9780324013160

Preface

Overview of the Book

PART I Developing an Awareness of the Issues

(98)

The Ethics Environment

(50)

The Ethics Environment for Business: The Battle for Credibility

(6)

Environmental Concerns

(1)

Moral Sensitivity

(1)

Financial Scandals: The Expectations Gap and the Credibility Gap

(1)

Economic and Competitive Pressures

(1)

Bad Judgments and Activist Stakeholders

(1)

Synergy Among Factors and Institutional Reinforcement

(1)

Outcomes

(1)

A New Mandate for Business

(1)

The Response by Business

(3)

Developments in Business Ethics

(2)

Concepts and Terms

(1)

Approaches to Ethical Decision Making Through Stakeholder Impact Analysis

(1)

The Ethics Environment for Professional Accountants: The Expectations Gap

(1)

Questions for Discussion

(1)

Cases

(2)

Bhopal---The Union Carbide

(2)

The Betaseron Decision (A)

(2)

Texaco: The Equador Issue

(3)

Where Were the Accountants?

(1)

To Resign or Serve?

(1)

Readings

The Social Responsibility of Business Is to Increase Its Profits

(4)

Milton Friedman

A Critique of Milton Friedman's Essay ``The Social Responsibility of Business Is to Increase Its Profits''

(4)

Thomas Mulligan

Domini 400 Social Index Gains 7.50% In December, S&P 500 Gains 5.82%: Press Release

(3)

The Whistle-Blower: Patriot or Bounty Hunter?

(5)

Andrew Singer

Managing for Organizational Integrity

(9)

Lynn Sharp Paine

Law Case Summary: Caremark National Inc.

(1)

L. J. Brooks

The Role of the Professional Accountant

(47)

Understanding the Role of a Professional Accountant Is Critical

(1)

Public Expectations of All Professionals

(2)

Public Expectations of a Professional Accountant

(1)

Dominance of Ethical Values Rather than Accounting or Audit Techniques

(2)

Priority of Duty, Loyalty, and Trust in a Fiduciary

(3)

Confidentiality: Strict or Assisted

(1)

Implications for Services Offered

(2)

Assurance and Other Services

(1)

Critical Value-Added by a Professional Accountant

(1)

Standards Expected for Behavior

(1)

Judgment and Values

(2)

Importance to Value-Added

(1)

Development of Judgment and Values

(2)

Sources of Ethical Guidance

(2)

Codes of Conduct

(1)

Laws and Jurisprudence

(2)

When Codes and Laws Don't Help

(1)

Questions for Discussion

(1)

Cases

(2)

The Eagle Has Landed

(2)

Allan Eagleson

The Lang Michener Affair

(3)

Dilemma of an Accountant

(3)

Societal Concerns

(1)

Management Choice

(1)

Maple Leaf Gardens Shenanigans

(2)

To Qualify or Not?

(3)

Readings

The AICPA At 100: Public Trust and Professional Pride

(6)

Liability Crisis in the United States: Impact on the Accounting Profession:

(4)

Appendix: Trends in the Legal Liability of Accountants and Auditors and Legal Defenses Available

(7)

PART II Ethical Governance and Decision Making

(122)

Ethical Governance---Codes and Beyond

100

(80)

Introduction

100

(1)

Governance Systems Come of Age

101

(2)

Ethics Programs

103

(11)

Developing and Managing an Ethical Culture

103

(5)

Corporate Codes of Conduct

108

(1)

Purpose, Focus, and Orientation

108

(2)

Code Content

110

(1)

Effective Implementation

111

(3)

Professional Accounting Guidance Environment

114

(2)

Professional Codes of Conduct

116

(11)

Purpose and Framework

116

(1)

Fundamental Principles and Standards

116

(2)

Rules: General and Specific

118

(1)

Discipline

118

(3)

Interpretations of Rules

121

(1)

Motivations for Changes in Professional Codes

121

(1)

Current Codes of Professional Conduct

122

(1)

International Comparison of Professional Codes

122

(1)

Shortfalls With and In Professional Codes

123

(4)

Issues Not Usually Resolved in Corporate Codes of Conduct

127

(1)

Conclusion

128

(1)

Questions for Discussion

129

(1)

Cases

129

(2)

Bankers Trust: Learning from Derivatives

131

(3)

Barings Bank: Rogue Trader

134

(3)

Philip Services Corp....Into the Dumper

137

(5)

Dow Corning Silicone Breast Implants

142

(2)

Playing God

144

(1)

Economic Reality or GAAP

144

(1)

Multidisciplinary Practices---Ethical Challenges

145

(1)

Team Player Problems

145

(1)

Locker Room Talk (see Chapter 5)

146

(1)

Readings

Appendix A: International Comparison of Main Aspects of Professional Codes of Conduct

147

(13)

The Anderson Committee: Restructuring Professional Standards

160

(1)

G. D. Anderson

Applying the Stakeholder Management Model to the Analysis and Evaluation of Corporate Codes

161

(12)

M. Clarkson

M. Deck

Creating Ethical Corporate Structures

173

(7)

P. E. Murphy

Approaches to Ethical Decision Making

180

(41)

Introduction

180

(1)

Stakeholder Impact Analysis

180

(2)

Overview

180

(1)

Fundamental Interests of Stakeholders

181

(1)

Measurement of Quantifiable Impacts

182

(4)

Profit

182

(1)

Items Not Included in Profit: Measurable Directly

183

(1)

Items Not Included in Profit: Not Measurable Directly

183

(1)

