Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT one of the ethical stances proposed by Johnston and Scholes?

1. Multiple stakeholder obligations

2. Community development focus

3. Short-term shareholder interest

4. Long-term shareholder interest

The correct answer is: Community development focus

The correct answer is identified as the community development focus. This option stands out because Johnston and Scholes' discussion on ethical stances primarily revolves around concepts that deal directly with the interests of shareholders and stakeholders in a corporate setting. The ethical stances they propose include multiple stakeholder obligations, which emphasize the company's responsibility to various stakeholders beyond just shareholders, such as employees, customers, suppliers, and the community. Both short-term and long-term shareholder interests reflect a company's duty to act in the best interests of its shareholders, indicating a differing time horizon for corporate profitability. In contrast, the community development focus, while an essential concept in corporate social responsibility, does not fit as precisely within the framework of the ethical stances suggested by Johnston and Scholes. This stance implies a broader societal impact that may extend beyond the direct financial interests of the stakeholders considered in the other ethical positions. Therefore, it is not categorized alongside their primary ethical considerations.