Ethics in Accounting: A Decision-Making Approach

Chapter 4Virtue, Justice, and Social Responsibility

AM I ETHICAL?

Edith and Thea were a legally married, same-sex couple. When Thea died, she left all of her property to Edith, who claimed that the entire transfer was not subject to estate tax. The IRS acknowledged that mere shifts of assets between spouses upon death are not subject to the estate tax. However, the IRS asserted that this estate tax exemption only applies to transfers between opposite-sex spouses.

Was the IRS's decision ethical?

1. Yes, because only opposite-sex couples were contemplated by the law at the time that the estate tax was enacted
2. Yes, because the IRS has the moral duty to ensure that sufficient tax revenues are available to sustain the provision of public services
3. No, because similarly situated individuals should be treated equally
4. No, because imposing taxes at death is inconsistent with deontology

The SOLUTION is revealed at the end of the chapter.

LEARNING OBJECTIVES

After reading this chapter, you should be able to:

1. Understand and apply the core elements of the distributive justice philosophies developed by Aristotle and Rawls.
2. Understand and apply the core elements of virtue ethics.
3. Develop a personal viewpoint about egoism.
4. Explain stakeholder theory, differentiate among the three common definitions of corporate social responsibility, and develop a personal viewpoint about whether businesses have a duty of social responsibility.

Like many rural towns, Coudersport, Pennsylvania, owed ...