CIMA BA4 · Chapter 1 · Question 4 of 10
An accountant believes that following clear, detailed rules is the best way to ensure ethical conduct, because it leaves no room for personal judgement. What is the main weakness of relying only on a rules-based approach to ethics?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rules cannot anticipate every situation, so people may comply with the letter of a rule while defeating its purpose
Explanation
A rules-based system cannot foresee every circumstance and encourages a 'tick-box' mentality in which people look for loopholes. A principles-based approach, such as the conceptual framework in the CIMA Code of Ethics, requires members to apply fundamental principles to any situation. Rules are enforceable and easy to communicate, and it is principles, not rules, that require more judgement.
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