Abdolmohammadi, M., Fedorowicz, J. and Davis, O. (2009) findings indicate that despite the attention in recent years to the importance of ethics and social responsibility in the accounting curriculum and the profession, the ethical reasoning scores of those attracted to public accounting seems to have actually deteriorated over the past 15 years. This outcome suggests that there is a need for improved training and education of public accountants in ethical reasoning and decision making. The report concluded that ethical reasoning increases with age and education, but education is the primary factor in this relationship.
Abdolmohammadi, M., Fedorowicz, J. and Davis, O. (2009) concluded from their literature that higher levels of ethical reasoning are preferred over lower levels, especially in a profession like accounting where public trust is crucial to the survival of the profession. Codes of ethics are adopted to protect both the profession and the public and aim to influence accounting professionals to follow high levels of moral behaviour that contribute to the value of the accounting profession. In recognizing the importance of ethics to the accounting profession, many colleges and universities have incorporated ethics into the accounting curriculum in recent years to meet industry demands.
Somers, M. (2001) found that a growing interest in codes of ethics is evident in organizations over the past few decades. In his article, Somers outlines the influence of codes on employee behaviour in organizations. He states the effects of the growing adoption of codes of ethics in organizations is not being addressed as unethical perceptions and behaviour continue.
Somers carried out a survey of a sample of management accountants in th...
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...ough just to have a code of ethics in place but it needs to be reinforced and put into practise. In this way threats can be minimized and safeguards put it in place to ensure temptation does not occur. Ethical decisions and perceptions are made on a personal, societal and professional level. I feel all three areas need to be addressed while attempting to improve ethical standards in accountancy reporting, management, governance and disciplinary terms. The very nature of the accountancy profession means a lot of trust is placed in their hands as their judgment and guidance is relied upon by clients, fellow colleagues and the general public.
Yet it is clear that ethical practises are not being complied with and I feel that better education and training to make accountants aware of ethical dilemmas and the guidelines in place to help them reach the right judgement.
Ethics plays a vital role in developing accurate and high quality financial statements for management, financial institutions, and investors. As management utilizes financial statements to make decisions regarding the operations of the business, it is necessary to review accurate financial statements to make strategic decisions about the future of the organization. Investors and financial institutions require accurate financial statements to make informed decisions upon whether to invest funds into the organization or the wisdom of lending funds to said organization.
First, the Code of Professional Conduct encourages accountants to behave ethically. Encouraging accountants to behavior ethically is a strength because it helps create customer loyalty, positive work environments, and dedicated employees, which helps avoids legal issues. Accounting professionals have to behave ethically just because of the profession they are in. Accountants need to behave ethically because the investors, creditors, and rest of the public rely on an accountant’s professional judgment to make
In today’s global society, a Code of Ethics policy is used to label established, acceptable behaviors among that industry’s business associates, potential investors, and the corporation’s executive officers and employees, and most important, the consumer (Ethics Resource Center, 2003). In an attempt to promote an increased efficiency and productivity potential level, among employees and prospective clients, a corporation’s standard Code of Ethics should guide its members toward a more in-depth examination of their personal moral activity, and how these actions affect the people or acquaintances they encounter. A company should utilize this strategy as a model for the professional behaviors and responsibilities of its constituents, and proves the occupational advancement of that business. Ethics are important in every level of a corporation, but specifically in the day-to-day actions of its members, and the image the company broadcasts to its associates is fundamental in building a stable business foundation. These pledges are a vital communication tool used to covey the firm’s standards for business operations, and predominantly, its relationships with the surrounding communities (Ethics Resource Center, 2003).
Incorporating ethics into everyday decisions in the business world can greatly reduce the scandalous behavior that has as of late has run ramped. Obviously, we have seen the results and consequences of business conducted absent any moral or ethical boundaries. When decisions are made without the consultation of ethics there is no direction from the moral compass and surely consequences will follow. Choices contemplated by managers may often seem difficult, but assessing the options against ethics can assist the manager in making the best decision.
The importance of having a code of ethics is to define acceptable behaviors and promote higher standards of practice within a company. The code should provide a benchmark for...
