Chapter One - Ethical Reasoning

Subjective

based on or influenced by personal feelings, tastes, or opinions.

(6CD) Individualism

(IDV) focuses on the degree that the society reinforces individual or collective achievement and interpersonal relationships. In individualist societies (high IDV), people are supposed to look after themselves and their direct family, while in collectivist societies (low IDV), people belong to "in-groups" that take care of them in exchange for loyalty.

(6CD) Long-term orientation

(LTO) versus short-term orientation has been used to illustrate one of the differences between Asian cultures, such as China and Japan, and the United States and United Kingdom. In societies like China and Japan, high LTO scores reflect the values of long-term commitment and respect for tradition, as opposed to low-LTO countries, such as the United Kingdom and United States, where change can occur more rapidly.

(6CD) Power Distance index

(PDI), which focuses on the degree of equality between people in the country's society. A high PDI indicates inequalities of wealth and power have been allowed to grow within society, as has occurred in China and Russia as they develop economically.

(6CD) Uncertainty Avoidance

(UAI) is another cultural value that has important implications for workplace behavior, as it describes the tolerance for uncertainty and ambiguity within society. A high UAI ranking indicates that a country has a low tolerance of uncertainty and ambiguity. Such a society is likely to institute laws, rules, regulations, and controls to reduce the amount of uncertainty.

(6PoC) Fairness

A person of fairness treats others equally, impartially, and openly. In business, we might say that the fair allocation of scarce resources requires that those who have earned the right to a greater share of corporate resources as judged objectively by performance measures should receive a larger share than those whose performance has not met the standard.

(6PoC) Respect

All people should be treated with dignity. We do not have an ethical duty to hold all people in high esteem, but we should treat everyone with respect, regardless of their circumstances in life. In today's slang, we might say that respect means giving a person "props." The Golden Rule encompasses respect for others through notions such as civility, courtesy, decency, dignity, autonomy, tolerance, and acceptance.

Question

An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates Confidentiality

Question

Aristotle believed that Deliberation always preceded the choice of action

(AICPA) Integrity

As a principle of CPA conduct, integrity recognizes that the public trust is served by (1) being honest and candid within the constraints of client confidentiality, (2) not subordinating the public trust to personal gain and advantage, (3) observing both the form and spirit of technical and ethical standards, and (4) observing the principles of objectivity and independence and of due care.

Question

Assume you are taking an exam and you clearly see that your friend is cheating. Your professor does not notice it. What is the most appropriate action for you to take if you are an ethical person? You discuss the matter with your friend after the exam.

In the Capitalization versus Expensing case the main ethical issue is whether Gloria Hernandez should: Talk to the audit committee about the pressure imposed by her supervisor Capitalize or expense $1 million of expenditures Become a whistle blower Report her superiors' actions to the CEO

Capitalize or expense $1 million of expenditures

George is in the middle of a high stakes poker game when he notices what he thinks is cheating by another player. It appears to George that this player took a card from his lap and switched it with a card that he was dealt. If George is a utilitarian thinker, he should: Forget about the whole matter Consider what might happen if he accuses the player of cheating and he is wrong Accuse the alleged cheater of cheating in front of all the other players Speak to the alleged cheater during a regularly scheduled break and tell him not to do it again

Consider what might happen if he accuses the player of cheating and he is wrong

The ancient Greeks thought of the virtues as characteristics of behavior that: Could lead to a good life Support the rights theory Make up the "six pillars of character" Rationalize unethical actions

Could lead to a good life

Which of the following is NOT a likely rationalization a student might use to justify cheating on an exam? Ethical relativism Situational ethics Cultural conditioning Fair treatment

Fair treatment

Which of the following is NOT an element of trustworthiness according to the Six Pillars of Character? Fairness Loyalty Honesty Reliability

Fairness

The most important duty of public accounting is to the: Current stockholders Securities Exchange Commission Management Investing public

Investing public

The biggest problem in implementing a rights approach to decision making is: It is difficult to weigh harms and benefits The interests of others may be subservient to self-interests It relies on moral absolutes It can be difficult to determine criteria to distinguish equals from unequal claims

It relies on moral absolutes

Question

Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked to slow down "You are exceeding the time budget for the audit and making the rest of us look bad," said one staff member. From an organizational, ethical point of view, the best thing for Jason to do is Approach the supervisor to discuss the pressure of fellow staff to slow down on doing audit work.

