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

Tobias, an accountant, discovers that his employer has been making payments that look like bribes to a foreign official. He has raised the matter with his line manager, who told him to ignore it. According to the usual ethical conflict resolution approach, what should Tobias do next?

Tobias should escalate internally, for example to higher management, the audit committee or an ethics officer, and keep written records. Disclosure to the press would breach confidentiality prematurely, while ignoring the issue or silently resigning would fail to address the wrongdoing.

  1. AFollow the internal escalation route, such as higher management, the audit committee or the ethics officer, and document the matterCorrect
  2. BImmediately report the matter to the press to protect the public
  3. CResign without telling anyone and say nothing further
  4. DIgnore the matter because his manager is more senior

Explanation

Where a conflict cannot be resolved with the immediate superior, the accountant should escalate through the organisation's internal procedures, keeping written records. Going to the press breaches confidentiality unless law or professional rules permit it. Silent resignation or ignoring the matter leaves the problem unaddressed and may be a breach of integrity.

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