As an individual and ambitious accounting student with plans to pursue a career in public accounting, I recognize the importance of understanding my core personal values and behaviors that guide the ethical principles of my everyday actions. I recognize that I have a responsibility to myself, family, future colleagues, future clients, and the general public to follow certain guidelines and conduct myself in an ethical manner. Furthermore, I acknowledge the idea that ethical dilemmas will occur, but I am committed to my “Personal Code of Ethical Values” (as seen above) that represent my desire to live ethically in every facet of my life.
When working within any professional body, an individual will be subjected to circumstances in which personal ethics will come into play. The Accounting profession is no different as ethical questions arise as part of any working day and can effect how an individual or the company conducts business. These questions can vary greatly in practice from selection of new customers to the rates at which those clients are going to be charged. These ethical questions are raised regularly within the workplace and each employee will react to them differently. The varying reactions will depend on the morality of each individual, or each employees own ‘ethics’. As each employee has their own set of values companies must be alert to the fact that some of their employees may have more ‘flexible’ morals than others. This ‘flexible’ morality can lead to corruption and manipulation within the workplace and can give companies serious problems. As a result of this, all of the main professional accounting bodies have begun to re-introduce mandatory courses teaching ethics to their employees. As well as this, ‘A Guide to professional ethics’ was published which contains a number of different principles in order to govern the behaviour of accountants and also to identify and reduce the greatest areas of risk with respect to unethical behaviour.
The same ethical compass we traverse through life should be set on the same path we traverse during our professional careers as well as during our academic path. When it comes to professional ethics, this may be viewed as a means to manage a moral situation an individual is faced with in regards to other professional colleagues and even conduct within the workplace. On an academic standpoint, this is similar to that of professional ethics, but this is steered toward the moral decision students and faculty members face when they accomplish to do the right thing. While both academic and professional ethics play out differently based on how each one is managed, they are both nonetheless extremely important building blocks of a person’s moral character and trustworthiness.
To provide an example of a breach of ethical conduct in the workplace, we may remember the case of a financial manager in a corporation that decided not to pay overtime to some employees. After a deep outside investigation, the company was summoned with thousands of dollars to remedy the payment that was supposed to be paid to all employees who worked more than forty hours per week. Again, it is needed more than just a booklet stating that the company adheres to the code of business ethics. It is needed serious managers that can run the company with the most seriousness as possible. Consequently, any written codes of business ethics, regardless of how well it has been crafted, need people that adhere to its internal content with a serious desire to do the right thing.
Romal, Jane B., and Hibschweiler, Arlene M. "Improving Professionals Ethics: Steps for Implementing Change." The CPA Journal (2004). Retrieved on 16 September 2006 .
Ethics is commonly taught in all accounting courses in higher education and continues to be taught by companies when training accountants and auditors. With so many different accounting services now provided by accounting firms they have a duty to have ethical standards. In recent years fraud resulting from accounting
In 2005 Dellaportas et al. (p.xvii) identified that accountants and other business professionals are often criticised for lacking the ethical sensitivity to recognise ethical dilemmas when they arise. They said that these professionals focused too much on the technical issues and overlooked the moral dimension. Dellaportas et al. concluded that it is critical for students to be sensitive to the moral components of seemingly technical questions. There are many ethical theories that students can be taught to help them recognise and resolve ethical issues. This essay will focus on virtue ethics, deontological ethics and how these can help students in their professional career.
“Codes of ethics should set members apart from others, who may purport to provide similar services to the public, by establishing a set of principles by which to work. However, in order for the code to have merit and respect, it must contain procedures for monitoring the members' adherence and for disciplining those members who act in breach of the standards” (Hildebrand, 2003).
The Code of Ethics of the professional accounting bodies in Australia and its fundamental principles ………………………………………………………………………….…………3
Ethics education is now integrated into new professionals mainly in auditing course so that they can take morally dependable decisions. Therefore it is suggested that ethical education must be made lifelong which might be started at early in pre-qualification programmes and continue throughout his career.