ITC JUNE 2022 SUGGESTED SOLUTION PAPER 4 PART I SAICA

Part (c) Discuss, with regard to Imfundo’s decision to pursue the development of the computer-based learning course for the Law Society: (i) Two ethical concerns and two business risks; and 

Answer

Ethical Concerns

1. Plagiarism: The plan to copy course material and add Imfundo's logo is plagiarism. This is a dishonest and unethical act, as it involves taking another party's work without permission.

2. Lack of Professional Integrity: The CFO's directive to "make this happen by any means necessary" encourages unethical behavior, which compromises her professional integrity and could bring the CA(SA) profession into disrepute. It's also dishonest toward the Law Society.

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Business Risks

1. Legal Action: Using copyrighted material without permission is illegal. Imfundo could face costly lawsuits for copyright infringement from the original content provider and even the Law Society, which would severely worsen its financial position.

2. Reputational Damage: Getting caught would cause significant reputational damage. This would lead to a loss of trust from clients and stakeholders, negatively impacting the brand and future profits.