Objectivity

Do not let bias, conflicts or undue influence distort judgement.

Competence and due care

Keep knowledge current and perform work diligently and competently.

Confidentiality

Protect information; consider applicable disclosure rights and duties.

Professional behaviour

Meet professional and legal obligations and protect the profession's credibility.

Four tensions between competing values

Tension

The competing consideration

Truth / loyalty

Honest communication / commitment to a person or organisation

Individual / group

One person's interests / the interests of a wider group

Short term / long term

Immediate benefits or pressures / future effects

Justice / mercy

Consistent accountability / compassion for circumstances

Source: Module: 2 > Part A: Professional Ethics > 2.1-2.3 > Page: 48-56. This companion covers the supplied extract, not the whole

module.

ETHICS | STUDY & PRINT

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Accounting Ahead | Original study resource | accountingahead.com.au

Ethical lenses

ETHICS COMPARISON COMPANION | CONDUCT AND CHARACTER

Classification. Descriptive ethics explains how people behave. Normative ethics asks how they ought to behave.

Within normative ethics, conduct focuses on actions (consequences or duties); character focuses on virtues.

Approach

Deciding question and distinction

Watch for

Ethical egoism

Consequences

What best advances the decision maker's interests?

Enlightened self-interest includes longer-term trust;

restricted egoism respects law and fair play.

Self-interest is the focus.

Psychological egoism instead

describes why people act.

Utilitarianism

Consequences

Which feasible option gives the best overall balance of

benefits and harms for all affected? Include short- and

long-term, financial and non-financial effects.

Uncertain forecasts, difficult

comparisons and serious burdens

on a minority. It is not just a majority

vote.

Duty and rights

Duties

What action respects a duty and the rights and dignity

of those affected? For duty-based reasoning, a

favourable result does not by itself justify the means.

Rights may conflict. Legal,

contractual and human rights have

different foundations.

Justice

Duties and

fairness

Is the decision process fair (procedural justice)? Is the

allocation of benefits and burdens fair (distributive

justice)?

Fairness need not mean identical

treatment. Explain which differences

are relevant.

Virtue ethics

Character

What would an honest, competent and courageous

professional habitually do? Character develops through

learning and practice.

Good character does not

automatically resolve every specific

conflict or replace technical

competence.

Different bases for a fair allocation

Equality: equal shares. Merit: relevant effort, contribution or ability. Need: the level of need. Identify and justify

the relevant basis; do not assume every difference is unfair.

Accountability. A moral agent can judge right and wrong and can be held responsible for actions. Professional

knowledge supports accountability; pressure and automation do not transfer that responsibility away.

Source: Module: 2 > 2.4 Normative Theories; 2.5 Teleological Theories; 2.6 Deontological Theories; 2.7 Virtue Ethics > Page: 57-66.

Study the relevant CPA study-guide sections for fuller detail.

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