This paper explains how I weigh the need for valid results against the ethical dilemma of using deception. Here is the situation: I took some data from the sales and marketing projections in relation to manufacturing costs. According to my colleague, my analysis of the mid year forecast was right on the button. I have discovered a serious flaw in the forecast recommendation, it was understated. My friend tells me the increase in sales will make up for any downturn the mistake may have caused – at least in the short term. He assures me that whether or not I tell is not going to change anything but how it affects me.
If I tell the truth, it may affect my upcoming promotion and result in a number of people being laid off. Regardless of the results, the truth must be told. According to Graham Ward, the Deputy President of IFAC, “our profession is recognized as contributing to every sector and aspect of the global economy. We are not solely auditors. We are management accountants, business leaders, corporate financiers, business advisers. We should also not forget the large number of accountants who serve the public sector – a hugely important sector which accounts for 40% of global capital expenditure.” Truth-telling is recognized as an ordinary virtue in every field of human endeavor, and it is this virtue that has special relevance to the accounting field.
Telling the truth involves at least three distinct matters, relevance, accuracy and sincerity. This situation calls for telling the truth, the whole truth, and nothing but the truth. As much as I would like to spin the truth and ride it out, my conscience would prohibit this. According to Newton Garter, “a great deal, so far as clear thinking is concerned, hangs on how ‘spinning’s tanks in relation to lying…
The Homework on Truth or Lie
Admit it: You’ve lied. You told your boss you were at home with the flu when really you are spending the day going shopping at the mall. You told your friend that she looked fabulous in that new polka dot dress she just bought. According to the free online dictionary, a lie is defined as a false statement made with deliberate intent to deceive; an intentional untruth; a falsehood. There are ...
legally there is all the difference in the world, as there should be. Even though both spinning and lying are attempts to deceive, only lying involves saying what you know, or ought to know, to be straightforwardly false… morally there is no significant difference between spins and lies. It is the attempt to deceive that is morally relevant, since that in itself, whatever form it takes, violates the Golden Rule.” I have learned in a Philosophy class on Ethics some time ago that the Golden Rule offers a way to make principled choices of behaviors from diverse ethical guidelines. Individuals are led to behave as if every action they might be able to cover up and every motive they might be able to misrepresent will eventually be seen through and exposed to everyone they harm. The Rule requires individuals to admit mistakes quickly, such as this one, to compensate individuals for the harm caused, and to make a firm purpose of change.
However, it is only a guidance of perfection. To gather reasonable force, it must be supplemented by a substantial fear of private dishonor, public shame, or divine retribution. Where none of these fears is substantial, civil and criminal penalties carry an inevitably more selective burden of enforcement. To conclude, I must say that I agree with the use of mitigating factors in determining moral responsibility.
Accountants have great responsibilities to their employers, clients, and to society. The company acts and conducts itself according to the employees that work in that entity. I use the word employee because in ethical thinking there should be no distinction of rank within a company. There are times when executives can be held directly responsible and at the same time, there are cases such as this where employees could be acting unethically without the executives knowing. Neither title of executive or employee equates to moral perfection. Therefore, when a company has acted irresponsibly, its employees must be held liable in a proportionate amount.
WORKS CITEDGarver, Newton, BUFFALO REPORT “The news and the truth” 19 May 2003 Ward, Graham web “Defining the Attributes of Tomorrow’s Accountants” October 22, 2004.
The Essay on Executive Shirt Company
Mr. Collier, per your request, I have analyzed Executive Shirt Company’s current production process in addition to evaluating both Mike and Ike’s recommended processes for custom shirt production. Elements considered during this analysis included: Process types, cycle time for the processes, process efficiencies, and costs. Each element is key to identifying the best course of action for Executive ...
