Ethics Textbook Chapter 1 Instructor's Manual

Business & Professional Ethics for Directors, Executives & Accountants, 5e,

Leonard J. Brooks and Paul Dunn

South-Western, Cengage Learning, Mason Ohio, 2010

Instructor’s Manual

Chapter 1 Ethics Expectations

Learning objectives ………………………………………………………2

Possible teaching approaches, using cases and readings…………………2

Answers to questions for discussion…………………………………….. 3

Case Notes………………………………………………………………. 6

Multiple Choice Questions………………………………………………38

PowerPoints are in a separate file at www.cengage.com/accounting/brooks

COMMENTARY ON CHAPTER 1: ETHICS EXPECTATIONS

Learning Objectives

Chapter 1 is designed to provide the reader with an analysis of:

a) developments that have changed and are changing the ethical expectations for business, and the accounting profession,

b) resulting expectations for accountability, governance and fiduciary duty,

c) basic concepts in business ethics, stakeholder accountability, reputation, and risk management,

d) implications for corporations, directors and executives, and

e) for professional accountants.

The underlying purpose involved is to sensitize the reader to ethical issues, to provide an overview of the rest of the book, and of the newly emerging framework for modern accountability and governance to which business and its related professions will be expected to adhere.

Key learning points to be developed include:

• ethical issues are pervasive,

• ethics and reputation are inter-related,

• success depends upon maintaining the support of stakeholders through the preservation of trust based on credibility and respect (elements underlying reputation),

• accountability, and the governance mechanisms to achieve success, should be directed at maintaining reputation and the support of stakeholders in the medium- and long-terms as well as the short term, (These mechanisms should not be directed solely at the earning...