1. Introduction:
Currently, in the complex global business environment, economic performance alone no longer guarantees business success. One of the integral driving factors for this success is the transparency and integrity of the management system. In many countries, there is enormous number of leading corporations coordinating ethical management into business practices to stay in tune with wider societal values.
However, there still exist corporations where profit triumphs all other considerations. In Vietnam, with lax management mechanism and legal loopholes, many monstrous corporate scandals relating to unethical behaviors have been revealed. These corporate scandals extensively hurt public confidence in financial reporting and question the morality of businessman in general and accountants in particular.
Confronting with these burning issues, our report aims to provide comprehensive picture about the importance of ethics in business and accounting. Firstly, we will focus on the various perspectives of ethics and how ethics affects enterprise and accountants. Secondly, we present some real-world examples associating with the unethical business practices, which cause irreparable damages for Vietnam economy. Lastly, lessons and recommendations for corporate governance and state administration are raised.
2. The importance of ethics in business and accounting.
2.1. Definition of ethics
Ethics is a system of moral principles, with respect to the rightness and wrongness of certain actions and the ends of those actions.
2.2. The significance of ethics in business
In modern world, business has experienced the essential role of ethics in many perspectives. Generally, the primary role of ethics is to keep a company and its ...
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The Vietnam War: A Concise International History is a strong book that portrays a vivid picture of both sides of the war. By getting access to new information and using valid sources, Lawrence’s study deserves credibility. After reading this book, a new light and understanding of the Vietnam war exists.
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For a company to be successful ethically, it must go beyond the notion of simple legal compliance and adopt a values-based organizational culture. A corporate code of ethics can be a very valuable and integral part of a company’s culture but I believe that it is not strong enough to stand alone. Thought and care must go into constructing the code of ethics and the implementation of it. Companies need to infuse ethics and integrity throughout their corporate culture as well as into their definition of success. To be successfully ethical, companies must go beyond the notion of simple legal compliance and adopt a values-based organizational culture.
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
An organization needs to adhere to ethics in order to effectively implement its mission, vision, and objectives in a way in which offers a solid foundation to management and their subordinates to properly develop and implement its strategies. By doing so, the organization as a whole is essentially subscribing to one commonality that directs all of the actions of the employees of the organization. Additionally, it assists in preventing such employees from divergence in regard to the proposed strategic guideline. Ethics additionally ensures that a strategic plan is developed in accordance to the interests of the appropriate stakeholders of the organization, both internal and external (Jin & Drozdenko, 2010). Likewise, corporate governance that stems from various regulatory parties makes it necessary for organizations to maintain a high degree of ethical standards; this is done by incorporating ethics within the organization’s strategic plan so as to foster a positive corporate image for the stakeholders and general public (Min-Dong Paul, 2009).
As legal scholar and philosopher David Luban explains, “You can’t teach good judgment through general rules, because you already need judgment to know how rules apply. Judgment is therefore always and irredeemably particular” which means, ethics are not alone enough to make a legal organization. Though ethics are morally influences us lot it is needed. Ethics in business is very important because it affect not only to the employees and employers of the organizations but also to the whole society is affected by it. Though ethical organization can attract and keep investors it is not the only benefit of it. Investors can invest their valuable money peacefully with confident of their money is save. Employees know that they are not allowed with unethical behaviors and finally customers can buy products which are worth to the money they spend. Ultimately, one of the most difficult assets of the company, reputation, can be built through ethics very easily without wasting extra money on unnecessary promotional
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Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation (Crane & Matten, 2010). Since law does not necessarily cover the morality of many controversial issues, moral reflection ought to be performed on any action, regardless of its lawfulness. The growing power of business in today’s society has enabled businesses to significantly impact the world. Hence, business ethics is highly relevant as it could determine whether businesses contribute or cause harm to the society at large.
Ethics is a system of moral principles and a branch of philosophy which defines what is acceptable for both individuals and society. It is a philosophy that covers a whole range of things that have an importance in everyday situations. Ethics are vital in everyones lives, it includes human values, and how to have a good life, our rights and responsibilities, moral decisions what is right and wrong, good and bad. Moral principles affect how people make decisions and lead their lives (BBC, 2013). There are many different beliefs about were ethics come from. These consist of; God and Religion, human conscience, the example of good human beings and a huge desire for the best for people in each unique situation, and political power (BBC, 2013).