(Justice) Justice as Fairness

John Rawls (1921-2002) developed a conception of justice as fairness using elements of both Kantian and utilitarian philosophy. He described a method for the moral evaluation of social and political institutions this way. Imagine that you have set for yourself the task of developing a totally new social contract for today's society. How could you do so fairly? Although you could never actually eliminate all of your personal biases and prejudices, you would need to take steps at least to minimize them. Rawls suggests that you imagine yourself in an original position behind a veil of ignorance. Behind this veil, you know nothing of yourself and your natural abilities, or your position in society. You know nothing of your sex, race, nationality, or individual tastes. Behind such a veil of ignorance all individuals are simply specified as rational, free, and morally equal beings. You do know that in the "real world," however, there will be a wide variety in the natural distribution of natural assets and abilities, and that there will be differences of sex, race, and culture that will distinguish groups of people from each other. Rawls says that behind the veil of ignorance the only safe principles will be fair principles, for you do not know whether you would suffer or benefit from the structure of any biased institutions. The safest principles will provide for the highest minimum standards of justice in the projected society.

(6PoC) Citizenship

Josephson points out that "citizenship includes civic virtues and duties that prescribe how we ought to behave as part of a community."45 An important part of good citizenship is to obey the laws, be informed about the issues, volunteer in your community, and vote in elections.

(6PoC) Responsibility

Josephson points out that our capacity to reason and our freedom to choose make us morally responsible for our actions and decisions. We are accountable for what we do and who we are. The judgments we make in life reflect whether we have acted responsibly. Eleanor Roosevelt, the former first lady, puts it well: "One's philosophy is not best expressed in words; it is expressed in the choices one makes...and the choices we make are ultimately our responsibility." A responsible person carefully reflects on alternative courses of action using ethical principles. A responsible person acts diligently and perseveres in carrying out moral action.

Question

Responsibility goes hand in hand with Accountability

Aristotelian Virtues

The Aristotelian virtues are characteristics that Aristotle believes make up an ethical person. In particular, Aristotle points out four cardinal virtues, prudence, temperance, courage, and justice. The philosopher stated believes all other virtues can be encompassed by integrity. To have integrity is to be true to oneself and honest to others. This is an important ethic because not only does it state someone should have virtues but they must believe in their own virtues and act accordingly.

The Six Pillars of Character

The Josephson Institute of Ethics identifies Six Pillars of Character that provide a foundation to guide ethical decision making. These ethical values include trustworthiness, respect, responsibility, fairness, caring, and citizenship. Josephson believes that the Six Pillars act as a multilevel filter through which to process decisions. So, being trustworthy is not enough—we must also be caring. Adhering to the letter of the law is not enough; we must accept responsibility for our actions or inactions.

AICPA Code

The Principles include (1) Responsibilities, (2) The Public Interest, (3) Integrity, (4) Objectivity and Independence, (5) Due Care, and (6) Scope and Nature of Services.

Question

The biggest problem in implementing a utilitarian approach to decision making is It can be difficult to weigh all the consequences of actions.

Bystander Effect

The bystander effect, or bystander apathy, is a social psychological theory that states that individuals are less likely to offer help to a victim when there are other people present.

Ethical Reasoning: A Key Capability What counts as ethical reasoning?

