Bear this in mind when making the decision: Fundamental Interest When I make the decision I must ensure that: Well offense The decision should give more b Fairness The distribution of benefits and C than c should be f to the stakeholders to all stakeholders Rights The decision should not of step 2 the rights of SST & the decide maker Describe the proposed decision in the case: To add back $150, 000 to the inventory Step 3: THE 5-Questions by Graham Tucker Challenge the proposed decision described in Step 2 by answering these 5 questions: The Question Discuss your thoughts Ethical or Not Ethical Is the decision profitable? (market values)
To the audit firm To the client (a short term perspective) Is the decision legal? (legal values) Is the decision fair to decision maker (The Audit Firm) & the stakeholders? (social values) Is it the right thing to do? (Personal Values: personal beliefs & responsibility) Note: If it is the right thing to do, then you can go home & proudly tell your parents about it! Does the proposal provide the highest benefit to all & would it benefit stakeholders in future? Would it bring about future sustainability? Is it sustainable development? (environmental values) Referring to responses to all the 5 questions above, is the proposal Ethical or Not.
In order for the proposal to be ethical all 5 answers should be ethical). STEP 4: The MORAL STANDARD Approach (by Velasquez) Unlike the 5-Q that looks at profit, this approach looks at the net benefits. It builds directly on the three fundamental interests of the stakeholders: W Test the proposed decision using the three moral standards July: The Moral Standard Evaluate & discuss Did the decision go against the moral standard? The Moral Standard of JUSTICE (Would the proposed decision lead to a fair & Just distribution of Benefit & The Moral standard of(Would the decision maximize Benefits & minimize B
End Rule Ethics (The outcome should give greatest net good to all, not only in terms of short term profits) Rule Ethics (This key ethics involves respecting individual rights) Social Contract Ethics (It’s about the concept of fairness. Empathic & put yourself in the shoes of the decision maker, would you want to see anything change, if so than that proposed decision was not the right thing to do)) So is the proposed decision Ethical or Unethical (In order for the proposal to be ethical, the action must comply with all the four key ethics) step 6: Propose an Ethical Decision & explain how Jane should do that.
