Ethical Considerations in Accounting: A Case Study on Confidentiality

This case study presents an ethical dilemma faced by Brandon, an accountant, who is pressured by his manager to use confidential cost data from Keithwood Electronics obtained through unethical means. The case highlights the importance of adhering to the accounting profession's code of ethics, particularly regarding confidentiality, objectivity, and professional integrity. Brandon is torn between his loyalty to his manager and his professional obligations, which include not disclosing confidential information and avoiding conflicts of interest. The case emphasizes the need for Brandon to uphold ethical standards, seek clarification on ethical guidelines, and potentially seek legal intervention to maintain the integrity of his work. The analysis underscores the importance of ethical decision-making in accounting and the consequences of compromising professional conduct.

A distinguished mark of the accountancy profession is the acceptance of the
responsibility to act in the interest of the public. The responsibility of is not necessarily to
satisfy the needs of an individual client or employer. It is expected that a member to be
straightforward and honest in all professional and business relationships. A member
needs not to allow bias, conflict of interest or undue influence of others to override
professional and business judgment.
Brandon is in a serious dilemma to balance between his profession and the interest of
his manager. Data on Keithwood electronics, concerning labor hours and the monthly
totals for manufacturing costs has been obtained through unprofessional ways.
Keithwood electronics cannot willingly give crucial information on their operations.
Brandon has to resolve this conflict by complying with the fundamental principles. It is
unethical for Rachel to disclose her Firms’ information to Ben without the consent of the
company management. Cost data for Keithwood is confidential and it should not be in
any way released to a third party. The principle of confidentiality imposes a duty on all
members to cease from disclosing confidential information acquired through
professional and business relationships. Ben is trying to use information that has been
acquired improperly to gain an advantage for his business operations. Information
acquired from Keithwood is intended to benefit a third party and there are no legal
grounds to allow use of such information.
Ben Graham cannot substantiate where he has got cost data. He is however insensitive
of the accepted code of ethics. He is only interested in achieving his personal interest.
His integrity is in question and he has obtained Keithwood’s confidential information in
an unacceptable manner. Brandon needs to seek clarity from the section 110 of the
code of ethics, which categorically imposes members to be straightforward and honest
in all professional and business relationships. Brandon need not to associate himself
with such a report because he very well knows that the data he possesses is illegally
obtained.
Brandon should not work in favor of his boss but instead he should strive as much as
possible to compliant with the accepted code of conduct that is in line with his
profession. He should be keen to consider the principle of objectivity, which imposes an
obligation to all members not to compromise their professional or business judgment
due to bias, conflict of interest or the undue influence of others. It is quite evident that
Brandon is experiencing pressure to act on the deliberations from the meeting. He
wants to protect his job at the same time but the acceptable professional ethics
outweighs all these aspects. Brandon should not fall into this trap as this situation
impairs objectivity of his job.
In conclusion, Brandon needs to act with the high level of professionalism. He needs to
engage his manager in and remind him of the accepted code of conduct of his job.

Brandon may even opt to seek legal intervention to ensure that integrity and
effectiveness of his operations is observed. Personal interests should not compromise
the way in each people undertake their roles and responsibilities.