The current description of this key capability is that ethical reasoning is "The ability to reflect on moral issues in the abstract and in historical narratives within particular traditions. Ethical reasoning is the ability to identify, assess, and develop ethical arguments from a variety of ethical positions." For the purposes of this application, it may be useful to think of an ethical reasoning course as one that integrates ethical questions into the intellectual work required in the course. Ethical questions concern judgments of right and wrong, good and bad, as well as matters of justice, fairness, virtue, and social responsibility. Generally, at least one-third of the course should be devoted to exploring the range of normative issues associated with the central topic of the course. It should be part of the plan of the course to move students beyond the standard "that's a matter of opinion" response to normative questions and a discussion of various frameworks for thinking systematically about ethical issues.

In the Better Boston Beans case, what is the ethical dilemma facing Cyndie? Loyalty of co-worker versus trust of co-worker Honesty of the workplace versus the privacy of an individual Trust of co-worker versus the honesty of the workplace Privacy of an individual versus loyalty of co-worker

Trust of co-worker versus the honesty of the workplace

Question

Ty is a rising star at Texas State Country & Western Stores. He is the controller of the company. His wife, Rosie, is the lead auditor of the CPA firm that examines Country & Western's financial statements and issues an audit opinion. Given the nature of the relationships, Rosie would violate what ethical standard if she is allowed to conduct the audit: Independence

A CPA would violate the Due Care Principle if he/she: Specializes in the industry of the client, even offering training classes for other accounting firms on the industry. Undertook a professional engagement without having the requisite background, knowledge and experience. The accounting firm uses two external partner reviews on high risk audits or clients. Performs tax services for an audit client with audit committee approval.

Undertook a professional engagement without having the requisite background, knowledge and experience.

(Teleology) Utilitarianism

Utilitarians follow a relatively straightforward method for deciding the morally correct course of action for any particular situation. First, they identify the various courses of action that they could perform. Second, they determine the utility of the consequences of all possible alternatives and then select the one that results in the greatest net benefit. In other words, they identify all the foreseeable benefits and harms (consequences) that could result from each course of action for those affected by the action, and then choose the course of action that provides the greatest benefits after the costs have been taken into account.

Values

Values are basic and fundamental beliefs that guide or motivate attitudes or actions. In accounting, the values of the profession are embedded in its codes of ethics that guide the actions of accountants and auditors in meeting their professional responsibilities.

Virtue Ethics

Virtue considerations apply both to the decision maker and to the act under consideration by that party. This is one of the differences between virtue theory and the other moral philosophies that focus on the act. To make an ethical decision, I must internalize the traits of character that make me an ethical (virtuous) person, such as the Six Pillars of Character. This philosophy is called virtue ethics, and it posits that what is moral in a given situation is not only what conventional morality or moral rules require but also what a well-intentioned person with a "good" moral character would deem appropriate.

Golden Rule

"Do unto others as you would wish them to do unto you." In other words, we should treat others the way we would want to be treated. In Buddhism "Hurt not others in ways that you yourself would find hurtful." In Confucianism "Do not do to others what you would not like yourself. Then there will be no resentment against you, either in the familt or in the state."

Greek Words

"Greek thinkers saw the attainment of a good life as the telos, the end or goal of human existence. For most Greek philosophers, the end is eudaimonia, which is usually translated as "happiness." However, the Greeks thought that the end goal of happiness meant much more than just experiencing pleasure or satisfaction. The ultimate goal of happiness was to attain some objectively good status, the life of excellence. The Greek word for excellence is arete, the customary translation of which is "virtue." The term ethics is derived from the Greek word ethikos, which itself is derived from the Greek word ethos, meaning "custom" or "character." Morals are from the Latin word moralis, meaning "customs," with the Latin word mores being defined as "manners, morals, character."

Ethics Vs. Law

Being ethical is not the same as following the law. Although ethical people always try to be law-abiding, there may be instances where their sense of ethics tells them it is best not to follow the law.

Benjamin Disraeli

Benjamin Disraeli (1804-1881), the noted English novelist, debater, and former prime minister, said, "When men are pure, laws are useless; when men are corrupt, laws are broken." A person of goodwill honors and respects the rules and laws and is willing to go beyond them when circumstances warrant. As indicated by the previous quote, such people do not need rules and laws to guide their actions. They always try to do the right thing. On the other hand, the existence of specific laws prohibiting certain behaviors will not stop a person who is unethical (e.g., does not care about others) from violating those laws.

