Task Team of FUNDAMENTAL ACCOUNTING School of Business Sun Yat-sen University Summary of This Lesson Ethical issues have become an unprecedented topic of business community today 2. The most pressing leadership issue for today is how to ensure that corporate officers behave in an ethical manner 3. Professional and accounting ethics can direct business people to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services Case for Open Discussion HOW DO YOU MEASURE SUCCESS a popular story recounts a meeting that took place at the Edgewater Beach Hotel in Chicago in 1923. Attending this meeting were nine of the richest men in the world at that time: (1) Charles Schwab, President of the world's largest independent steel company; (2) Samuel Insull, President of the worlds largest utility company;(3)Howard Hopson, President of the largest gas firm; (4) Arthur Cutten, the greatest wheat speculator; (5) Richard Whitney, President of the New York Stock Exchange;(6)Albert Fall, member of the President's Cabinet; (7) Leon Frazier, President of the Bank of International Settlements; ( 8)Jessie Livermore, the greatest speculator in the Stock Market; and(9)Ivar Kreuger, head of the company with the most widely distributed securities in the world Twenty-five years later,(1)Charles Schwab had died in bankruptcy, having lived or borrowed money for five years before his death. (2) Samuel Insull had died virtually penniless after spending some time as a fugitive from justice. (3)Howard Hopson was insane.(4) Arthur Cutten died overseas, broke. (5) Richard Whitney had spent time in Sing-Sing(6)Albert Fall was released from prison so he could die at home. (7)Leon Fraizer, ( 8)Jessie Livermore, and(9)Ivar Kreuger each died by suicide. Measured by wealth and power these men achieved success, at least temporarily. Making a lot of money may be an acceptable goal, but money most assuredly does not guarantee a truly successful life Many people think of fame and fortune when they measure success. However, at some point in life, most people come to realize that inner peace and soul-deep satisfaction come not from fame and fortune, but having lived a life based on integrity and noble character. President Lincoln put it this way: "Honor is better than honors. At a Congressional Hearing on ethics in July 2002 Truett Cathy, founder of Chik-Fil-A, quoted Proverbs 22: 1: "A good name is more desirable than great riches; to be esteemed is better than silver or gold. "In the final analysis, living an honorable life really is more satisfying than fame and fortune. How do you measure success? 1)What ethic lessons can you infer from this case story? 2)How can an accountant give a well-balanced treatment to the ethic issues in his or her 3)What is the relationship(s) between the ethic quality and the professional ability and the actual performances of an accountant?Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Summary of This Lesson 1. Ethical issues have become an unprecedented topic of business community today. 2. The most pressing leadership issue for today is how to ensure that corporate officers behave in an ethical manner. 3. Professional and accounting ethics can direct business people to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services. Case for Open Discussion HOW DO YOU MEASURE SUCCESS? A popular story recounts a meeting that took place at the Edgewater Beach Hotel in Chicago in 1923. Attending this meeting were nine of the richest men in the world at that time: (1) Charles Schwab, President of the world's largest independent steel company; (2) Samuel Insull, President of the world's largest utility company; (3) Howard Hopson, President of the largest gas firm; (4) Arthur Cutten, the greatest wheat speculator; (5) Richard Whitney, President of the New York Stock Exchange; (6) Albert Fall, member of the President's Cabinet; (7) Leon Frazier, President of the Bank of International Settlements; (8) Jessie Livermore, the greatest speculator in the Stock Market; and (9) Ivar Kreuger, head of the company with the most widely distributed securities in the world. Twenty-five years later, (1) Charles Schwab had died in bankruptcy, having lived on borrowed money for five years before his death. (2) Samuel Insull had died virtually penniless after spending some time as a fugitive from justice. (3) Howard Hopson was insane. (4) Arthur Cutten died overseas, broke. (5) Richard Whitney had spent time in Sing-Sing. (6) Albert Fall was released from prison so he could die at home. (7) Leon Fraizer, (8) Jessie Livermore, and (9) Ivar Kreuger each died by suicide. Measured by wealth and power these men achieved success, at least temporarily. Making a lot of money may be an acceptable goal, but money most assuredly does not guarantee a truly successful life. Many people think of fame and fortune when they measure success. However, at some point in life, most people come to realize that inner peace and soul-deep satisfaction come not from fame and fortune, but having lived a life based on integrity and noble character. President Lincoln put it this way: “Honor is better than honors.” At a Congressional Hearing on ethics in July 2002, Truett Cathy, founder of Chik-Fil-A, quoted Proverbs 22:1: "A good name is more desirable than great riches; to be esteemed is better than silver or gold." In the final analysis, living an honorable life really is more satisfying than fame and fortune. How do you measure success? Suggested questions: 1) What ethic lessons can you infer from this case story? 2) How can an accountant give a well-balanced treatment to the ethic issues in his or her professional practices? 3) What is the relationship(s) between the ethic quality and the professional ability and the actual performances of an accountant?