Ethics (Accounting) Case free essay sample

This paper seeks to answer given questions in the case study which include commenting on Jackie’s   behavior in relation to possible standards of ethical behavior she violated and evaluating the correctness of Brindon’s instincts and feeling about his reservations in analyzing the data   and the ethics of analyzing the data.   This will determine also whether IMA standards of ethical conduct apply to the issue on behavior. With the assumption that data were acquired by Bill from Jackie Wilson, has Jackie violated any of the ethical standards? Jackie’s behavior is unethical and she violated the standards   of confidentiality and integrity of the Institute of Management Accounts (IMA, 2008a).   Members of the   IMA via CMA certification as regulated by IMA profession are called upon to practice the highest ethical standards in the conduct of their affairs within and outside the premises of their employer. Before one becomes a CMA professional of which Jackie is a member, a pledge is made to adhere to said standards (IMA, 2008b), thus Jackie is bound to practice integrity and confidentiality in her employment with Killborn. We will write a custom essay sample on Ethics (Accounting) Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2.2 Was Brindon correct is terms of his instincts and feeling of some reservation about analyzing the data.   Would it be ethical to analyze the date and do any IMA ethical standards apply? Brindon’s instincts were correct and his feeling of some reservations of analyzing the data is also valid for to do proceed with the analysis of date without verifying how the information was obtained   would amount to   consenting or condoning the unethical behavior committed by Jackie. The IMA standards of ethical conduct require the need maintain confidentiality and integrity (IMA, 2008a) while being members of the association.   If I were Brindon I would move for not conducting the meeting on the ground that doing so is violative of the IMA’s ethical standards of which I am also a member.   I would have to discuss   the matter first with Jackie as member of CMA about the consequences of using data from Killborn including the possible removal of Jackie from IMA on the ground of ethical violation. The decision that must be made is how to price the products of Thomas Electronics Division in relation to competitors including Killborn using the unethically obtained data from Killborn. Using the data could amount to unfair competition since it would be putting Killborn in a disadvantageous position with Thomas knowing the Killborn’s pricing scheme. The   primary stakeholders are the management, the association of the management accounts,   the stockholders as well as investing public. Each of the stakeholders mentioned has a stake on the decision. The alternatives by Brindon and the possible consequences are as follows: First Brindon, should stop proceeding with Bill by advising the latter that Brindon could also be violating some ethical standards. Brindon could possibly lose his job if does it wrongly to Bill. He must therefore practice tact and professionalism in voicing his objection to the use of data.   Second, Brindon could proceed using the data and he risks the penalty of   being discharged from the IMA but he could keep his employment with Thomas Electronics. The primary stakeholders would be affected in such a way that the company will lose its integrity in dealing with the public, and the CMA standards would be compromised. The stockholders could be consenting unethical practice by management and investing public may refuse to deal with the company in the future. The action that must be chosen is just to stop analyzing the data because of the question of ethical standards being violated. Ethical standards are meant to serve a good purpose to organizations, they should not be taken lightly.   The risks that may be caused by not using the data might not be that fatal to Thomas Electronics as there are other sources of data to price competitively its products. The benefits of this course action would mean preserving what is good and ideal for the company and the company could be   benefiting more in the long run when it will have transaction with different parties – that is, the company has credibility and can be trusted accordingly. 3. Conclusion The   best decision is one which would uphold the ethics of the profession since the said standard ethics were precisely made for the benefits of the members of CMA, the stockholders,   the investing public and whole clientele which the profession intends to serve. Complying with requirements of the ethical standard would keep the integrity of the company intact and it would do more good to the company in the long run in keeping its image unscathed to the investors and the public. To be known as ethical company would do most to stakeholders and would fulfill the company’s requirement for corporate governance and attain its mission and vision. Reference: Case study- Managerial Decision Case 3-28 IMA (2008a) Statement of Ethical Professional Practice, {www document} URL http://www.imanet.org/about_ethics_statement.asp, Accessed September 14, 2008. IMA (2008b) Why Should I get my CMA, {www document} URL, http://www.imanet.org/about_faqs.asp, Accessed September 15,2008-09-15