Skip to content

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

Kwame, a finance manager, is told by the chief executive that unless he approves an overly optimistic profit forecast for the bank, he will be dismissed. Kwame believes the forecast is misleading. Which statement is MOST appropriate?

Kwame should refuse to be associated with the misleading forecast, pursue internal escalation and consider independent advice from his professional body or legal counsel. Approving it, however privately he objects, would breach integrity, and leaking information to competitors would breach confidentiality.

  1. AHe should approve the forecast because loss of his job would harm his family and this outweighs his duty
  2. BHe should approve it but add a private note in his own files
  3. CHe should refuse to be associated with the misleading forecast, seek resolution through internal channels and consider obtaining independent advice from his professional bodyCorrect
  4. DHe should leak the forecast to the bank's competitors

Explanation

This is an intimidation threat. Safeguards include refusing to be associated with misleading information, using internal escalation and seeking confidential advice from the professional body or legal counsel. A private note does not stop misleading the bank, and personal hardship does not justify breaching integrity. Leaking information would breach confidentiality and be improper.

Did you get it right without looking?

One question tells you little. A timed set on Ethical conflicts and dilemmas shows your real accuracy, how long you take and where you lose marks.

Practise Ethical conflicts and dilemmasFree diagnostic mock

More Ethical conflicts and dilemmas questions