The Standards of Ethical Conduct for Management Accountants (Statement 1C) promulgated by the National Association of Accountants on June 1, 1983, are described and critiqued in this article. Four major issues related to the issuance of the standards are discussed: (1) What are the basic requirements of any ethical system? Does Statement IC meet these requirements? (2) Should a professional be ethical? (3) If ethical behavior is desirable for management accountants, should such standards be formally expressed in writing? (4) If the standards are expressed in writing, what format should be adopted for the content and how should the standards be expressed?
On June 1, 1983, the National Association of Accountants promulgated standards of ethical conduct for management accountants. The National Association of Accountants is an organization of accountants concerned primarily with management accounting problems and practices. Membership in the association consists primarily of accountants employed in industrial and commercial companies as distinguished from public accountants who offer their services to the public. The American Institute of Certified Public Accountants is the principal association for public accountants. The Institute has its own standards of ethical conduct for its membership.