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Accounting Ethics In Accounting

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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...

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... 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.

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