Ethics and professionalism are widely used in corporate organizations to refer to the conduct of employers and employees. Although the two concepts have similarities, they differ in other aspects. The American Institute of Certified Public Accountants (AICPA 1a) define ethics in the accounting profession as the moral standards or principles that govern their behavior in carrying out their responsibilities. Ethics can also mean guidelines imposed on an individual to direct the behaviors. The elements of ethics include integrity and honesty.
The above also points out to another important implication of ethical leadership. The leadership theory strongly encourages the leader to place the vision and mission of the organisation at the core of decision-making. Therefore, the basis for the framework and decision-making should always be accomplishing and following the organisation’s mission statement and existing framework. The other important step is to ensure the ethical framework guiding the leadership is visible and part of the larger conversation within the company. Ethical leadership should always be explained, as well as re-examined.
The APB’s Ethical Standards are also similar in principle to IFAC’s code. (book) APB Ethical Standards are concerned with the integrity, objectivity and independence of auditors and the most important types of potential threats that could influence these values. Independence is the foundation of the auditing profession. The primary objective of auditors is to ensure that the financial statements prepared by the directors are correct and to provide independent assurance to the shareholders that are indeed prepared correctly. The auditor then issues a report, which includes an opinion as to whether the financial statements give a true and fair view.
As a manager, it is very important that you understand and adhere to the ethical and legal obligations of your position in order to meet the expectations of all stakeholders, and to set an example of such behavior for others. Managers must go by both their own ethics and the
Lastly, this paper will elaborate as to how my ethical perspective has evolved throughout the program. 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).
Since the framework serves as the compass guiding the way for internal auditors it was important to add a mission statement to state the overall goal of internal auditing. The mission statement requires internal auditors to provide assurance to stakeholders by doing an in depth and thorough analysis of the evidence gathered. The mission statement also requires that internal auditors provide insight through advice to the stakeholders of the company. For example these points in the mission statement prevent an internal auditor or the management of a company from preventing the release of the information gathered and the result of the internal audit from stakeholders and society. Adding the core principles to the IPPF helps society and stakeholders in two ways.
Introduction 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.
Discuss the practical application of the professional code of ethics when undertaking an auditing engagement. Code of Ethics defines the principles and expectations which rule individuals’ and organizations’ behavior in the performance of internal audit. Moreover, code of ethics characterizes the minimum demands for behavior expectations and not determinate activities. Its aim is to forward, internal auditing, an ethical culture. “An investigation into how well (or poorly) a company conforms to the ethical standards of its industry or society generally.
So a worker has to abide by the personal ethics, organisational and also professional ethics. An individual must always act ethical to receive good rewards (Louise Kretzschmar, 2012) Corporate governance is the process of supervision and control intended to ensure that the company management acts accordance with the interest of the shareholders. This means that corporate governance
In the business world values co-relate with an organisations vision. Values are usually “the-behind-the-scene” guidelines to direct the business activities and how they should be operated. They ensure that the public is aware of what the organisation stands for and what they perceive as important principles for their business. Traits such as integrity, professionalism, honesty, respect and commitment are some of the values that can be observed. J.Landauer and J.Rowland reckon that values are essential to ethics.