To be effective, a Corporate Code of Conduct must be reinforced by a
comprehensive ethical culture.
Corporate Codes of Conduct should encourage employees to behave at
higher levels of Kohlbergs stages of moral development:
Subprime Lending Fiasco U.S. Housing Bubble
U.S. Housing Bubble
High House Prices
Transfer of Risks
Morals define personal character, while ethics stress a
social system in which those morals are applied. In
other words, ethics point to standards or codes of
behavior expected by the group to which the individual
Morals arise more as a s
HEATHS SEVEN RATIONALIZATIONS OF UNETHICAL ACTIONS
Denial of responsibility.
Denial of injury.
Denial of the victim.
Condemnation of the condemners.
Appeal to higher loyalties.
Everyone else is doing it.
Source: 7 Neutralization/Rat
WHAT MAKES A PROFESSION
Provision of important services to society
Training and skills largely intellectual in character
Generally licensed or certified
Represented by organisa
STEPS TOWARD AN ETHICAL DECISION
The Ethical issues
Rank interests in importance
Ethics & Governance: A Timeline of Important Events
Scandal, Ethical Issue or Development
Stock Market Crash, The Great Depression
U.S. Securities & Exchange Commission established & Glass-Steagall Act
Fannie Mae founded
Investment Advisers Act
Lecture notes for ACCT/PCAOB/TSBPA Ethics:
1. What makes a CPA license valuable:
Time, effort and education it takes to get the license.
Continuing education after receiving the license.
Monopoly on public accounting services.
All of the ab