Lakhasly

RESOLUTION OF ETHICAL CONFLICT

An ethical issue occurs when someone at work place take some action or decision which may seems illegal to the third party or the sub ordinates working in that particular workplace. Ethical conflict may not necessarily be illegal according to the law books but the actions or decision took by some executive may violates the norms or already established rituals of an organization.
The best way to solve the ethical conflict in an organization is to prevent it in the first place. The conflicts or ethical issue do not have any solution in the law books or procedure so to have the safeguards and proper measures to define which action is acceptable in their respective organization it is essential for every well-built workplace to have defined set of respective code of conduct. However, the set of rules that might be useful in every organization of resolve the ethical issue is defined below:
Identification of the ethical issue
The first step in resolving the problem which largely contributes in controlling the accounting frauds, is to point out the problem and identify it in scientific manner. This step may include into consideration interest of all the employees and stakeholders. Mostly, ethical conflict may arise due to the clash between stakeholder interest. Another primary reason of occurrence of ethical issue is that when executive may took some action or accept a proposal which is legal in its true sense but may have some clash with the company’s code of conduct or values. Identification of the core ethical problem arising may also highlights the fraudulent activities which were about to take place or has had already happened in organization. The best way of finding out the ethical issue is individual accountability which is based on mere perception of evaluating thee individual behaviors and activities in a business organization. Doing so may also work as a check and balance force.
To identify the alternative course of action
The next step in the row after identification of the ethical issue is to plan a proper and systematic alternative course of action of those decision in which the problem is occurring. This step must evaluate how the alternative course of action is going to affect each stakeholder in the company or organization. So, if a person or a group of executives have any intentions of committing a fraud in his best favor over collective interest then he will always lay out a proper plan, changing the course of action will decrease the probability of fraudulent activities. The second point of due diligence is that the company or organization suggesting the alterative course of action along with the stake holders must not let any harms or loss occur to the parties involved in the contract or decision. The alternative plan must consider and compensate all the rights and obligations which were decided in the original course of action. The losses and profits that might occur due to the alternative course of action must not have large differences with the original one.
Help to resolve the dilemma
After completion of first two step the third step in resolving the ethical conflict is to seek help from within and even outside the organization, if necessary The role of mediator is very helpful and is the need of every negotiation occurring in all the level. However, in an organization the job to be done is on the supervisor and advisor of the company. Sometimes the accounting frauds are attempted by the high professional accountant because they are so sure that with their expertise and grip on the subject no one in the company can catch them. Seeking help from experts outside an organization may help to reduce the ratio of accounting frauds and counter the culprit inside the home.
Final Course of action
The last step is to have proper executive and final draft of the plan which eliminates the conflict which was occurring in the original decision. The final draft must not include an ethical issue and it should be most closest appropriate action. Resolving the ethical issue is complex and undefined method but doing so can also minimize or reduce the risk of fraudulent activities occurring in an organization.