CIMA BA4 Syllabus A. BUSINESS ETHICS AND ETHICAL CONFLICT - Consequences of ethical and unethical behaviour - Notes 1 / 3
Courses of Action
High Ethical Awareness and Ethical Courses of Action
If professional accountants have a high ethical awareness and take ethical courses of action then the following will be the outcomes:
There will be fewer corporate scandals
There will be more trust in professional accountants and therefore increased employability of accountants
The public will gain trust in business
The business may lose profits
The business may not be financially viable
The solutions to ethical dilemmas will comply with the letter and spirit of the law
The accountant will be able to stand by your solutions to ethical dilemmas in the face of media scrutiny
The accountant's career prospects may be reduced
The accoutant's earning capacity may by reduced
Poor Ethical Awareness and Unethical Courses of Action
If unethical courses of action are taken, then the following will be the outcomes:
Criminal prosecution is possible, for example, if confidential information is supplied in exchange for gifts. (Criminal prosecution is not always the result of an unethical course of action).
Additional legislation and regulation will be introduced
The institute may lose its chartered status
The accountant may be fired by their employer
Many clients leaving the firm because of unethical behaviour