Ethics

Question 1

What does the term ethics encompass

Answer 1

Doing the right thing in circumstances

Principles, values and beliefs which influence judgement and behaviour

Taking a responsible approach

Question 2

What is the relationship between ethics and sustainability

Answer 2

It is ethical to operate in a sustainable manner

Ethical business practices contribute to sustainability of organisations, requiring consideration of people (not just profit)

Ethics can be applied in all aspects of sustainability

Question 3

What are the three pillars of sustainability

Answer 3

Environmental sustainability

Social sustainability

Economic (financial sustainability)

Question 4

Description of pillar- Environmental sustainability

Answer 4

Business activities that conserve the natural resources for current and future generations.

Activities include

Do not harm nature/ biodiversity

Do not deplete renewable resources e.g water/trees or non-renewable resources e.g fossil fuels

Take account/ address climate change

Question 5

Description of pillar- Social

Answer 5

Meeting the needs of the wider group of stakeholders and society.

Activities shouldn’t harm individuals

Activities include

Fair treatment of employees

Avoiding unethical activities e.g bribery

Protecting human rights e.g equality

Question 6

Description of pillar- Economic (financial) sustainability

Answer 6

Economic growth/providing returns to shareholders, without harming social and environmental sustainability.

Question 7

Maintaining a balance- difference between developed and developing nations

Answer 7

Decision making results in ethical trade-offs with growth and sustainable strategies.

Developed nations previously achieved growth and prosperity from heavy resource use.

Developing nations therefore often want to take a similar approach to become developed e.g deforestation. They don’t want to be disadvantaged by sustainability related matters as they are more prominent now.

Developed nations often emit more greenhouse gases then developing nations. However, developing nations are affected more due to lack of finance and infrastructure.

Question 8

Ethical trade offs between people and the planet

Answer 8

Changing to climate friendly practices costs money which can cause financial issues such as job losses. e.g

Reduction in air travel to reduce emissions may lead to pilot job losses/ cabin crew.

Moving to electric cars may cause transition costs and automation of processes compared to petrol and diesel which causes job losses.

Question 9

What is the aim of the three pillars.

Answer 9

Balance the three pillars by taking a measured approach.

E.g using biofuels for airline

Question 10

The 5 duties of an Accountant in current times

Answer 10

Have working knowledge of sustainability issues and the rationale for regulation.

Be able to measure and report on sustainability- related impacts/costs

Understand requirements for compliance with sustainability reporting standards.

Be able to understand the different sustainability performance measures.

Be able to analyse sustainability related risks and opportunities