1. What is the difference between personal and organizational ethics? How do they relate? Can personal ethics conflict with the culture of an organization? Explain. What are the benefits of an organization that chooses to incorporate ethical training into its culture?
2. How do ethics become ground rules for individual and group morals, values, virtues, etc.? How can these ground rules formulate into ethical codes of conduct for employees? Ethics training by organizations is seen by some as the method to controlling the behavior of employees. Do you agree or disagree? Explain.© BrainMass Inc. brainmass.com October 25, 2018, 1:48 am ad1c9bdddf
Personal and Organizational Ethics
Ethics is one of the major concerns of philosophy, broader than what people usually see as that moral compass between right & wrong. Its origin is from the Greek word 'ethica' referring to moral philosophy. Ethics focuses its questions & structure on answering what is right & good in one's pursuit of the 'good life'. There are various ethical frameworks that men adapt to suit their beliefs & their lifestyles influenced by their own set of socialization. What is ethical for me is primarily what I have learned in my formative years concurrently & subsequently improved and influenced by experience. For instance on questions about how I should live my life, my Christian upbringing gave me that moral code of doing what is right according to the basic commandments of the Old & the New Testament. Stealing, lying, causing harm to others and greed - they are actions that for me are deviant. In the same vein, the way to a good life for me is hard work, transparency, quest for knowledge and inspiration. In an organization, just as I have my own ethical viewpoints that influence my actions and conduct in life, the 'Code of Ethics' becomes that professional, social and moral compass that sets the standard. For example, the American Bar Association has come up with 8 Main Concerns in its Model Rules of Professional Conduct. Averaging at 10 subsequent ethical by-laws per concern, it's a thorough ethical standard on conceivable issues in the practice of Law. Despite their genre of expertise (Corporate, finance, prosecution, criminal, real-estate & property, family, etc.) law practitioners in America abide by the Code of Ethics established by the American Bar Association. With States adopting ABA Model Rules, ethical accountability in terms of law practice point out to the Model Rules as the set standard in terms of dealing with the legal profession's ethical concerns. For example, in issues with regards to confidential information, the ABA Model Rule states -
? Confidentiality of ...
Personal and organizational ethics are defined,explained and differentiated with their association/relation analysed for the purpose of explaining how personal and organizational ethics affect & influence each other. Ethics- as acomponent orelement of cultureis also discussedtoexplain how it 'creates' corporate values, group cutlture, ethics, values & virtues - thecollective concensus norm. Ethical codes and ground rules are also discussed in relation to controlling employee behaviour. A word version is attached for easy printing. The solution follows the APA-format and a word version is attached for easy printing.
Ethics and Professional Code of Conduct: Sunny Energy, Tisk & Field
Q7-16 (Accepting the engagement)
Sunny Energy applications Co. sells solar-powered swimming pool heaters. Sunny contracts 100 percent of the work to other companies As Sunny is a new company, its balance sheet has total assets of $78,000, including $24,000 of "stock subscriptions receivable." The largest asset is $42,000 worth of "unrecovered development cost." The equity side of the balance sheet is made up of $78,000 of "Common stock Subscribed."
The Company is contemplating a public offering to raise $1 million. The shares to be sold to the public for the $1 million will represent 40% of the then issued and outstanding stock. There are two officer-employees of the company, Mike Whale and Willie Float, former officers of Canadian Brass Co. Float is being sued by the SEC for missing funds raised by Canadian Brass in a public offering. The funds were used as compensatory balances for loans to a physics Inc. was controlled by Float and is the predecessor for Sunny Energy Applications.
Canadian Brass is being sued by the SEC for reporting improper (Exaggerated) income. Float was chief executive at the time. Many organizations are engaged in researching the feasibility of using solar energy. Most of the organizations are considerably larger and financially stronger than Sunny Energy. The company has not been granted any patents that would serve to protect it from competitions.
a) What potential risk may be present in this engagement?
b) What specific auditing and accounting problems appear to exist?
c) What additional information do you feel you need to know about the company?
d) Do you believe the engagement should be accepted or rejected? Why?
Q7-17 (Communication with predecessor/engagement letter)
The audit committee of the board of director of Unicorn Corp. asked Tisk & Field, CPAs, to audit Unicorn's Financial statements for the year ended December 31, 20X3. Tisk & Field explained the need to make an inquiry of the predecessor auditor and requested permission to do so. Unicorn's management agreed an authorized the predecessor auditor to respond fully to Tisk & Field's inquiries.
After a satisfactory communication with the predecessor auditor, Tisk & Field drafted an engagement letter that was mailed to the audit committee of the board of directors of Unicorn Corp. The engagement letter clearly set forth arrangements concerning the involvement of the predecessor auditor and other matters.
a) What information should Tisk & Field have obtained during their inquiry of the predecessor auditor prior to acceptance of the engagement?
b) Describe what other matters Tisk & Field would generally have included in the engagement letter.