Ethics in Accounting: A Decision-Making Approach

Chapter 2Ethical Principles and Reasoning

AM I ETHICAL?

As the owner of several nearby apartment buildings, you have become concerned about gun violence in your neighborhood. Out of concern for your tenants, you recently informed them that you will not renew their leases if they own or possess a gun. You clearly stated that your policy will be enforced “without any exceptions.”

Several tenants have complained vigorously. One tenant is an avid hunter who claims that your policy violates his Constitutional rights. Another tenant is a policeman who, as a condition of employment, is required to have access to a gun at all times. A third tenant is a woman who is afraid of her abusive ex-boyfriend.

Is your policy ethical?

1. No, because the Constitution protects the private right of gun ownership
2. No, regarding the tenant who justifiably needs protection from her ex-boyfriend
3. Yes, as long as the policy is modified to permit the policeman to retain his gun
4. Yes, under all circumstances

The SOLUTION is revealed at the end of the chapter.

LEARNING OBJECTIVES

After reading this chapter, you should be able to:

1. Distinguish legal issues from ethical issues.
2. Understand how ethical viewpoints vary throughout the world.
3. Identify and begin to apply the ethical principles that govern accountants' professional conduct.
4. Describe the six stages of moral development developed by Lawrence Kohlberg.
5. Apply the ethical decision-making models developed by James Rest to the accounting profession. ...