Geert Hofstede

Between 1967 and 1973, Dutch researcher Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. Using responses to an attitude study of approximately 116,000 IBM employees in 39 countries, Hofstede identified four cultural dimensions that can be used to describe general similarities and differences in cultures around the world: (1) individualism, (2) power distance, (3) uncertainty avoidance, and (4) masculinity, then (5) Long-term orientation, Michael Minkov expanded it and added (6) Indulgence and Restraint.

Deontology Vs. Teleology

Deontology is the study of ethics or duty. On the other hand, Teleology is the study of finality or end goals. Deontology is more teaches and gives clarity about what is wrong and what is right, whereas teleology lays emphasis on the goal and declaring all means righteous if they yield output. Deontology is based on the rule that what goes around comes around, whereas teleology is based on the belief that any action that produces happiness with negligible pain is justified. Deontology is focused on the means, whereas teleology is focused on the results. Deontology is focused on studying individual values. In contrast, teleology is focused on studying past events that created results.

(Justice) Difference Principle

Difference Principle - The second principle—called the Difference Principle—permits such inequalities and even suggests that it will be to the advantage of all (similar to the utility principle), but only if they meet the two specific conditions. Thus the principles are not strictly egalitarian, but they are not laissez-faire either. Rawls is locating his vision of justice in between these two extremes.

(Teleology) Egoism

Egoism defines right or acceptable behavior in terms of its consequences for the individual. Egoists believe that they should make decisions that maximize their own self-interest, which is defined differently by each individual. In other words, the individual should "[d]o the act that promotes the greatest good for oneself."

Situation ethics (contextualism)

Elements of situation ethics The elements of situation ethics were described by Joseph Fletcher, its leading modern proponent, like this: Moral judgments are decisions, not conclusions Decisions ought to be made situationally, not prescriptively We should seek the well-being of people, rather than love principles. Only one thing is intrinsically good, namely, love: nothing else Love, in this context, means desiring and acting to promote the wellbeing of people Nothing is inherently good or evil, except love (personal concern) and its opposite, indifference or actual malice Nothing is good or bad except as it helps or hurts persons The highest good is human welfare and happiness (but not, necessarily, pleasure) Whatever is most loving in a situation is right and good--not merely something to be excused as a lesser evil Moral theology seeks to work out love's strategy, and applied ethics devises love's tactics. Love "wills the neighbour's good" [desires the best for our neighbour] whether we like them or not The ultimate norm of Christian decisions is love: nothing else The radical obligation of the Christian ethic to love even the enemy implies unmistakably that every neighbour is not a friend and that some are just the opposite. Love and justice are the same, for justice is love distributed Love and justice both require acts of will Love and justice are not properties of actions, they are things that people either do or don't do Love and justice are essentially the same Justice is Christian love using its head--calculating its duties. The Christian love ethic, searching seriously for a social policy, forms a coalition with the utilitarian principle of the 'greatest good of the greatest number.' The rightness depends on many factors The rightness of an action does not reside in the act itself but in the loving configuration of the factors in the situation--in the 'elements of a human act' --i.e., its totality of end, means, motive, and foreseeable consequences.

(Teleology) Enlightened Egoists

Enlightened Egoists take a long-range perspective and allow for the well-being of others because they help achieve some ultimate goal for the decision maker, although their own self-interest remains paramount. For example, enlightened egoists may abide by professional codes of ethics, avoid cheating on taxes, and create safe working conditions. They do so not because their actions benefit others, but because they help achieve some ultimate goal for the egoist, such as advancement within the firm.

