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The Case of Armidale Hardware and Accounting Ethics

1. Introduction:

In this essay, I will discuss the case of Armidale Hardware and Accounting Ethics. In particular, I will focus on John, who is an accountant at Armidale Hardware. I will argue that John has a conflict of interest and that he should not be associated with the report in question.

2. Armidale Hardware: The Business and John:

Armidale Hardware is a small business that has been struggling to stay afloat. The owners, Mary and Peter, have been trying to get a loan from the bank in order to keep the business going. However, they have been unsuccessful so far.

John is an accountant who works for Armidale Hardware. He is a good friend of Mary and Peter, and he wants to help them out. Therefore, when they ask him to prepare a financial statement that will “impress” the bank’s personnel, he agrees to do it.

3. Ethical Standards in Business:

There are certain ethical standards that businesses are expected to follow. One of these standards is honesty. This means that businesses should be honest in their dealings with customers, employees, and other stakeholders. another ethical standard is fairness. This means that businesses should treat all stakeholders fairly and without discrimination.

4. Law and Ethics: A Conflict of Interest:

As mentioned above, there are certain ethical standards that businesses are expected to follow. However, there are also laws that businesses must obey. Sometimes, these laws conflict with the ethical standards. For example, consider the case of price gouging. Price gouging is when businesses charge excessively high prices for goods or services during times of crisis, such as natural disasters. Although price gouging is unethical, it is not illegal in most cases. This means that businesses can choose to either follow the law or the ethical standard, but not both.

5. Public Humiliation and the Principle of Beneficence:

Another ethical principle is beneficence, which means that people should help others if they can do so without causing harm to themselves (Wikipedia, 2019). This principle often comes into conflict with the principle of autonomy, which gives people the right to make their own decisions (Wikipedia, 2019). For example, consider the case of a person who is being publicly humiliated by someone else. The person being humiliated may want to stop the humiliation, but doing so would require them to publicly humiliated themselves. In this case, beneficence would dictate that the person stop the humiliation, even though doing so would cause them harm. However, autonomy would dictate that the person has the right to make their own decision about whether or not to stop the humiliation.

6. Conclusion:

In conclusion, John has a conflict of interest and he should not be associated with the report in question. This is because he is not being honest about the financial situation of Armidale Hardware, and he is not following the ethical standards that businesses are expected to follow. Additionally, the principle of beneficence dictates that he should not help Mary and Peter with the report, as doing so would cause him harm.

FAQ

Armidale Hardware stored its accounting records on a computer system.

The ethical considerations in terms of the accuracy of the records were that the company needed to ensure that the records were accurate in order to comply with regulations and to avoid any potential legal implications.

It was important for Armidale Hardware to maintain accurate records in order to provide transparency and accountability, as well as to enable the company to make sound financial decisions.

If the company failed to maintain accurate records, it could face severe penalties from regulators, including fines and suspension of operations. Additionally, inaccurate record keeping could lead to public mistrust and loss of business.

Different stakeholders would view the importance of accurate record keeping differently depending on their relationship with the company. For example, shareholders would be concerned with ensuring that the company is financially stable, while employees would be more concerned with ensuring that their jobs are not at risk due to inaccurate record keeping.

The implications of inaccurate record keeping for businesses and society as a whole can be significant. Inaccurate record keeping can lead to financial losses for businesses, and can also erode public trust in institutions

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