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ACCA Strategic Professional · Strategic Business Leader · Professionalism, ethical codes and the public interest

Lindqvist Energy's board asks its CFO, Ana, to publish a sustainability report highlighting only favourable emissions data. Legal advice says omitting the adverse data is not unlawful. Ana believes investors would be misled. Which statement best reflects the professional stance Ana should take?

Ana should press for balanced disclosure because professional duty, grounded in integrity and the public interest, goes beyond mere legal compliance. Omitting adverse data that would mislead investors is inconsistent with professional ethics even if it is lawful.

  1. ALegal compliance alone satisfies professional duty, so she should publish the report
  2. BHer duty to act in the public interest and with integrity goes beyond minimum legal compliance, so she should press for balanced disclosureCorrect
  3. CShe should publish the report but disclaim personal responsibility in a footnote
  4. DHer duty is solely to the board, so she should follow its instruction

Explanation

Professional ethics, based on integrity and objectivity, can require more than legal compliance, especially where users could be misled. Disclaiming responsibility in a footnote does not cure the misleading presentation. Loyalty to the board does not override the public interest duty.

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