Ethical Decision Making in Business
38 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary focus of ethical decision making in the context of business?

  • Protecting the interests of stakeholders (correct)
  • Maintaining a positive public image
  • Ensuring compliance with laws and regulations
  • Maximizing profits for shareholders

    • Which of the following is a characteristic of an ethical dilemma?

  • A conflict between two or more ethical principles (correct)
  • A decision that requires minimal moral consideration
  • A clear right and wrong answer
  • A situation where ethics is not relevant

    • Which of the following normative ethical theories is based on the idea that an action is right if it promotes the greatest good for the greatest number of people?

  • Utilitarianism (correct)
  • Virtue Ethics
  • Ethical Relativism
  • Deontology

    • What is the primary purpose of the Five Tenets of ethical decision making?

    <p>To provide a framework for evaluating the ethics of a decision</p> Signup and view all the answers

    What is the difference between an ethical problem and an ethical dilemma?

    <p>An ethical problem is a situation where there is a clear right or wrong answer, while an ethical dilemma is a situation where there is no clear right or wrong answer</p> Signup and view all the answers

    What is the ultimate goal of ethical decision making in the context of business?

    <p>To make decisions that are morally justifiable and sustainable</p> Signup and view all the answers

    What is the primary goal of the utilitarian approach in ethical decision making?

    <p>To take the course of action that results in the greatest benefit to the greatest number of people</p> Signup and view all the answers

    Which of the following is a key consideration in the utilitarian approach?

    <p>The possible outcomes of a decision or action</p> Signup and view all the answers

    What is the primary focus of the deontological approach in ethical decision making?

    <p>The moral rightness of the decision, regardless of the outcome</p> Signup and view all the answers

    What is the purpose of the categorical imperative in ethical decision making?

    <p>To test the moral rightness of a decision</p> Signup and view all the answers

    Which of the following approaches emphasizes the importance of fairness and justice in ethical decision making?

    <p>The fairness and justice approach</p> Signup and view all the answers

    What is the primary goal of ethical decision making in the face of dilemmas?

    <p>To result in the least harm to the fewest number of people</p> Signup and view all the answers

    How many primary theoretical perspectives are used to make better ethical decisions?

    <p>5</p> Signup and view all the answers

    What is the purpose of the Five Tenets of ethical decision making?

    <p>To assist in dealing more effectively with ethical dilemmas</p> Signup and view all the answers

    What would have been the consequence of Wessels issuing a qualified audit opinion?

    <p>Linkway would have been placed under public scrutiny</p> Signup and view all the answers

    What is the main principle of the First Tenet?

    <p>Do the least harm to the fewest people</p> Signup and view all the answers

    What would have been the consequence of Wessels stopping the audit and investigating the financial irregularity?

    <p>Linkway would have been exposed, and its stakeholders would have been protected</p> Signup and view all the answers

    What is the main test of Tenet 2?

    <p>Can the decision be made into a universal law that applies to everyone?</p> Signup and view all the answers

    What would have been the consequence of all auditing firms ignoring financial irregularities and issuing unqualified opinions?

    <p>No financial results could ever be trusted</p> Signup and view all the answers

    Why did Wessels' decision go against the First Tenet?

    <p>He did not consider taking an action that would do the least harm to the fewest people</p> Signup and view all the answers

    What is the primary objective of the First Tenet?

    <p>To do the least harm to the fewest people</p> Signup and view all the answers

    What is the test of Tenet 2 in relation to Wessels' decision?

    <p>Would the decision be a universal principle that applies to everyone?</p> Signup and view all the answers

    What question should Wessels have asked himself regarding the financial irregularity?

    <p>Where the funds were received from and whether it was appropriate</p> Signup and view all the answers

    What is the primary purpose of the accounting and auditing profession?

    <p>To safeguard stakeholder funds</p> Signup and view all the answers

    What was the consequence of Wessels' decision to ignore the financial irregularity?

    <p>He and other KPMG partners and executives either resigned or were fired</p> Signup and view all the answers

    What is the main goal of the Tenet 5 questions?

    <p>To assess whether a decision helps an individual meet their purpose or potential</p> Signup and view all the answers

    What should Wessels have considered when deciding whether to ignore the financial irregularity?

    <p>Whether the decision would serve the community as a whole</p> Signup and view all the answers

    What is implied by Wessels' decision to ignore the financial irregularity?

    <p>He was not concerned about the community's well-being</p> Signup and view all the answers

    What is the relationship between the Tenet 5 questions and Wessels' decision?

    <p>The Tenet 5 questions would have led Wessels to make a different decision</p> Signup and view all the answers

    What can be inferred about Wessels' decision-making process?

    <p>He prioritized his personal interests over the community's well-being</p> Signup and view all the answers

    Which type of professional requires formal licensing and is placed above the social efficiency barrier?

    <p>Auditor</p> Signup and view all the answers

    What is the primary function of professional bodies in terms of regulating entrance to the profession?

    <p>To regulate entrance to the profession through education and training</p> Signup and view all the answers

    Which of the following professional bodies is NOT linked to the accounting profession in South Africa?

    <p>Medical Association of South Africa</p> Signup and view all the answers

    What is the primary role of an accountant who performs duties of an accountant?

    <p>To service the private interests of clients</p> Signup and view all the answers

    Which of the following is a characteristic of a 'professing' professional?

    <p>Creates knowledge and is generally in the public interest</p> Signup and view all the answers

    What is the primary responsibility of professional bodies?

    <p>To protect the standing of their professions</p> Signup and view all the answers

    Which of the following professional bodies is responsible for administering a registration system for candidates?

    <p>Professional bodies</p> Signup and view all the answers

    What is the primary distinction between an accountant and an auditor?

    <p>An accountant performs duties of an accountant, while an auditor performs duties of an auditor</p> Signup and view all the answers

    Study Notes

    Ethical Decision Making

    • Ethical decision making is crucial in making decisions that impact shareholders and stakeholders
    • It involves evaluating decisions to determine if they are ethical or not

    Ethical Decisions and Dilemmas

    • Ethical decisions are choices that are made with moral principles in mind
    • Ethical dilemmas occur when there are conflicting moral principles or values

    The Five Tenets of Ethical Decision Making

    • Tenet 1: Ask yourself, who will benefit and who will be harmed? Can we make a decision that harms no one?
    • Tenet 2: Can the decision or action be made into universal law that applies to everyone?
    • Tenet 3: Does the decision or action protect the rights of those involved?
    • Tenet 4: Does the decision or action promote the common good?
    • Tenet 5: Does the decision or action make me feel like the person I am meant to be?

    Five Normative Ethical Theories

    • Utilitarian approach: Take the course of action that will result in the greatest benefit to the greatest number of people
    • Deontological approach: Do what is right because it is the right thing to do, regardless of the consequences
    • Fairness and justice approach: Consider the impact of the decision on fairness and justice
    • Common good approach: Consider the impact of the decision on the common good
    • Virtue approach: Consider the character and moral virtues of the person making the decision

    Professional Bodies

    • Professional bodies have a responsibility to protect the standing of their professions
    • They regulate entrance to the profession, administer a registration system, set technical standards, and issue ethical standards
    • Examples of professional bodies in South Africa include SAICA, SAIPA, CIMA, ACCA, IIA, and IRBA

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    University of Fort Hare Governance and Auditing 211E Ethics Notes

    Description

    Learn about the importance of ethical decision making in business and how to evaluate decisions based on moral principles. Discover the five tenets of ethical decision making and how to navigate ethical dilemmas.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser