ICAEW SE · Chapter 6 · Question 9 of 10
When a professional accountant is making an ethical decision, why is it important to identify the stakeholders affected?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Because an ethical decision should consider how the outcome affects each affected party's interests, not just the interests of the decision-maker or their employer
Explanation
Ethical decision-making involves identifying who will be affected and weighing their interests, including the public interest. This helps the accountant see the full consequences of options and avoid decisions that serve only narrow interests. Stakeholder analysis supports, but does not replace, the fundamental principles in the Code.
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