The relationship between legal and ethical can best be expressed as: Ethical behavior requires less than legal behavior Always follow the law regardless of consequences for others Ethical behavior requires us to do more than required by the law and less than the law allows Legal and ethical are the same thing

Ethical behavior requires us to do more than required by the law and less than the law allows

Ethical Fading

Ethical fading occurs when the ethical aspects of a decision disappear from view. This happens when people focus heavily on some other aspect of a decision, such as profitability or winning. People tend to see what they are looking for, and if they are not looking for an ethical issue, they may miss it altogether.

Ethical Questioning

Ethical people often do less than is permitted by the law and more than is required. A useful perspective is to ask these questions:, What does the law require of me?, What do ethical standards of behavior demand of me?, How should I act to conform to both?

Ethical relativism

Ethical relativism is the philosophical view that what is right or wrong and good or bad is not absolute but variable and relative, depending on the person, circumstances, or social situation. Ethical relativism holds that morality is relative to the norms of one's culture. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. (Think the Singapore example.)

Ethical Relativism

Ethical relativism is the theory that holds that morality is relative to the norms of one's culture. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. The same action may be morally right in one society but be morally wrong in another. For the ethical relativist, there are no universal moral standards -- standards that can be universally applied to all peoples at all times. The only moral standards against which a society's practices can be judged are its own. If ethical relativism is correct, there can be no common framework for resolving moral disputes or for reaching agreement on ethical matters among members of different societies.

Difference between Ethics and Morals

Ethics and morals relate to "right" and "wrong" conduct. While they are sometimes used interchangeably, they are different: ethics refer to rules provided by an external source, such as codes of conduct for a group of professionals (i.e., CPAs), or for those in a particular organization. Morals refer to an individual's own principles regarding right and wrong and may be influenced by a religion or societal mores. Ethics tend to be more practical than morals, conceived as shared principles promoting fairness in social and business interactions.

Idea with Ethics

Ethics deal with well-based standards of how people ought to act, does not describe the way people actually act, and is prescriptive, not descriptive.

Question

Hofstede's Cultural Dimensions helps explain how workers from different cultures might react in the workplace. The Long-Term Orientation dimension could help explain the different approaches toward: Emphasizing short-term and long-term results.

(6PoC) Trustworthiness

Honesty is the most basic ethical value. It means that we should express the truth as we know it and without deception. The integrity of a person is an essential element in trusting that person. MacIntyre, in his account of Aristotelian virtue, states, "There is at least one virtue recognized by tradition which cannot be specified except with reference to the wholeness of a human life—the virtue of integrity or constancy." The promises that we make to others are relied on by them, and we have a moral duty to follow through with action. Our ethical obligation for promise keeping includes avoiding bad-faith excuses and unwise commitments. Loyalty requires that friends not violate the confidence we place in them. In accounting, loyalty requires that we keep financial and other information confidential when it deals with our employer and client.

Question

In the Harvard Cheating scandal case, using ethical reasoning who is at fault for the situation? Everyone is equally responsible.

Question

In the NYC Subway Death case, the reason that no bystanders helped Ki-Suck Han was probably due to: Bystander effect and moral blindness

Question

Internal rewards of accounting practice include: Integrity and Excellence

Justice

Justice is usually associated with issues of rights, fairness, and equality. A just act respects your rights and treats you fairly. Justice means giving each person what she or he deserves. Justice and fairness are closely related terms that are often used interchangeably, although differences do exist. While justice usually has been used with reference to a standard of rightness, fairness often has been used with regard to an ability to judge without reference to one's feelings or interests.

If one's reputation is tainted it may create a: Loss of objectivity Conflict of interests Loss of independence Lack of trust

Lack of Trust

Moral Blindness

Moral blindness is defined as the temporary inability to see the unethical side of a certain context or situation. It is often caused by external factors due to which an individual is unable to see the immoral aspect of their behavior in that particular situation.

(AICPA) Objectivity and Independence

Objectivity requires that all CPAs maintain a mental attitude of impartiality and intellectual honesty and be free of conflicts of interest in meeting professional responsibilities. Independence is required both in fact and in appearance. Because it is difficult to determine independence in fact inasmuch as it involves identifying a mindset, CPAs should avoid relationships with a client entity that may be seen as impairing objective judgment by a "reasonable" observer.

