Accounting Ethics In Accounting

1391 Words3 Pages
bulb-icon

Recommended: Ethical issues in accounting

A major question for business historically has been whether corporate decision makers should be concerned with issues other than profitability. The statement ethics and profit do not go hand in hand is an ancient and traditional theory as is in the modern world business people are introducing new advertising and sales techniques that drive a business into success as well as putting into account people’s rights and obligations. This is so as to achieve the long term benefit and stay in the market for a much longer period of time. This essay explains how the firm uses ethics to consider the customers and employees before profits and how to deal so as to survive unfair profit oriented competitors it also explains how firms use practices like competence,social responsibility and disclosure of interest.
Ethics are the values of a person’s sense of feeling of what is good or bad or what the law requires them to do Profit is the main backbone of a business .If it does not make profits it will fail and not survive. Ethics and profits are mutual for success. Ethics therefore plays an essential role in customer relationship management (Gundlach & Murphy, 1993; Ruiz, 2005).
As with other professional disciplines, understanding and upholding ethics is very important in the accounting field. Small-business investors and leaders consistently rely on the ethical collection and delivery of financial information, and are sometimes placed at risk if accounting ethics are not preserved. For a small-business owner, investor or manager, learning the basics of accounting ethics and their function is a good way to avoid legal and financial trouble. The professional accounting organizations establish codes of ethics and integrity standards that their me...

... middle of paper ...

... shows that customers are more willing to demonstrate loyalty to firms that also show social and environmental responsibility. Firms that fail to provide ethical responsibilities will lose their customer base and face rising market costs. Of late boards have even been set up to ensure that those acting against set standards shall be charged accordingly The policy of putting people before profits must be enforced to face a healthy business environment in the long run.

REFERENCES:

Keen,B.(2002) Ethical accounting principles:Ethicsin accounting and financial Decsion making.

Ruiz.(2005)Determinants and consequences of ethical behavior.

Read more:http://www.ukessays.com/essays/management/organisational-factors-that-impact-on-people-performance-management-essay.php#ixzz2wpCLt5u9
Read more: http://www.ukessays.com/essays/finance/ethics-and-profits.php#ixzz2wp4s3Dts

Show More
Related

  • Exploring Ethical Dilemmas in Business Decisions

    719 Words  | 2 Pages

    Of the many possible ethical dilemmas that people could face in the business world, the article: “The ‘Do Whatever It Takes’ Attitude Gone Wrong” portrays particular ethical situations in todays business world that are very common: poor social responsibility and its negative effects. Social responsibility is considering what affects business decisions and products have on society. The article reveals what goes on behind the scenes at a business in terms of poor ethical decision making and how often it occurs. It mainly focuses on how business decisions are made without consideration

    Read More

  • Why Are Ethics Important In The Accounting Profession

    1384 Words  | 3 Pages

    What does ethics have to do with accounting? Everything, since there have been some recent financial accounting scandals; a few examples being Xerox, WorldCom, Enron, which have generated much unwanted and unfavorable publicity for CPA's, including those working as controllers or chief financial officers for organizations.

    Read More

  • Ethical Code Essay

    1478 Words  | 3 Pages

    Ethics or rather morals entail mechanisms that defend, systematize as well as recommend conceptions of right or wrong. Many organizations develop ethical codes to ensure employees and employers understand the difference in doing good or bad. In that respect, ethics are an essential aspect of successfully running of any organization or government. Ethics ensure employee’s productivity levels are up to the required standards. It also assists them to know their rights and responsibilities. Additionally, employers, as well as any persons in management, are guided by them to ensure they provide transparent leadership. Ethics also defines how customers should be handled. Ethical codes govern the relationship between customers and an

    Read More

  • Ethical Ethics In Accounting

    1216 Words  | 3 Pages

    Ethic is defined as a set of moral principles or values, a theory of system of moral values, the principles of conduct governing an individual or a group. In all its form, ethics deals with what is good and bad, and with moral duty and obligation. Hence, ethics is either a set of principles held by an individual or group, or the discipline that studies the set of principles (Duska, Duska, & Ragatz, 2011). Ethical theories provide principles that can be useful when solving dilemmas whereas business ethics refers to the ethical values that determine the interaction between a company and its stakeholders. The three major approaches in normative ethics identified are virtue ethics, deontological and utilitarianism (Kraut, 2012), but in this paper the focus is on the two major one proposed for the accounting profession – deontology and utilitarianism.

