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Chapter 9 - Coggle Diagram
Chapter 9
Doing the right thing
Conflict of interest
- When one party is in a position to derive some form of benefit from actions or decisions taken made when acting in an official capacity
OR
- One party's actions or objectives are incompatible with another
Resolving ethical conflicts
Influence by range of factors:
- The attitude of leader
- Leadership style
- The culture and presence of code of ethics or code of conducts
- The presence of laws or regulations
- The existence of guidelines
- The extent of the power and interest of stakeholder groups in conflict
Responsible leadership
- Takes into account the needs and concerns of all stakeholders including minority and non-verbal stakeholders.
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Threats
Advocacy
- Assumes the client's part in a dispute or act as their advocate
Self-interest
- Individual personal interest or relationship could compromise the objectivity and professional judgement.
Intimidation
- Deterred from acting objectively by threats, actual or perceived.
Familiarity
- Having personal connection with client
Self-review
- Provides services other than audit services and reviewing their own work
Doing the wrong thing
Fraud
- Intentional act to gain advantage by deception
Factors
- Pressure: Financial problems that cannot be solved legitimately
- Opportunity: Low perceived risk of getting caught or can easily be concealed
- Rationalisation: Deserve the proceeds as they are the victims of the board
Bribery
- Influencing someone to behave inappropriately by means of money, goods or services
Corruption
- Deviation from honest behaviour
Aspect of bribery
- Abuse of a system
- Bid rigging
- Cartel
- Influence peddling
Consequences
- Lack of honesty
- Conflict of interest
- International risk management
- Economic issues
- Damage reputation
How to combat
- Establish culture
- Code of conduct
- Risk assessment
- Conduct of business
- Reporting and whistleblowing
- Monitoring