Chapter 19, Problem 19.1RQ

To determine

Concept Introduction:

Codes of professional conducts include a list of principles and regulations which define the set of standards of ethic and professional behavior that require for each members of the entity. It gives the general outline for the institute and its members, how they should behave and perform.

To describe: Three theories of ethical behavior that can be used to analyze the ethical issues in accounting

Explanation of Solution

The ethical behavior includes the general outline for the institute and its members, that how they should behave and perform. The theories of ethical behavior are described below:

Utilitarianism: Utilitarianism is an ethical theory that determines the rights things from the wrong one, and indicates that the most ethical decision is one which produces the greatest happiness. In accounting, utilitarianism theory helps to determine both the right and wrong side of a particular action, and focus on the result of the action.

Right-based approach: A right-based approach include that individual should aware of their rights and, he should participate in the government and development policies. It helps them to live their life as they want to live and can claim for their right when needed. So if any decision-maker accepts the theory of right then, he should give respect to each individual’s right.

Justice-based approach: The justice-based approach includes the justices for each individual and makes them confident that everyone can use and better achieve their goals. This approach is used for the better development for the society. This approach assumes that each individual has needs equality while decisions made for them.