QUT Business School: Ethics and Professional Relationship Report

This report, prepared by a student, delves into the critical role of ethics in business, exploring the application of ethical theories such as deontology and virtue ethics. It analyzes a case involving inaccurate financial reporting, examining the ethical dilemmas faced by a CFO and CEO. The report applies these theories to the scenario, weighing the consequences of different actions and ultimately arguing for transparency and adherence to ethical principles, even when faced with potential negative outcomes. The student emphasizes the importance of ethical behavior in business decision-making and proposes a course of action based on both deontological and virtue ethics, highlighting the need for responsible conduct and accurate financial representation.

Running Head: BUSINESS AND CORPORATION LAW 0
Ethics and Professional Relationship
9/9/2019
Student’s Name

Ethics and Professional Relationship
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Contents
Introduction......................................................................................................................................2
Ethical theories and application.......................................................................................................2
Judgment..........................................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Ethics has an important role in every field of life and the role becomes more crucial when
it comes to commercial activities and business. Every person who is engaged in business
activities is required to behave responsibly and ethically (Businesscasestudies, 2019). Many of
the times, people cannot understand what they exactly want to do to fulfill their ethical
obligations. To resolve such a situation, different ethical theories are there. In the presented
report, the focus will be made on two of such theories. Secondly, a brief judgment regarding the
best course of action will also be discussed. At last, a conclusion will be drawn upon
summarizing findings of the report.
Ethical theories and application
Before moving the discussion towards different ethical theories, first, it is necessary to
understand what these theories are. To answer this question, this is to state that these theories are
different concepts, which provide the basis of decision-making. Each of the theories has different
views, points, and beliefs (Chonko, 2012). The theories selected here are deontology and virtue
ethics theory as the same seems to be the most relevant considering facts stated in the case.
Starting the discussion from the first theory that is deontology, this is to state that the same focus
on duty (Ethics, 2016). It is also known as duty-based ethics. As per this theory, actions, which
follow the rules, are ethical. The theory demands every person to perform his/her duty as per
rules and obligations (White, 2010). In the case presented hereby, there is a presentation of non-
accurate rates to the council and the situation is going on the same since years. Now presenting
the true situation before the council may lead to adverse consequences for employees and other

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stakeholders of the company. The situation became as crucial and critical as the previous CFO
did not play his role well and not bothered himself to take the necessary steps to resolve the
situation. Stakeholders of the company have an interest in the affairs of the company. The
situation of cash is already not good in the company and if the matter would be reported to the
authority then the situation is likely to be worst because of penalties. Here in the situation, an
ethical dilemma is there as one needs to decide what to do. Whether to provide a safeguard to
employees by continuing the present satiation and presenting inaccurate rates or to follow the
duty as per deontology theory and fix the errors this year? The CEO of the company, Harry
wants the situation to be continued and it shows that the person is not following his duties, which
are associated with his role. As per the application of deontology, new CFO of the company is
required to report the matter related to inaccurate rate to the council and presenting true cash
situation of cash in financial statements of the company without considering the consequences.
Another important theory of ethics that is relevant for this case is virtue ethics. This is a
normative ethical theory (Hoddereducation, 2019). As per this theory, ethical action is the one,
which a virtuous person does in a particular situation. It is wrong to state that this theory is more
focused on a person or character rather than an action (BBC, 2019). The subjective theory does
not only provide solutions to a situation but also help a person to achieve ethical character. In
this manner, the theory is concerned about the whole life of a person instead of a particular event
of the episode (Gong, 2010). In other words, this is to state that as per this theory one needs to be
a good person first then only one can take the ethical actions. It means the actions taken by a
moral person believes to be ethical as per virtue ethics theory. In the case presented hereby, the
company is behaving unethically as it is not presenting the true view of cash and rates to the
council and now CEO of the company wants to hide the situation this year too as he thinks that

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revealing truth can destroy the company. The action of Harry does not seem to be ethical
according to virtue ethics. By reviewing, the facts of the case it is very clear that being on the
position of CFO, the person now wants to report the matter to the council. As per the application
of virtue ethics, CFO, as well as CEO of the company, is required to report the matter to council
because in such a situation a person with moral characteristics would have done so.
Judgment
After the above-mentioned discussion, it is far clear that two ethical theories seem to be a
breach in a very clear manner, which is deontology and virtue ethics. It is also clear that what
should be done according to each of these theories. Here it is required to state that being on the
position of the CFO of the company I would go with the use of deontology theories, as it will
lead ethical solutions to the company. It is agreed hereby that reporting the error may bring
adverse impact for employees and other stakeholders. Nevertheless, considering their interest
and continuing with unethics does not seems to be a good thing to do. It is already been 14 years
since the company is mistaking in its financials and not reporting the issue to authorities. If the
situation would not get a fix soon, it will lead closure of the company sooner or later. Secondly
even applying virtue ethics, reporting the issue is a thing to do. Any person with moral
characteristics would fix the issue as soon as knowing the same. If once the mistake has been
done, it does not mean that carrying the same is a solution. If to discuss the final thing to do in
this case, I would report the matter to the council and will develop some alternative course of
action to support the situation of employees. The company can arrange loans or take financial
assistance to pay the liabilities of 14 years, as there is not enough cash in the company.

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Conclusion
Conclusively this is to state that informing the council about the situation is the best
action to do as per the theory of deontology as well as virtue ethics. The lead benefit of this
course of action is the that in the future company will be answering to rate assessment if any
would be there and that time will be able to represent itself with fair and accurate accounts. By
doing this, certain negative outcomes may come but the situation will be fixed for the future and
the company will not be in a situation of fear.

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References
BBC. (2019). Virtue ethics. Retrieved from:
http://www.bbc.co.uk/ethics/introduction/virtue.shtml
Businesscasestudies. (2019). Ethical business practices. Retrieved from:
http://businesscasestudies.co.uk/cadbury-schweppes/ethical-business-practices/the-
importance-of-ethics-in-business.html
Chonko, L. (2012). Ethical Theories. Retrieved from:
https://www.dsef.org/wp-content/uploads/2012/07/EthicalTheories.pdf
Ethics. (2016). Deontology is a theory that suggests actions are good or bad according to a clear
set of rules. Retrieved from: https://ethics.org.au/ethics-explainer-deontology/
Gong, Q. (2010). Virtue ethics and modern society—A response to the thesis of the modern
predicament of virtue ethics. Frontiers of Philosophy in China, 5(2), 255-265.
Hoddereducation. (2019). Normative ethical theories. Retrieved from:
https://www.hoddereducation.co.uk/media/Documents/RS/4_Normative_ethical_theories
_Natural_moral_law.pdf
White, M., D. (2010). Iron Man and Philosophy: Facing the Stark Reality. US: John Wiley &
Sons.