    Read More

  • Ethical Considerations in Global Expansion

    1863 Words  | 4 Pages

    Establishing and implementing a strategic approach to improving organizational ethics is based on establishing, communicating, and monitoring ethical values and legal requirements that characterize the firm's history, culture, and operating environment” (p. 129). Ethics programs ensure satisfactory relationships with all stakeholders by aligning with all of their demands and needs, and determine conduct with customers and relationships with regulators, shareholders, suppliers, and employees (Ferrell, 2004). Values are a core set of beliefs and principles, one or many. A number of factors contribute to the development of values. These include membership in a community or culture, attitudes, beliefs, and behaviors.

    Read More

  • APES110 Code Of Accounting Ethics Essay

    1795 Words  | 4 Pages

    Cardinal virtues and ethics have long standing relationship with each other. They are “Two sides of a coin” and highly dependent on each other for the purposes of effective corporate governance. Accounting ethics is no exception to the cardinal virtues and they are embedded in APES 110, code designed for the accountants and includes guidelines for members in the public practice as well as for members in business. This assignment analyses the application of cardinal virtues in alignment with fundamental principles of APES110 Code of Accounting ethics with relevant examples and discusses the specific sections where cardinal virtues are applied in relation to the examples. Virtues are those character traits that dispose a person to act ethically

    Read More

  • Utilitarianism, Kant's Deontological Ethics, And Virtue Ethics

    1027 Words  | 3 Pages

    Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.

    Read More

  • Managerial Ethics

    1607 Words  | 4 Pages

    In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.

    Read More

  • Importance Of Ethics In Accounting

    1556 Words  | 4 Pages

    This essay will talk about the ethical standards and code of conduct in the accounting profession, in particular for CPA Australia, the importance of ethical education for accounting students, the importance for ethical financial reporting and also addresses ways to deal with conflicts that arise from ethical issues in the

    Read More

  • Case Study Of Coca Cola Code Of Ethics

    711 Words  | 2 Pages

    The aim of this paper is to provide the framework of the current professional accounting code of ethics. What are the ethics and how we define them? In this report we try to determine the main ethical principles that will establish the right and

    Read More

  • Toyota's Ethical Issues

    1423 Words  | 3 Pages

    Treviño, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right Fourth ed., Retrieved on July 30, 2010 from www.ecampus.phoenix.edu

    Read More

  • Business Ethics and Social Responsibility

    1807 Words  | 4 Pages

    Ethics is the application of one’s personal beliefs and the impact on how a person makes decisions regarding the relationships involving a company. The most common agents that involve a person’s decisions are owners, employees, customers, clients, suppliers and communities, according to Robert Audi (Audi, 2009). A person’s beliefs are often the determining factor in whether an action is considered right or wrong. Although ethics are often not explicitly displayed, a person with any sort of moral belief tends to have a grasp about what is considered ethically right or wrong. These obligations attempt to create a mirror image of how one would expect to be treated themselves. Audi states that there are ten moral obligations that serve as a model for how to assess ethical dilemmas. The following obligations are moral obligations that help to assess ethical dilemmas: justice, non-injury, fidelity, veracity, reparation, beneficence, self-improvement, gratitude, liberty, and respectfulness (Audi, 2009). Once these moral obligations are engraved into someone’s mind, it is much easier for a person to make a decision based on ethical grounds.

    Read More

  • The Characteristics Of Moral And Ethical Reasoning In Business Ethics

    1085 Words  | 3 Pages

    In the business world there are many fundamental aspects and situations that can lead to several issues. In order to find an optimal and professional solution, business decision makers need to apply moral and ethical standards. And it is at that moment in which business ethics perform its role. Business ethics, which is in charge of examine how companies and individuals should act in business situations, is very essential in order to reach a common agreement and to work within the laws of business and solve an arisen dilemma. Working of the hand of ethical business companies, employees, investors, directors, and even individual officers can be beneficiated and obtain most favorable outcomes.

    Read More

  • The Importance Of Business Ethics In Japan

    1083 Words  | 3 Pages

    Business ethics are a set of moral rules that govern how a business operates, how people should be treated within an organization, and how business decisions are made. They are a crucial part of employment and in managing a sustainable business, mainly because of the serious consequences that can result from decisions made with a lack of regard to ethics. Even if you don’t believe that good ethics don’t contribute to profit levels, you should realize those poor ethics have a negative effect on your bottom line in the long-run. Every business in every industry has certain guidelines to which its employees must stick to, and regularly outline such aspects in employee handbooks.

    Read More

  • The Importance of Ethics in Society

    874 Words  | 2 Pages

    Ethics are moral principles or values that govern the conduct of an individual or a group.It is not a burden to bear, but a prudent and effective guide which furthers life and success. Ethics are important not only in business but in academics and society as well because it is an essential part of the foundation on which a civilized society is built.

    Read More

More about Accounting Ethics In Accounting

Open Document