Financial Reporting and Ethics - The Institute of Chartered ...

FINANCIAL REPORTING AND ETHICSbeen observed that whoever acts devoid of thinking, tends to beswayed by anger, fear or enthusiasm. In endeavouring to berational in all ways, there are two basic things to consider. Thefirst consideration is the means which will be used that will attainmost efficiently and effectively the set objectives. The second andhigher level of reasoning or rationality is to consider intelligentlythe quality and adequacy of resources deployed in relation tothe desired ends.(d)The Principle of Refraining from Willed Harm on aHuman BeingThe principle is that it is not right to directly choose to harm ahuman being, no matter how worthy the cause of the action is.Inflicting harm directly is willed when the idea of who does it isjust to inflict the harm. The idea may be an end in itself (forexample, killing during a war for conquest, or out of hatred). Itmay be as a means to achieve a greater end, such as forciblytaking the victim’s property.However, harm is deemed not to be directly willed or inflictedwhen it is only a natural consequence or result of the action ofthe actor which is not intended or undertaken as a means or asan instrument of achieving a further objective. An example ofan unwilling harm will be coincidental deaths of innocentcivilians arising from bombing acts of legitimate military targets.(e)The Principle of Role ResponsibilityNature does not equally distribute the responsibility for all thecomfort and well-being of all men. The special privileges,capacities, attributes and roles allot an individual a priorityresponsibility for specified aspects of the welfare of fellow beings.Those who are in the medical profession care for the sick whilenature cures. Engineers construct roads and bridges andmanufacture vehicles. Accountants advise on finance andmanage it. They keep records, prepare and interpret accounts.The natural distribution of persons into the various professionswhich supply the needs is ‘role responsibility’ arrangement.11.7.3 Ethical Standards and Business EffectivenessA company is an economic agent. Upholding high and consistent ethicalstandards contributes significantly to business effectiveness. Ethicalbehaviour enhances a company’s good reputation, encourages otherfirms and individual persons to trust it. Employees tend to show theirloyalty and commitment to a company which conducts its affairs in anethically sound manner. The attributes highlighted above cannot be222