Ethical Challenges in Business: Shark Corporation Case Study

ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 1 Ethical Dilemmas in Business Negotiations: A Case Study of Shark Corporation Suzanne Pfau School of Business, Liberty University Author Note Suzanne Pfau I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Suzanne Pfau. Email: sbpfau@liberty.edu

ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 2 Abstract Addressing ethical challenges in business negotiations is paramount to maintaining trust and integrity. This paper examines Coleman's request to mislead regarding a building's structural integrity in Shark Corporation. It explores the ethical considerations, consequences, and professional standards pertinent to this scenario alongside broader ethical implications and guidance from the AICPA Code of Professional Conduct and biblical principles. Keywords : Ethical challenges, Misrepresentation, Professional Conduct, Biblical Principles

ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 3 Ethical Dilemmas in Business Negotiations: A Case Study of Shark Corporation Coleman's request to mislead about a building's structural integrity presents Shark Corporation representatives with a significant ethical challenge. Upholding honesty and integrity is crucial in business, as misrepresentation violates trust, which is essential for sustainable relationships. This essay explores ethical complexities, emphasizing transparency, accountability, and adherence to professional standards. Conflicting interests in negotiations often create ethical dilemmas. This scenario, where Coleman advises misrepresenting a building's stability for Shark Corporation's benefit, exemplifies such a challenge. The essay examines this scenario's ethical considerations, potential consequences, and relevant professional standards. Response to Coleman's Request Coleman's request to mislead the other party regarding the building's structural integrity presents a significant ethical challenge. As a representative of Shark Corporation, prioritizing honesty and integrity is imperative. Misrepresentation violates ethical standards and undermines trust, which is crucial for sustainable business relationships. "Misrepresentation of facts and figures by an accountant has a huge effect on the affected organisation and the economy in which the organisation exists. " (Okougbo et al., 2021, p. 259). Upholding transparency and accountability in negotiations is essential to foster long-term trust and cooperation between parties. The American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct emphasizes integrity and objectivity in professional conduct. “The development of standards in codes of ethics is the principal way through which professional organizations attempt to communicate and impose the objectives and professional obligations on their

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ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 4 members” (Fiolleau et al.,2023p. 19). Rule 102 - Integrity and Rule 201 - General Standards mandate members to act with integrity and refrain from making false or misleading statements. Rule 202 - Compliance with Standards also calls for adherence to applicable standards and regulations, including disclosing material facts. Adhering to these principles is fundamental for maintaining the trust and credibility of financial professionals in their interactions with clients and stakeholders. Dealing with the Consequences If misrepresentation has occurred, immediate action is necessary to rectify the situation ethically. Transparency and accountability are paramount. Informing the other party about the concealed issues demonstrates integrity and commitment to ethical standards, even if it jeopardizes the transaction. "Tax accountants will report and facilitate reporting tax fraud as a form of commitment to professional organizations" (Rustiarini et al.,2021p. 617) Swiftly addressing the misrepresentation minimizes potential harm and upholds the organization's reputation for honesty and reliability. Taking responsibility for errors fosters trust and lays the foundation for ethical business practices. Additional Ethical Considerations Beyond the specific instance of misrepresentation, this scenario raises broader ethical concerns. Firstly, Coleman's directive challenges the professional autonomy and integrity of the negotiator, highlighting the tension between loyalty to the employer and adherence to ethical principles. Secondly, misrepresentation could lead to legal and moral dilemmas, endangering lives and violating obligations. "Professional accountants are expected to be truthful, maintain high ethical standards in order to ensure sustained trust and confidence in the information they

ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 5 provide" (Owusu & Korankye, 2023, p. 419). Addressing these broader ethical considerations is crucial for maintaining trust and upholding ethical standards in business negotiations. AICPA Code of Professional Conduct and Biblical Principles Several provisions of the AICPA Code of Professional Conduct apply in this scenario. Rule 102 emphasizes the importance of integrity and objectivity, requiring members to be straightforward and honest in all professional and business relationships. Similarly, Rule 201 underscores the need for members to comply with relevant laws and regulations, avoiding actions that could discredit the profession—additionally, Rule 202 mandates adherence to professional standards, prohibiting members from making false or misleading statements. Biblical Perspective From a biblical perspective, Ephesians 4:25 advises, "Therefore each of you must put off falsehood and speak truthfully to your neighbor, for we are all members of one body" (Ephesians 4:25 NIV - - Bible Gateway, n.d.). This verse emphasizes the importance of honesty and truthfulness in interpersonal relationships. Similarly, Colossians 3:9 states, "Do not lie to each other, since you have taken off your old self with its practices" (Colossians 3:9 NIV - - Bible Gateway, n.d.). This verse reinforces the value of integrity and honesty in all interactions, guiding individuals to uphold ethical standards. Conclusion Navigating ethical dilemmas in negotiations requires honesty, integrity, and accountability. Prioritizing truthfulness over short-term gains is crucial for Shark Corporation, preserving trust and upholding professional standards. Aligning actions with ethical principles fosters sustainable relationships and a culture of integrity. Swift action to rectify misrepresentation, transparency, and accountability are vital for preserving the organization's

ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 6 reputation. Broader ethical considerations, including professional autonomy and potential legal consequences, underscore the importance of ethical decision-making. Adhering to professional standards and biblical principles enables negotiators to foster trust and ethical conduct in business negotiations.

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ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 7 References Colossians 3:9 NIV - - Bible Gateway. (n.d.). Www.biblegateway.com. Retrieved February 13, 2024, from https://www.biblegateway.com/passage/? search=Colossians+3%3A9+&version=NIV Ephesians 4:25 NIV - - Bible Gateway. (n.d.). Www.biblegateway.com. https://www.biblegateway.com/passage/?search=Ephesians+4%3A25+&version=NIV Fiolleau, K., Nappert, P. L., & Thorne, L. (2023). The professional responsibility of accountants as re-defined by the inclusion of the NOCLAR standard in the Code of Ethics. In Research Handbook on Accounting and Ethics (pp. 19-34). Edward Elgar Publishing. Okougbo, P. O., Okike, E. N., & Alao, A. (2021). Accounting ethics education and the ethical awareness of undergraduates: an experimental study. Accounting Education, 30(3), 258- 276. Owusu, G. M. Y., & Korankye, G. (2023). The state of ethical decision‐making research in accounting: A retrospective assessment from 1987 to 2022. Business Ethics, the Environment & Responsibility, 32(2), 419-434. Rustiarini, N. W., Yuesti, A., & Gama, A. W. S. (2021). Public accounting profession and fraud detection responsibility. Journal of Financial Crime, 28(2), 613-627.

ETHICAL DILEMMAS: SPARK CORPORATION CASE STUDY 8 Feb 22 at 8:03pm Suzanne, good work on this DB assignment, but the rule on confidentiality limits disclosure of client information without the consent of the client. Examples of confidential information are provided below. Please let me know if you have questions. 1.700 Confidential Information 1.700.001 Confidential Client Information Rule .01 A member in public practice shall not disclose any confidential client information without the specific consent of the client. .09 Confidential client information. Any information obtained from the client that is not available to the public. Information that is available to the public includes, but is not limited to, information a. in a book, periodical, newspaper, or similar publication; b. in a client document that has been released by the client to the public or that has otherwise become a matter of public knowledge; c. on publicly accessible websites, databases, online discussion forums, or other electronic media by which members of the public can access the information; d. released or disclosed by the client or other third parties in media interviews, speeches, testimony in a public forum, presentations made at seminars or trade association meetings, panel discussions, earnings press release calls, investor calls, analyst sessions, investor conference presentations, or a similar public forum; e. maintained by, or filed with, regulatory or governmental bodies that is available to the public; or f. obtained from other public sources. Unless the particular client information is available to the public, such information should be considered confidential client information. Members are advised that federal, state, or local statutes, rules, or regulations concerning confidentiality of client information may be more restrictive than the requirements in the code. [Prior reference: paragraph .05 of ET section 92] - Janet Forney

Pfau, Suzanne-DB3-ACCT 612

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