Teleology

Recall that telos is the Greek word for "end" or "purpose." In teleology, an act is considered morally right or acceptable if it produces some desired result such as pleasure, the realization of self-interest, fame, utility, wealth, and so on. Teleologists assess the moral worth of behavior by looking at its consequences, and thus moral philosophers often refer to these theories as consequentialism. Two important teleological philosophies that typically guide decision making in individual business decisions are egoism and utilitarianism.

(Deontology)

Rights Principles - A right is a justified claim on others. For example, if I have a right to freedom, then I have a justified claim to be left alone by others. Turned around, I can say that others have a duty or responsibility to leave me alone. Formulations of rights theories first appeared in the seventeenth century in writings of Thomas Hobbes and John Locke. One of the most important and influential interpretations of moral rights is based on the work of Immanuel Kant (1724-1804), an eighteenth-century philosopher. Kant maintained that each of us has a worth or dignity that must be respected. This dignity makes it wrong for others to abuse us or to use us against our will. Kant expressed this idea as a moral principle: Humanity must always be treated as an end, not merely as a means. To treat a person as a mere means is to use her to advance one's own interest. But to treat a person as an end is to respect that person's dignity by allowing each the freedom to choose for himself.

Deontology deals with: Rights of others and duties toward them Following prescribed virtue characteristics Consequences of actions Following the law as an element of ethical behavior

Rights of others and duties toward them

(Teloelogy) Rule-utilitarians

Rule-utilitarians, on the other hand, claim that we must choose the action that conforms to the general rule that would have the best consequences. For the rule-utilitarian, actions are justified by appealing to rules such as "never compromise audit independence." According to the rule-utilitarian, an action is selected because it is required by the correct moral rules that everyone should follow. The correct moral rules are those that maximize intrinsic value and minimize intrinsic disvalue.

The country with the highest Power Distance score is: Russia United Kingdom United States Japan

Russia

Situation ethics

Situation ethics is a term first coined in 1966 by an Episcopalian priest, Joseph Fletcher, is a body of ethical thought that takes normative principles—like the virtues, natural law, and Kant's categorical imperative that relies on the universality of actions—and generalizes them so that an agent can "make sense" out of one's experience when confronting ethical dilemmas. Unlike ethical relativism that denies universal moral principles, claiming the moral codes are strictly subjective, situational ethicists recognize the existence of normative principles but question whether they should be applied as strict directives (i.e., imperatives) or, instead, as guidelines that agents should use when determining a course of ethical conduct. In other words, situationists ask: Should these norms, as generalizations about what is desired, be regarded as intrinsically valid and universally obliging of all human beings?

Decisions that are made based on the underlying circumstances of a particular matter can be best characterized by: Judgmental Individualism Ethical Collectivism Situational ethics Ethical relativism

Situational ethics

(AICPA) Due Care

The due care standard (diligence) calls for continued improvement in the level of competency and quality of services by (1) performing professional services to the best of one's abilities, (2) carrying out professional responsibilities with concern for the best interests of those for whom the services are performed, (3) carrying out those responsibilities in accordance with the public interest, (4) following relevant technical and ethical standards, and (5) properly planning and supervising engagements. A key element of due care is professional skepticism, which means to have a questioning mind and critical assessment of audit evidence.

(AICPA) Scope and Nature of Services

The due care standard also relates to the scope and nature of services performed by a CPA. The latter requires that CPAs practice in firms that have in place internal quality control procedures to ensure that services are competently delivered and adequately supervised and that such services are consistent with one's role as a professional. Also, CPAs should determine, in their individual judgments, whether the scope and nature of other services provided to an audit client would create a conflict of interest in performing an audit for that client.

(6PoC) Caring

The essence of caring is empathy. Empathy is the ability to understand, be sensitive to, and care about the feelings of others. Caring and empathy support each other and enable a person to put herself in the position of another. This is essential to ethical decision making.

