Ethics have a very serious bond with legality as sometimes mortality differs as it lacks certainty. If fulfilling and implementing a legal thing might turn to be unethical in behavior, as each individual perceives morality differently (Souster, 2011). The right and the wrong is determine by the proximity of application of laws and moral values of the society and thus it becomes important to not only enforce ethics in professional capacity but also to safeguard the sanctity of the independence of the professions like medicine, law, military and even accountancy. The unethical behavior and lack of confidentiality in accounting profession and services will terminate the independence and integrity of the accountants, organizations and even the public at large. The ethical dilemmas especially the grey areas which need to be assessed by the accountants for the organization as well as the services they provide through firms which enables them to not jeopardize their professional values over the familiarity with the client or not doing their job with professional due care (AICPA, 1998). Ethical Approaches and Behavior The ethical approaches are notable by Absolutism or dogmatism, which highlights the importance of believing in universally accepted codes of conducts. The right is certain and accepted in every corner of hemisphere e.g. to murder a person is wrong and to tell the truth is always right which leads to the ethical behavior of deontological approach. Another ethical approach divulges Relativism or pragmatism that argues over the circumstances or consequences that if to murder is justice and to tell a lie for a notable cause than it is ethically right (Souster, 2011). Ethical code of conduct is label by proximity of duties and responsibilities of the professional accountants in the organizations. The ethical behavior is express in relative consequential approach that is term as teleological, derived from a Greek word ‘telos,’ which means ‘the end’. The action is right if the resultant of those actions is acceptable depending upon the ethical stances. The ethical stance of Utilitarian depicts that the action is deem right if it benefit the majority in large. This might rapture the considerations of the minorities’ ethical morals but here pluralists views to account for actions that benefits both the majority and minority. Lastly, egoistic stances favor only the action that is right for them being a selfish approach to ethical morals. The ethical approaches by consequential and role based leads to different ethical norms and decision by the organization. The personal capacity and the professional life has a strong connection in consequential approach and is deemed to be right or wrong if one goes wrong or right (Souster, 2011). Code of Ethics in Professional Accountancy Ethical standards and codes of conduct are mandatory in practicing accountancy as this profession has a wide range of services from statutory audit, taxation, financial services etc that needs specialized skills and knowledge to encounter the international standards of accounting and finance. The ethical code of conduct are define by the International Federation of Accountants (IFAC) and other professional bodies such as ACCA, CA on Integrity, Objectivity, Confidentiality, Professional behavior and Professional competence and due care. Integrity is steadfast and transparency is voluntary for accountants in their business and professional relationship. Objectivity and biasness should not arise due to any familiarity or personal issues conflicting with the professional judgment. If the accountant is being over familiar
Ethics in Accounting Introduction Ethics is derivative from an ancient Greek word ‘ethikos’ that is referred to traditions and lifestyles. …
Final Paper Introduction The significance and the necessity of ethics and law in the field of business have long been recognized owing to the increasing unethical practices that are adopted by the business organizations. It needs to be mentioned in this context that ethics as well as laws in the business world need to be followed for the reason of avoiding possible legal accusations or procedures.
It finally makes recommendations on how accountants can be made more responsive to ethical standards and methods. Keywords: Accounting, Ethics, Sarbanes-Oxley, Stakeholders Table of Content Executive Summary………………………………………..4 Introduction……………………………………………….
Ethics and Business
Ethics are the moral standards and codes of conduct that society uses to judge human behavior. Ethics span around many careers and fields since they guide the people in different operations. Without professional codes of conduct, people in various fields will not work efficiently and effectively as they will not have any rules to govern and control their operations.
Accounting, which remains an important aspect of business, has also changed rapidly, making it hard for e accountants to perform well in their duties. It is thus important to make changes in the accounting curriculum to enable incorporation of new concepts required to operate in the modified corporate sector.
The information related to the Barclay’s Bank in LIBOR rate fixing scandal has led to the drawing attention to the ethical issues resulting in the breach of the ethical issues related to the financial institution over the last five years. Thus the corporate ethical breach has increased in the recent times due to the increase in the loopholes of the company’s ethics (International Risk, Crisis & Business Continuity management, 2011, p.1).
The world is being rocked with many cases of accountants breaching business ethics. What these organizations fail to consider is the environment that employees work in. Accountants may be responsible people who change with the dynamics of the organization.
The example of corporate accounting scandals that occurred over the years have been analyzed to find the impacts of unethical accounting practices in such cases. This helped to explain the importance of ethical accounting practices in the companies. The accountability of the accountants and auditors in providing true financial disclosures for protection of the investors has been emphasized in this research.
In the article of the New York Times, Claudia Parsons (2009) cites Steve Priest, president of Ethical Leadership Group, who eloquently sums up what can be justly called as modern crisis of accounting ethics: “Investors don’t trust the companies they’re investing in.
Stewarts article is of particular importance in understanding the organizational arrangements to ensure ethical accounting and financial practices. This article provides a debate on the objectivity and success of standards applied to organziations and ends up weighing between