Accounting Business Reporting for Decision Making

CHAPTER 2 Accounting in society 73

Langenderfer and Rockness (1990)

1. Determine the facts of the case.


2. Determine the ethical issues in the case.


3. Determine the norms, principles and values related to the case.


4. Determine the alternative courses of action.


5. Determine the best course of action consistent with 3 above.


6. Determine the consequences of each possible course of action identified in 4.


7. Decide the course of action.
   St James Ethics Centre (www.ethics.org.au)


8. What are the relevant facts?


9. Which of my values make these facts significant?


10. What assumptions am I making?


11. What are the weaknesses in my own position?


12. Would I be happy for my actions to be open to public scrutiny?


13. Would I be happy if my family knew what I’d done?


14. What will doing this do to my character or the character of my organisation?


15. What would happen if everybody took this course of action?


16. How would I feel if my actions were to impact upon a child or parent?


17. Have I really thought the issues through?


18. Have I considered the possibility that the ends may not justify the means?

FIGURE 2.5 Ethical decision-making models

Source: Langenderfer & Rockness 1990; St James Ethics Centre.

VALUE TO BUSINESS

•   Ethics is fundamental to the study of business and can aid those making decisions.

•   Business decision making has at its roots ethical philosophies such as utilitarianism and Kantianism.

•   Professional bodies issue codes of professional conduct that prescribe the minimum acceptable

standards for their members.

•   Ethical decision-making methods are available to help guide decision makers on the correct course

to take.

•   Regulation can increase as society expects more from business in meeting its responsibilities.