Ethics
-set of moral principles or values that govern the actions and decisions of an individual or group.
According to Velasquez, et al., 2009:
1. Ethics is not the same as feelings and emotions.
2. Ethics is not about legality.
3. Ethics is not about following the culturally accepted norms.
4. Ethics is not science.
5. Ethics is not a religion.
Characteristics and values associated with ethical behavior:
1. Honesty
2. Integrity
3. Trustworthiness and Promise Keeping
4. Loyalty and Confidentiality
5. Fairness and Openness
6. Caring for Others
7. Respect for Others
8. Responsible Citizenship
9. Pursuit of Excellence
10. Accountability
Two primary reasons why people act unethically:
1. The person’s ethical standards are different from those society as a whole, or
2. The person chooses to act selfishly.
Examples of unethical behavior.
▪ Employees taking a long lunch.
▪ Spending too much personal time on the internet at work.
▪ Falsifying Time Sheets.
▪ Helping friends cheat on exams.
▪ Lying about illness or family emergencies to get excused.
,Five Sources of Ethical Approach
1. Utilitarian Approach
2. The rights approach
3. Fairness or Justice
4. Common good approach
5. The virtue approach
1. Utilitarian Approach
Utilitarian seeks the greatest good for the greatest number.
2. The rights approach
Ethical action is one that best protects and respects the moral rights of those affected.
It all starts with a right and the right has corresponding obligation of respecting others, with the
goal of taking action that does not violate other’s rights.
3. Fairness or Justice
Ethical actions treat all human beings equally or if unequally, then fairly based on some defensible
standard.
4. Common good approach
Ethical actions benefit all the members. Respect and compassion for all are requirements of such
reasoning.
5. The virtue approach
Ethical action that focuses on character and virtues. It involves asking questions like “Am I being
honest and fair in this situation?”, “What kind of person will I become if I do this?”
Code of Good Governance for the profession in the Philippines
This code covers the common principles underlying the codes of various profession.
General Principle of Professional Conduct: Professionals are required not only to have an
ethical commitment, a personal resolve to act ethically, but also have both ethical competencies.
, Specific Principle of Professional Conduct:
1. Service to Others
2. Integrity and Objectivity
3. Professional Competence
4. Solidarity and teamwork
5. Social and Civic Responsibility
6. Global Competitiveness
7. Equality of All Professions
AICP Code of Professional Conduct, Rule 101- Independence, an accountant must be
independent in fact and independent in appearance.
Independence in fact- ability to maintain an unbiased attitude towards the course of work.
Independence in appearance- perceptions of other persons such as users of financial statements
that the auditor is free from any act or attitude that would hinder their independence.
Code of Ethics for Accountants
Developed by IESB (International Ethics Standard Board for Accountants), an independent
standard-setting body
Part A: General Application
Part B: Professional Accountants in Public Practice
Part C: Professional Accountants in Business
Part A: General Application
• establishes the fundamental principles of professional ethics for professional accountants
and provides a conceptual framework that professional accountants shall apply.
-set of moral principles or values that govern the actions and decisions of an individual or group.
According to Velasquez, et al., 2009:
1. Ethics is not the same as feelings and emotions.
2. Ethics is not about legality.
3. Ethics is not about following the culturally accepted norms.
4. Ethics is not science.
5. Ethics is not a religion.
Characteristics and values associated with ethical behavior:
1. Honesty
2. Integrity
3. Trustworthiness and Promise Keeping
4. Loyalty and Confidentiality
5. Fairness and Openness
6. Caring for Others
7. Respect for Others
8. Responsible Citizenship
9. Pursuit of Excellence
10. Accountability
Two primary reasons why people act unethically:
1. The person’s ethical standards are different from those society as a whole, or
2. The person chooses to act selfishly.
Examples of unethical behavior.
▪ Employees taking a long lunch.
▪ Spending too much personal time on the internet at work.
▪ Falsifying Time Sheets.
▪ Helping friends cheat on exams.
▪ Lying about illness or family emergencies to get excused.
,Five Sources of Ethical Approach
1. Utilitarian Approach
2. The rights approach
3. Fairness or Justice
4. Common good approach
5. The virtue approach
1. Utilitarian Approach
Utilitarian seeks the greatest good for the greatest number.
2. The rights approach
Ethical action is one that best protects and respects the moral rights of those affected.
It all starts with a right and the right has corresponding obligation of respecting others, with the
goal of taking action that does not violate other’s rights.
3. Fairness or Justice
Ethical actions treat all human beings equally or if unequally, then fairly based on some defensible
standard.
4. Common good approach
Ethical actions benefit all the members. Respect and compassion for all are requirements of such
reasoning.
5. The virtue approach
Ethical action that focuses on character and virtues. It involves asking questions like “Am I being
honest and fair in this situation?”, “What kind of person will I become if I do this?”
Code of Good Governance for the profession in the Philippines
This code covers the common principles underlying the codes of various profession.
General Principle of Professional Conduct: Professionals are required not only to have an
ethical commitment, a personal resolve to act ethically, but also have both ethical competencies.
, Specific Principle of Professional Conduct:
1. Service to Others
2. Integrity and Objectivity
3. Professional Competence
4. Solidarity and teamwork
5. Social and Civic Responsibility
6. Global Competitiveness
7. Equality of All Professions
AICP Code of Professional Conduct, Rule 101- Independence, an accountant must be
independent in fact and independent in appearance.
Independence in fact- ability to maintain an unbiased attitude towards the course of work.
Independence in appearance- perceptions of other persons such as users of financial statements
that the auditor is free from any act or attitude that would hinder their independence.
Code of Ethics for Accountants
Developed by IESB (International Ethics Standard Board for Accountants), an independent
standard-setting body
Part A: General Application
Part B: Professional Accountants in Public Practice
Part C: Professional Accountants in Business
Part A: General Application
• establishes the fundamental principles of professional ethics for professional accountants
and provides a conceptual framework that professional accountants shall apply.
