CIMA P1 Syllabus B. Budgeting - Ethical Implications Of Budgeting - Notes ^{7 / 7}

Ethical Implications Of Budgeting

1. Competitive Market

   • Pressure to be profitable leading to using unsustainable inputs;  not paying a fair price to suppliers

   • Employees suffer only receiving the minimum wage; no training or development opportunities

2. Government Agency

   • Budgets set for political gain

   • Decisions based on cost rather than effectiveness. eg. Cheaper, lower quality, drugs may be preferred by the public sector

3. Subsidiary

   • Internal politics may mean budgets for some subsidiaries are more challenging than others.

   • Tax rates may make it more desirable to make profits in certain subsidiaries