Part (i): Ethical Principles Potentially Breached

The IFAC Code of Ethics identifies several fundamental ethical principles that professionals are required to uphold. In this case, three possible ethical principles might have been breached:

1. Integrity:
   • Linda might have compromised her integrity by not fully disclosing her limitations to her employer, especially regarding her ability to meet work commitments while caring for her sick mother. It is important for professionals to be honest and straightforward in their professional and personal dealings.
2. Professional Competence and Due Care:
   • Although Linda is acknowledged to be competent at her job, her ability to deliver due care and commitment to the role is being impacted by her frequent absences and early departures. This situation might lead to a breach of the principle that requires professionals to maintain the knowledge and skills to ensure that clients or employers receive competent professional service.
3. Objectivity:
   • The manager’s approach to addressing Linda’s situation could potentially breach objectivity. The discussion with the audit team about Linda’s personal challenges might have resulted in biased treatment of Linda by her colleagues. The principle of objectivity requires that personal bias should not affect professional judgment or actions.
4. Confidentiality (Additional point):
   • The manager’s discussion of Linda’s personal situation with the audit team might have breached confidentiality. Personal information about employees should not be disclosed without consent unless required by law or professional duty.

Part (ii): Recommended Actions for the Manager

The manager should follow the guidelines of the IFAC Code of Ethics to resolve the ethical dilemma while protecting Linda’s professional standing and ensuring the audit team’s productivity is not compromised:

1. Open Communication with Linda:
   • The manager should have a direct and confidential discussion with Linda to fully understand her situation and determine if adjustments can be made to her work schedule, such as offering flexible hours, remote work options, or reducing her workload temporarily.
2. Confidentiality:
   • The manager must maintain strict confidentiality about Linda’s personal matters and remind the audit team that her circumstances should not be disclosed or discussed inappropriately.
3. Address Colleagues’ Behavior:
   • The manager should address the undermining behavior of Linda’s colleagues. A meeting with the audit team should emphasize professionalism, respect, and collaboration, and ensure that personal circumstances do not lead to any harassment or inappropriate treatment.
4. Workplace Adjustments:
   • Where possible, the manager should consider offering workplace adjustments to Linda, such as flexible hours or task reassignments, to help balance her responsibilities at home and work.
5. Performance Management:
   • The manager should monitor both Linda’s performance and the team’s output to ensure that business needs are met. If Linda’s situation continues to affect her performance significantly, a long-term solution may need to be considered, including potential leave options or reassigning Linda to a less demanding role.
6. Document All Steps:
   • The manager should document all actions taken to resolve this ethical dilemma, including meetings with Linda and any decisions made, in case there is a need to justify these actions in the future.