SARTIKA NORIZA 12/MPAXXV/B30 BUSINESS AND PROFESIONAL ETHICS

CHAPTER 2 - ETHICAL BEHAVIOR IN ACCOUNTING : WHAT IS ETHICS?

I. What Is Ethics? Ethics have some definitions : a. The discipline dealing with what is good and bad and with moral duty and obligation. b. A set of moral principles or values. c. A theory or system of moral values. d. The principles of conduct governing an individual or group. Ethics concerned with right or wrong, good or bad. II. Why Study Ethics? a. Ethics allows you to live an authentic life. b. Ethics makes you more successful. c. Ethics allows you to cultivate inner peace. d. Ethics provides for a stable society. e. Ethics may help out in the afterlife.

CHAPTER 3 - ETHICAL BEHAVIOR IN ACCOUNTING : ETHICAL THEORY

I. Egoism Egoism gives priority to the reason it benefits me. When there is a conflict between something good for me and society or a conflict between something good for me and its fairness, egoism recommends the selfserving action. Thus, egoist theory maintains that an individual should always act in his or her own best interest. Egoism has its advocates, even

though it may seem paradoxical for an ethical theory to give primacy to self-interest. Most people think the principle of egoism is inherently unethical it appears to advocate selfishness, and in our society, if not in all societies, selfishness is considered wrong. The difference between selfishness and self-interest, self interest is doing what is in ones own best interest what benefits one. Self interest pursuits are not bad. Selfishness is pursuing ones own interest at the expense of another. II. Utilitarianism John Stuart Mill : the principal maxim of utilitarianism is Actions are right in proportion as they tend to promote happines, wrong as they tend to produce the reverse of happiness. Utilitarianism is Do that action which will bring about the greatest good for the greatest number of people. III. Kant and Deontology Deontologis Greek words deontos (what must be done) Deontoligst is a theory that there are ethical concerns with actions themselves that prohibit the actions, in spite of the consequences. IV. Deontological Ethics what should I do? Imperative rules. Act so that you can will the maxim of your action to become a universal law. Act so as never to treat another rational being merely as a means.

V. The First Formula of the Categorical Imperative Act so that you can will the maxim of your action to become a universal law. If the people promises and they broke the promises because it was inconvenient to keep them, people would end up to trusting each other and society would be chaotic.

VI. The Second Formula of the Categorical Imperative Act so as never to treat another rational being merely as a means. Everyone is morally equal and ought to be treated with respect and dignity. Everyones rights ought to be respected ; no one ought to be used merely as a means or instrument to bring about consequences that benefit the user. VII. Virtue Ethics

It address the question of what a person should be or become rather than the question of what a person should do. Virtue Latin virtus (power of capacity) Greek arte (excellent) The good life was a life in which an individual did things in accord with his or her excellent capacity.

References : Duska, Ronald., Duska, Brenda Shay., & Ragatz, Julie Anne. (2011). Accounting Ethics 2nd Edition. West Sussex (UK): Wiley-Blackwell. Panza, Christopher & Potthast, Adam. Why Study http://www.dummies.com/how-to/content/why-study-ethics.html. tanggal 26 September 2012. Ethics, Diakses