Ethics Case

Review the IMA Statement of Ethical Professional Practice. Does business interaction in the global market conflict with these ethical standards? Consider outsourcing, sustainability, and social responsibility. Is it possible to remain competitive in a global market and remain true to these ethical standards? Please formulate a 300 word minimum essay exploring this issue. Research and site the business practices of at least two companies that function on at least two continents.

In today's modern world of business, individuals in management accounting and

financial management constantly face ethical dilemmas. For example, if the accountant's

immediate superior instructs the accountant to record the physical inventory at its

original costs when it is obvious that the inventory has a reduced value due to

obsolescence, what should the accountant do? To help make such a decision, here is a

brief general discussion of ethics and the "Standards of Ethical Conduct for Members."

Ethics, in its broader sense, deals with human conduct in relation to what is morally

good and bad, right and wrong. To determine whether a decision is good or bad, the

decision-maker must compare his/her options with some standard of perfection. This

standard of perfection is not a statement of static position but requires the decision-

maker to assess the situation and the values of the parties affected by the decision. The

decision-maker must then estimate the outcome of the decision and be responsible for its

results. Two good questions to ask when faced with an ethical dilemma are, "Will my

actions be fair and just to all parties affected?" and "Would I be pleased to have my

closest friends learn of my actions?"

Individuals in management accounting and financial management have a unique set of

circumstances relating to their employment. To help them assess their situation, the

Institute of Management Accountants (IMA) has developed the following "Standards of

Ethical Conduct for Members."

STANDARDS OF ETHICAL CONDUCT FOR MEMBERS

Members of IMA have an obligation to the public, their profession, the organizations

they serve, and themselves, to maintain the highest standards of ethical conduct. In

recognition of this obligation, the IMA has promulgated the following standards of

ethical conduct for its members. Members shall not commit acts contrary to these

standards nor shall they condone the commission of such acts by others within their

organizations.

Members shall abide by the more stringent code of ethical conduct, whether that is the

standards widely practiced in their country or IMA's Standards of Ethical Conduct. In

no case will a member conduct herself or himself by any standard that is not at least

equivalent to the standards identified for members in IMA's Standards of Ethical

Conduct.

The standards of ethical conduct for IMA members are published in SMA 1C (Statement

on Management Accounting).

COMPETENCE

Members have a responsibility to:

* Maintain an appropriate level of professional competence by ongoing

development of their knowledge and skills.

* Perform their professional duties in accordance with relevant laws, regulations,

and technical standards.

* Prepare complete and clear reports and recommendations after appropriate

analyses of relevant and reliable information.

CONFIDENTIALITY

Members have a responsibility to:

* Refrain from disclosing confidential information acquired in the course of their

work except when authorized, unless legally obligated to do