Bringing the Future to the Present

183

(1)

Dealing with Uncertain Outcomes

184

(1)

Identifying Stakeholders and Ranking Their Interests

185

(1)

Summary

186

(1)

Assessment of Nonquantifiable Impacts of Proposed Decisions:

186

(1)

Fairness Among Stakeholders

186

(1)

Rights of Stakeholders

187

(1)

Comprehensive Decision-Making Approaches

187

(4)

5-Question Approach

187

(1)

Moral Standards Approach

188

(1)

Pastin's Approach

189

(2)

Extending and Blending the Approaches

191

(1)

Commons Problems

191

(1)

Developing a More Ethical Action

191

(1)

Common Ethical Decision-Making Pitfalls

192

(1)

Summary of Steps for an Ethical Decision

193

(1)

Conclusion

193

(1)

Questions for Discussion

194

(2)

Illustrative Applications of Stakeholder Impact Analysis

When Does An ``Aggressive Accounting'' Choice Become Fraudulent?

196

(1)

Bribery or Opportunity in China

197

(3)

Proposed Audit Adjustment Case

200

(4)

Cases

Smokers are Good for the Economy---Really

204

(2)

Ford Pinto

206

(2)

The Kardell Paper Co.

208

(2)

Readings

Cost Benefit Analysis

210

(7)

L. J. Brooks, Jr.

Ethical Analysis for Environmental Problem Solving

217

(4)

Graham Tucker

PART III Significant Ethics Issues Facing Business and the Profession

221

(93)

Significant Ethics Issues Facing Business and the Profession

223

(91)

Conflicts of Interest---a Significant Ethical Problem Area

223

(13)

Common Conflicts of Interest Situations in Business

224

(1)

Management to Avoid and Minimize Consequences

225

(1)

Forensics Suspicions: The 20/60/20 Rule

225

(1)

The Gone Theory: Identification of Potentially Harmful Situations and Likely Perpetrators

226

(1)

Agency Theory, Ethics, and Sears

226

(1)

Conflicts of Interest and the Professional Accountant

226

(1)

A Professional Accountant's Fiduciary Relationship

227

(1)

Types of Conflicts of Interest for Professional Accountants

228

(1)

Spheres of Activity Affected

229

(1)

Conflicts of Interest Affecting Services Offered

229

(3)

Conflicts of Interest Involving Improper Use of Influence

232

(1)

Conflicts of Interest Involving Use or Misuse of Information (Confidentiality)

232

(3)

Managing Conflicts of Interest: Awareness and Management

235

(1)

Conclusion

236

(1)

Workplace Ethics---A Significant Ethical Problem Area

236

(4)

Employee Rights

236

(1)

Privacy and Dignity

236

(2)

Fair Treatment

238

(1)

Healthy and Safe Work Environment

239

(1)

Ability to Exercise Conscience

239

(1)

Trust and Its Importance

240

(1)

Conclusion

240

(1)

International Operations---A Significant Ethical Problem Area

240

(4)

Impacts on Local Economies and their Cultures

241

(1)

Conflicts Between Domestic and Foreign Cultures

241

(1)

Bribery, Facilitating Payments

242

(1)

Apparent Cultural Conflicts with Banning Gifts, Bribes, and Facilitating Payments

243

(1)

Moral Imagination

243

(1)

Guidelines for Ethical Practice

244

(1)

Conclusion

244

(1)

Social Accountability and Audit---A Significant Ethical Problem Area

244

(3)

Organizational Objectives for Corporate Ethical Performance (CEP)

245

(1)

Measurement of Corporate Ethical Performance

245

(1)

Reporting of CEP

246

(1)

Audit or Verification of CEP Reports

247

(1)

Conclusion

247

(1)

Crisis Management---A Significant Ethical Problem Area

247

(4)

Conclusion

251

(1)

Questions for Discussion

251

(1)

Appendix A: Corporate Ethical Performance Indicators Used in the Corporate Ethics Monitor

254

(3)

Appendix B: Ethics Audit Program Annual Audit Question

257

Cases

251

(8)

Cases on Conflicts of Interest

Tax Return Complications

259

(1)

Minimal Disclosure

260

(1)

Opinion Shopping

260

(1)

Lowballing a Fee Quotation

261

(1)

Risk Management of Taxes Payable---Is It Ethical?

262

(1)

Cases on Workplace Ethics

Texaco's Jelly Beans

262

(5)

Downsize or Bonus Allocation Decisions

267

(1)

Cases on International Operations

Jail and a German Sub-Contractor

267

(1)

Cases on Crisis Management

The Exxon Valdez

268

(3)

The Brent Spar Decommissioning Disaster

271

(2)

Interesting Times

273

(2)

Readings

``Can't We all Just Get Along: Cultural Variables in Codes of Ethics''

275

(6)

Nancy Roth

Todd Hunt

Maria Stavropoulos

Karen Babik

``Values in Tension: Ethics Away from Home''

281

(8)

Tom Donaldson

``Effective Crisis Management''

289

(8)

Ian Mitroff

Paul Shrivastava

Firdaus Udwadia

``Ethical Problems in Public Accounting: The View from the Top''

297

(10)

Don Finn

Lawrence Chonko

Shelby Hunt

``Some Unresolved Ethical Issues in Auditing''

307

(7)

Sally Gunz

John Mccutcheon

``Ethics in Taxation Practice''

314

Tom Lynch

Business and Professional Ethics for Accountants

0324013167

Summary

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