question archive You are a professionally qualified accountant, recently retired from your position as the financial director of Company A, which is a listed company
You are a professionally qualified accountant, recently retired from your position as the financial director of Company A, which is a listed company
Subject:AccountingPrice: Bought3
You are a professionally qualified accountant, recently retired from your position as the financial director of Company A, which is a listed company. Company A operates in the heavy engineering industry and you worked there for over 12 years. Prior to this, you had spent 10 years as an audit partner in a large accountancy firm.
You receive a phone call from a head-hunter with an executive recruitment agency, acting on behalf of a company's nominations committee. After the usual small talk, he cuts to the chase:
"You have been recommended to me as a suitable candidate for a very prominent non-executive role that is available at the moment. The company, Company B, is a listed company, seeking a non-executive director who will also serve as the chair of the company's audit committee." He adds that Company B is a well-known financial services company.
You are not struggling financially. You have a reasonable pension, but the extra cash from this role would come in handy. Additionally, you are finding it difficult to fully unwind after years spent working to tight deadlines and coping with difficult challenges on a daily basis. Therefore, you find this potential opportunity very attractive.
You advise the head-hunter that you will think about his proposal and get back to him as to whether you wish to be considered for the role. You hang up and then consider the matter in greater detail. Your first instinct was to say to him, whilst he was on the phone, that you wished to be considered for the position. However, due to your prudent nature, you decided that it would be wise to give yourself some time to reflect fully on the issues before making a decision.
The New Job
You are keen to be put forward for this role, but you have a nagging doubt at the back of your mind: you have no work experience in the financial services sector. Twelve months ago your doubts may not have been so acute, but recent well-publicised events have certainly raised your awareness of the complexities of the transactions which many financial services companies undertake. You are caught between two stools: on one hand, there is little doubt that your business acumen will be of benefit to Company B; on the other hand, you feel that your lack of expertise in this sector will leave you struggling to contribute constructively at times.
Required:
a) Outline the relevant ethical principle that should be considered in this case (8 marks)
b) Use the six (6) step approach to resolve this ethical dilemma (17 Marks)
