VGFOA SPRING CONFERENCE

A High School Student’s Guide to

Business Ethics

Presented by:

John Montoro, CPA, CGMA

Junior Achievement of Central Virginia

Business Ethics Day

Business

professionals visit

High School

classrooms to talk

about Ethics

Over 100

classrooms over

two days in October

last year

Junior Achievement of Central Virginia

Business Ethics Day

- Core principle of our

profession is ethical behavior

- What happens when things

go wrong

- Ethics should be simple – do

the right thing

- When did you first start

making ethical decisions?

- - Why is the right thing so

difficult sometimes?

Copyright © 2012 American Institute of CPAs

CORE VALUES

Integrity

Competence

Lifelong learning

Objectivity

Commitment to

excellence

Relevance in global

marketplace

What happens when

someone turns to the

“dark” side?

LOSS OF CREDIBILITY

“King Klein”

School Finance Director

South Carolina

Stole from capital projects

funds

Stole from school activity

funds

Funded a lavish lifestyle

Fully funded his retirement

plan after being caught

Rita Crundwell,

Finance Director, City of Dixon, Illinois

THE DARK SIDE

City of Dixon Illinois Embezzlement

ENRON

At what age do you start making

ethical decisions?

When do you have to make

ethical decisions?

WHY IS DOING THE RIGHT THING

SO DIFFICULT?

Lance

Armstrong

Peer Pressure

Rationalization – everyone is doing it

Frank Abagnale

Catch me if you can!

Why is doing the right thing

so difficult?

No one will get hurt

Cynthia Cooper

WorldCom

Whistle-blower

WHY IS DOING THE RIGHT THING SO DIFFICULT?

It may hurt others

It may hurt you

IS IT EASIER TO DO THE RIGHT THING

WHEN SOMEONE IS WATCHING?

IT DEPENDS!

The $20 bill Tip sharing

What if doing the right thing isn’t cool?

Will the work environment influence an

employee’s decision to do the right thing?

DO YOU ALWAYS KNOW THE

RIGHT THING TO DO?

HOW DO YOU ESTABLISH A GOOD ETHICAL

WORK ENVIRONMENT?

• When you own your own company, or manage a

department, or teach a class- If you are going to

talk the talk, you had better walk the walk.

Otherwise just shut up.

• Establish expectations from the beginning

• If you have a policy you need to enforce it – there

must be consequences.

HOW DO YOU MAKE AN ETHICAL DECISION?

• Take a step back and ask whether this is an ethical

question or not

• Consult guidelines that might influence your decision

• Consider personal factors – am I being objective? Can I be

objective?

• Consult someone you trust. Parents, teachers, trusted

friend or co-worker

HOW DO YOU MAKE AN ETHICAL DECISION?

• Make a list of possible actions to take. Think through the

consequences

• Make a decision that is most ethically appropriate

• Implement the decision

Copyright © 2012 American Institute of CPAs

CORE VALUES

Integrity

Competence

Lifelong learning

Objectivity

Commitment to

excellence

Relevance in global

marketplace

SUMMARY

• There is a personal cost or benefit to doing the right thing.

• When considering the cost, there is one person you have to

live with your entire life, someone who will always stare

back at you when you look in the mirror.

• Whether you like it or not, your self-worth – how you feel

about yourself – is based on your actions and decisions

you make.

• Moral bank account. Do something right – you make a

deposit. Do something you know is wrong – you make a

withdrawal. The balance in the account affects how you

feel about yourself.

Copyright © 2012 American Institute of CPAs

IN SUMMARY

Ethical decisions are good for your health!

THANK YOU FOR YOUR ATTENTION

TODAY CONTACT INFORMATION:

JMONTORO@RTA-SOLUT IONS.COM