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

Chen, a finance manager, suspects that the chief executive is bribing officials. He is bound by a confidentiality clause in his contract. Which approach best reflects how the ACCA Code expects him to deal with this conflict?

Chen should establish the facts, consider his legal duties, escalate internally, document matters and take advice, disclosing externally only if required by law or justified in the public interest. A contractual confidentiality clause does not override legal duties, and media leaks or destroying evidence would be improper.

  1. AObey the contract clause as it overrides all ethical duties
  2. BImmediately report to the media to avoid any personal liability
  3. CConsider the legal position, escalate internally, document facts and seek advice, with disclosure only where legally required or justified in the public interestCorrect
  4. DConfront the chief executive privately and then destroy the evidence to protect the company

Explanation

The Code expects a structured approach: gather facts, consider legal obligations and fundamental principles, use internal escalation, and seek legal or ACCA advice. Disclosure may be justified where required by law or in the public interest. A contract clause cannot override legal duties, and media leaks or destroying evidence are improper.

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