Do you think the accounting profession's attempt at improving ethical decision-making has been successful or more needs to be done?

The accounting profession has led the way when it comes to making ethics central to decision-making, principally with the Code of Ethics which every accounting professional must follow. In recent years, steps have been taken to improve training, while guidance is continually being updated to encourage good practice.

The following steps can be taken to improve ethical decision making:

Creating a framework

One approach which has gained credence in recent years is the creation of ethical frameworks for employees to follow. The idea is that putting a framework in place helps managers and employees understand the moral dimensions and implications of situations they might meet and helps them ask the right questions and work towards identifying solutions that are in line with the organisation's values. There are numerous models for creating a framework for ethical decision-making. The typical model consists of a series of questions or statements that help users clarify their thoughts and how they see an issue. The idea is to encourage managers and employees to assess a situation, decide what to do, agree a way forward, report and communicate.

Recognise an ethical issue

• Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between two "goods" or between two "bads"?
• Is this issue about more than what is legal or what is most efficient? If so, how?

Get the facts

• What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision?
• What individuals and groups have an important stake in the outcome? Are some concerns more important? Why?
• What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options?

Evaluate alternative actions

• Which option will produce the most good and do the least harm? (The Utilitarian Approach)
• Which option best respects the rights of all who have a stake? (The Rights Approach)
• Which option treats people equally or proportionately? (The Justice Approach)
• Which option best serves the community as a whole, not just some members? (The Common Good Approach)
• Which option leads me to act as the sort of person I want to be? (The Virtue Approach)

Make a decision and test it

• Considering all these approaches, which option best addresses the situation?
• If I told someone I respect -- or told a television audience -- which option I have chosen, what would they say?

Act and reflect on the outcome

• How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders?
• How did my decision turn out and what have I learned from this specific situation?