CHAPTER 2 Accounting in society 83Amcor was also recognised in a report released by the Association of Chartered Certified
Accountants (Australia) for our overall integration of material non-financial concerns into
company vision and strategy, management systems and risk management framework. The
report also ranked Amcor the best amongst the ASX50 companies for demonstrating the inter-
dependencies between environmental and social matters, and financial performance.
Amcor continues to be listed on global and regional market indices, including the Dow
Jones Sustainability Asia Pacific Index; the Carbon Disclosure Leadership Index, Materials
Sector, Australia and New Zealand region; and the FTSE4Good index.
Required
Suggest why organisations would use resources to apply for sustainability awards and would be
concerned about their rating on sustainability market indices.2.54 Ethics, corporate governance and sustainability LO7
Underlying the professional code of ethics is an obligation to act in the public interest. Utili-
tarianism espouses the need to act and make decisions with consequences in mind. Practically,
business decisions are often made based on a consideration of the decision’s effect on the busi-
ness. How can any business manager merge the principles of utilitarianism — acting in the public
interest — while ensuring growth and prosperity of the organisation they are managing? Discuss.2.55 Corporate governance LO3
Corporate governance relates only to large public enterprises and is therefore irrelevant for small
business. Discuss this statement.Problems
BASIC | MODERATE | CHALLENGING
2.56 Corporate governance LO4
The notes to the 2015 consolidated financial statements of JB Hi-Fi Ltd appear in the appendix of this
text. Examine these notes together with other information from the website (www.jbhifi.com.au) to
investigate JB Hi-Fi Ltd’s compliance with principle 4 (safeguard the integrity of financial reporting)
of the ASXCGC Corporate governance principles and recommendations.
Form teams to investigate the recommendations under principle 4 as presented in this chapter.
The teams should examine one different recommendation each.2.57 Ethics LO6
Erle Smith is a financial controller with Practical Solutions Ltd, an entity that sells software pro-
ducts to accounting firms and small businesses. At present, Mr Smith is analysing a number of
software packages that focus on job costing. He needs to pick one package that he can recommend
to his clients. Each software vendor is keen to have their software selected as it will result in a
significant increase in sales for their company.
Anitah Loh is a salesperson for software company Dogto Ltd. She has told Mr Smith that he
should go to Los Angeles to analyse her company’s software package properly, because the pro-
gramming experts there could give him a thorough demonstration. Ms Loh has also suggested that
he take his family, so that he feels relaxed in a foreign country and is in the right frame of mind to
undertake his analysis. She also suggests that Disneyland is worth visiting while Mr Smith is over
there. Dogto Ltd would pick up the expenses for the trip.Required
a. Do you think Mr Smith should take the trip? Outline any ethical concerns involved.
b. Do you think the management of Practical Solutions Ltd should allow Mr Smith to go on
the trip?
c. Do you think that Practical Solutions Ltd should have a code of conduct? What would be the
advantages and disadvantages to Practical Solutions Ltd of having a code of conduct?