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ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas

A finance manager is pressed by the managing director to delay recording a large expense so that a profit target is met. The manager follows a framework and considers the alternative courses of action. Which step comes immediately AFTER identifying the alternatives?

After identifying alternatives, the manager should evaluate each against the fundamental ethical principles and the likely consequences for stakeholders. Only once that evaluation is complete should a course of action be chosen and implemented. Skipping evaluation risks a poorly reasoned or unethical decision.

  1. ADeciding the action and implementing it
  2. BEvaluating the alternatives against the fundamental principles and the consequences for stakeholdersCorrect
  3. CIgnoring the instruction and taking no further steps

Explanation

Frameworks follow a sequence: facts, issue, principles, alternatives, then evaluation of those alternatives against principles and stakeholder consequences, and only then the decision and action. Deciding before evaluating would skip a key step.

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