Final answer:
Using a principles-based system allows for flexibility, critical thinking, and context-specific decision-making in ethics. In the case of the ICAEW Code of Ethics, it helps professionals consider the principles of integrity, objectivity, competence, confidentiality, and behavior in their decision-making.
Step-by-step explanation:
When it comes to ethical codes, such as the ICAEW Code of Ethics, there are two approaches that can be taken: using a principles-based system or a set of rules. The advantages of using a principles-based system are that it offers flexibility and allows for more context-specific decision-making. It also promotes critical thinking and ethical reasoning, as it requires individuals to evaluate situations based on underlying principles rather than blindly following rules.
For example, in the case of the ICAEW Code of Ethics, a principles-based approach allows professionals to consider the overarching principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behavior when making ethical decisions. This enables them to consider the nuances of each situation and apply these principles in a way that best serves the ethical obligations of their profession.