General title

Ethics & Ethical Dilemmas

Evelyn A. Brown, CGFM — RetiredAGA 2011-2012 National President-Elect

Official Definition of Ethics

From the Greek word Ethikos (theory of living), translated as ethos.

Principles or standards of human conduct, sometimes called morals.

Principles of conduct: Happiness or pleasure; Duty, virtue, or obligation; and Perfection, the fullest harmonious development

of human potential.

Webster’s dictionary: Discipline dealing with what is good and bad, with moral duty and obligation.

History of Ethics

Ancient civilizations — Religion played a role in the behavior of groups and the individual.

China — The maxims of Confucius were accepted as a moral code. Egyptians, Sumerians, etc., had maxims and precepts handed down by secular leaders.

In the 5th Century BC, Greek philosophers known as Sophists, who taught rhetoric, logic, and civil affairs, were skeptical of moral absolutes. To the Sophists, human judgment is valid only for oneself.

The late 1980s saw ethics elevated; politicians’ behavior questioned, and the ethical failures of Enron, WorldCom, etc.

By the late 1990s and early 2000s, it was time to re-evaluate the role of ethics.

Morals v. Honesty v. Ethics

Morals imply conformity to established sanctioned codes of accepted notions of right or wrongdoing.

Honesty – what’s really happening in a particular situation.

Truthfulness is evidence of honesty, but the truth can differ from person to person.

What does truthfulness depend upon? Your vantage point.

Ethics suggests involvement of more difficult or subtle questions of rightness, fairness or equity.

More on the Terminology

Ethics can be taught. Honesty is core behavior

Is there a difference between the truth, the whole truth and nothing but the truth? Truth is relative.

Ethics – is about morals, values, honesty, fairness, rules and regulations as, well as organizational policy.

Who controls your personal ethics?

Observation of unethical behavior in the workplace. What can you do and what should you do?

Present day ethical standards – customs or unwritten practices Golden Rule – as written in bible but

may be ignored. Do you think that ethics mirror a

society’s moral beliefs?

Establishing Professional Ethics

Professional groups – why do groups such as AGA, AMA, and ABA establish specific ethical standards?

AGA Ethics Handbook – framework

What is the importance of ethics to you? AGA Ethics Board, CGFM Exam 1,

Governmental Environment, is extensively devoted to ethics.

Pendulum swing - full integration in teaching and examinations (AICPA and State societies changed)

Principles of Professional Ethics

Impartiality/objectivity

Openness/full disclosure

Confidentiality

Due diligence/duty of care

Fidelity to professional responsibilities Avoiding potential or apparent conflict of

interest

Professional Ethics Questions

Is there an ethics issue if you have corporate stock in the same firm while being a decision maker in your organization?

Forensic accounting and auditing – emphasis on ethics is paramount. Why?

Professional judgment, personal values and ethics.

Is there a book or treatise with all of the answers on ethical dilemmas you will face?

Who do you consult when faced with ethical dilemmas?

AGA colleagues

Office of Inspector General (OIG) or Ethics officer

Office of Government Ethics (OGE)

US Government Accountability Office (GAO)

Impartiality – major asset

Why a Code of Ethics?

Code of Ethics and professional standards are the hallmarks of the profession.

Accounting, auditing, medical profession, architectural profession, etc. – look at cost of liability insurance.

Question – are there any lawyers in the room?

Why important – Government of Laws. (some say ethics is “squishy”).

Ethical Dilemmas

Do you sometimes overlook transgressions, bending the rule to help a colleague, overlooking information that may be damaging?

Too busy – not focused sometimes Back to basics – Ethics is about

Relationships, Well-informed conscience, Being true to the idea of who we are

and what we stand for, and Having the courage to explore difficult

questions and accepting the costs (accountability and responsibility)

Things to Remember about Ethics

Ethics is about how we lead and live our lives personally and professionally.

You will not get all the answers that you need in any book as you traverse your professional journey.

Watch your habits, they become your character

Watch it because your character becomes your destiny

Reputation is who they think you are. Character is who you really are.

Further Thoughts on Ethics

Advice: If you are new to an organization what is the first thing you should do?

Questions to ask yourself: Why should anyone want to lead you? And why should anyone want to be led by you?

Remember the 5 E’s — Economy, efficiency, effectiveness, ethics and equity

Can you direct the wind?

Ethical Problems in Real Life

Auditing – grants – unauthorized expenditures

Agency – augmentation of appropriations

Acceptance of gifts

Misuse of government property Hatch Act – prohibition of federal employees from

engaging in partisan political activity at any level of government (this applies to State and Local offices too).

Privacy Act - Unauthorized disclosure of information related to your work that has not been cleared through the chain of command

Post Employment Violations: Please check with OGE or your agency’s ethics office.

Final Thoughts

The quality, not the longevity, of one’s life is what is important.

A genuine leader is not a searcher for consensus but a molder of consensus. — Dr. Martin Luther King, Jr.

A man can’t ride your back unless it’s bent.

We may all have come on different ships but we’re in the same boat now.

Public service is a Public Trust. You want people in public who are not only capable, but who have a well-developed sense of right and wrong. You want people with energy and empathy for others, and you want people who are more concerned about the public good than personal gain. — David M. Walker, Comptroller General of the United States,

April 3, 2005

General paragraph

AGA is the Thought Leader in Advancing

Government Accountability and

Transparency

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