(Justice) Liberty Principle

The first principle—often called the Liberty Principle—is very Kantian in that it provides for basic and universal respect for persons as a minimum standard for all just institutions. But while all persons may be morally equal, we also know that in the "real world" there are significant differences between individuals that under conditions of liberty will lead to social and economic inequalities.

Who first wrote: "Oh! what a tangled web we weave, When first we practice to deceive!"?

The quote "Oh! What a tangled web we weave, when first we practice to deceive" refers to how complicated life becomes when people start lying. It originally referred to a love triangle in the play "Marmion" by Sir Walter Scott. Marmion; A Tale of Flodden Field (published in 1808; 209 years ago) is an historical romance in verse of 16th-century Britain, ending with the Battle of Flodden (1513), by Sir Walter Scott. It was published in Edinburgh, printed by Ballantyne and Co. for Archibald Constable.

(AICPA) The Public Interest

The second principle defines the public interest to include "clients, credit grantors, governments, employers, investors, the business and financial community, and others who rely on the objectivity and integrity of CPAs to maintain the orderly functioning of commerce." This principle calls for resolving conflicts between these stakeholder groups by recognizing the primacy of a CPA's responsibility to the public as the way to best serve clients' and employers' interests.

Deontology

The term deontology is derived from the Greek word deon, meaning "duty." Deontology refers to moral philosophies that focus on the rights of individuals and on the intentions associated with a particular behavior, rather than on its consequences. Deontologists believe that moral norms establish the basis for action. Deontology differs from rule-utilitarianism in that the moral norms (or rules) are based on reason, not outcomes. Fundamental to deontological theory is the idea that equal respect must be given to all persons. In other words, individuals have certain inherent rights and I, as the decision maker, have a duty (obligation, commitment, or responsibility) to respect those rights.

(AICPA) Responsibilities

The umbrella statement in the Code is that the overriding responsibility of CPAs is to exercise sensitive professional and moral judgments in all activities. By linking professional conduct to moral judgment, the AICPA Code recognizes the importance of moral reasoning in meeting professional obligations.

(Virtue) Information

Virtue theorists place less emphasis on learning rules and instead stress the importance of developing good habits of character, such as benevolence. Plato emphasized four virtues in particular, which were later called cardinal virtues: wisdom, courage, temperance, and justice. Other important virtues are fortitude, generosity, self-respect, good temper, and sincerity. In addition to advocating good habits of character, virtue theorists hold that we should avoid acquiring bad character traits, or vices, such as cowardice, insensibility, injustice, and vanity. Virtue theory emphasizes moral education because virtuous character traits are developed in one's youth. Adults, therefore, are responsible for instilling virtues in the young.

Question

When an employee is given a job evaluation, he has a right to expect: Fair evaluations

(Justice) Distributive Justice

When people differ over what they believe should be given, or when decisions have to be made about how benefits and burdens should be distributed among a group of people, questions of justice or fairness inevitably arise. These are questions of distributive justice.

Civility

is not peripheral to ethics, dealing merely with manners, proper etiquette, and politeness. It runs much deeper and requires restraint, respect, and responsible action both in one's personal behavior and professional activities. Remember, ethics deals in broad terms with how we treat others. Two pertinent questions are: Can you be civil and not entirely ethical? Can you be ethical and not terribly civil? The answer to the first is a qualified "yes." You can be well behaved and gracious to others but still be motivated by non-ethical values such as greed. The problem is you may wind up using others to advance your self-interests. The answer to the second is "no." Treating others badly and with disrespect means you have not committed to act in accordance with the pillars of character.

Integrity

means that a person acts on principle a conviction that there is a right way to act when faced with an ethical dilemma.

Utilitarian philosophers are divided into two types: act utilitarian and beneficial utilitarian. ethical utilitarian. egoistic utilitarian. rule utilitarian.

rule utilitarian.

Benevolence

the quality of being well meaning; kindness.