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Ethics and Governance: Case Study Analysis

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Added on  2020-09-29

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This report discusses the importance of ethics in contemporary business environment and organizations. It analyzes a given scenario and its ethical implications using various theories & models such as Teleology, Egoism, Utilitarianism, & Deontology, AAA model for ethical decision making & APES 110 (Code of Ethics for Professional Accountants). The report also provides recommendations based on the evaluation of alternatives available.

Ethics and Governance: Case Study Analysis

   Added on 2020-09-29

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ACCT20080 Ethics and Governance (Term 2)Assessment 1 – Individual AssignmentCase study: From bad to worse Submitted by: Muditha Sampath Bandara Ekanayaka (12067793)Central Queensland University Brisbane Australia
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Executive Summary Ethics play a vital role in contemporary business environment and organizations when it comesto decision making where it is considered with utmost importance all around the world. Beingethical is encouraged by various codes of ethics, professional bodies and business ethics actssimultaneously with corporate governance as well. In this report considering a given scenarioand its ethical implications a study has carried out with the objective of explaining the ethicalimplications using theories & models such as Teleology, Egoism, Utilitarianism, & Deontology,AAA model for ethical decision making & APES 110 (Code of Ethics for ProfessionalAccountants). Upon the identification the relevant facts, background of the ethical dilemma & relatedtheoretical aspects of the case has been studied with regard to the ethical teachings & theoreticalfindings of accredit scholars. Based on the AAA ethical decision making model an ethicaldecision has been developed evaluating the alternatives available. Relevant fundamentalprinciples, its respective threats & available safeguards were assessed in respect of theimplications related to code of ethics for Professional Accountants APES 110 in order to providethe recommendations by evaluating the alternatives.
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IntroductionBusiness Ethics can be defined as the morals, values & standards on which the business operations are performed and decisions are made. The discussion of various theories related to ethics has begun long time ago & numerous scholars have contributed to such theories. In the current context of corporate world it uses various theoretical approaches to analyze the business ethics & its related aspects. Business ethics are closely linked with individual ethics and those ethics are based on philosophical ethicaltheories. From prevailing philosophical theories, both consequentialistic & non- consequentialistic theories such as theory of teleology, egoism, utilitarianism, deontology have used for the below study in order to analyze the ethical implications of the given case. And there are various ethical decision making models which the professionals can apply and outof which the AAA model has obtained a considerable attention in ethical decision making. Thecode of Ethics for professional Accountants to act ethical namely APES 110, consist of fivefundamental principles of integrity objectivity professional skill and due care, confidentiality andprofessional behavior. And there are various threats influencing those fundamentals such as self-interest threat, self-review threat, and familiarity, advocacy and intimidation threat. And there areproposed safeguards for those threats by the APES110.Part A01. According to theory Egoism act is deemed to be right if an individual selects the option whichproduce the highest utility for he/she where there are no other alternatives which surpassesselected option’s utility.[CITATION FFe78 \l 1033 ]. Concept Egoism determines rightness or theacceptability of an act or a behavior in respect of the consequences it produces for an individual.[ CITATION Fer14 \l 1033 ]. When Mr.Godrich making the decision not to reveal the error to anyoneor not to compensate the underpaid workers he only considered the risk of facing an insolvency.With that decision he ensured that company will not be affected from any future harm whichcould result from attempting to rectify the error made by them & he completely neglected the
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affected party-underpaid workers in his decision making as soon as he heard about the risk ofinsolvency. In that perspective it can be argued that Mr.Godrich has acted as an egoist whomakes decisions with the intention of maximizing his self-interest.Deontological ethics (from the Greek to deon, meaning duty, obligation), is an ethical theory based onconcepts of duty and rights that can be demonstrated by reason alone and exist independent ofexperience. This set of unchanging formal and normative moral principles need to be applied in order toconfer moral value on any ethically relevant deedA person can be characterized as an egoist if an individual possesses characteristics such aspower and authority, pleasure, reputation & someone who is interested in maximizing self-interest.[ CITATION Fer14 \l 1033 ]. By having a big office with expensive equipment and furniturealong with his authoritative commanding behavior to his subordinates he shows his superiority &power. Further, his satisfying and prominent career has built him a reputation within theorganization as well as outside world by which he is considered to be an achiever. 02.As per utilitarian school of thoughts ethicality/morality should be evaluated of an action based byconducting cost benefit analysis where it is considered ethical if its consequences surpassesnegativities of the outcome. [ CITATION Guy15 \l 1033 ]Upon the identification of the issue Mr.Godrich has requested a full financial plan with optionsavailable which is a characteristic of a utilitarian to access the all available options & its impacts.According to utilitarianism theories, it pursues greatest good for greatest number of people[ CITATION Fer14 \l 1033 ]. But as soon as he heard about the risk of company being bankrupt hedidn’t consider the other options available. But according to utilitarianism an alternative shouldbe selected after evaluating the utility of all options & only if there is no other alternative withhigher utility[ CITATION FFe78 \l 1033 ]. Consequently he gave the priority to the company and itssurvival which is not the way a utilitarian would have solved the issue because he completelyneglected the victimized party from their misconduct.
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