Ethical Decision-Making Models in Financial Accounting

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:

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FINANCIAL ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Overview of Ethical Decision-Making Models...........................................................................3
Overview of the Ethical Principles..............................................................................................5
Major Stakeholders of the Business............................................................................................7
Main Ethical Issues in the Case...................................................................................................8
Option for Public Relation Manager............................................................................................8
Conclusion.......................................................................................................................................9
Reference.........................................................................................................................................9

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FINANCIAL ACCOUNTING
Introduction
The main purpose of this assessment is to analyze the business decision which is made by
Big Business Tobacco (BBT) which is considered to be on of the big companies which is mainly
operating in Australia. The case study shows that the management of Big Business Tobacco
(BBT) is planning to expand the scale of operations of the business and further enhance the
business in areas of Asia. The management of the company is of the opinion that there is lot of
potential for business in certain areas of China and some other developing countries in Asia. The
management of Big Business Tobacco (BBT) wants to launch that will be sold in packs of 40.
The assessment deals with the issues of ethics and also would be discussing various ethical
models which are available for discussion. The assessment deals with various ethical models
which are applicable on a business and also analyzes the decision which is taken by the
management in terms of ethical standards and regulations which are applicable.
Discussion
Overview of Ethical Decision-Making Models
Business Ethics can be described the rules and regulations which are followed by
individuals in business environment while carrying out the course of operations of the business.
The ethics in business are closely followed in order to ensure that the operations of the business
are within the law and regulations and no instances of misconduct in shown. In order to
effectively follow an ethical code, most of the businesses set their own rules and ethics in order
to ensure that there is smooth operation without any instances of misconduct. Ethical decision-
making models are closely followed by management of companies for ensuring that a level of
ethics is maintained in the business.

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FINANCIAL ACCOUNTING
In order to effectively apply ethical approach in the decision-making process, the
management of the company needs to carry out the following steps in order to ensure that
problem is identified effectively and on the basis of ethical violation, appropriate solution is
being devised by the management of the company.
 Take time to Define the Problem: The first step which the management need to
consider is to appropriately describe the problem which is faced by the business. In this
case, the problem is regarding whether to issue a statutory warning on the packets of
cigarettes even if the law does not make in mandatory. The marketing head is against the
idea of issuing a statutory warning along with packs of cigarettes and the managing
director of the company also supports such a notion (Ni and Van Wart 2015). However,
the public relation manager is of the opinion that the statutory warning should be
attached. Therefore, it is clear that there is a conflict which is needed to be resolved.
 Consult others and seek resources: The management of the company needs to consult
the co-workers and other executive directors for their opinion in order to get advice
regarding how to solve the conflict.
 Think about the Lasting Effect: The decision which is to be taken by the management
should be taken considering the long-term impacts of the decision which is to be taken by
the management (Kolk 2016). The management needs to consider the interest of the
business and also the interest of the stakeholders before arriving at any decision relating
to the conflict.
 Consider any regulations: The management of the company also needs to consider the
regulations which are place in the country where the operation is to be carried out. The