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Discuss the view that increased regulation will not necessarily lead to higher ethical standards.
Finance & Accounting
Pages 8 (2008 words)
INCREASED REGULATION WILL NOT NECESSARILY LEAD TO HIGHER ETHICAL STANDARDS Ethics is defined as the moral values that define right or wrong. It has been said that the ethical standards are to be increased however it has been said by different people that regulations can be increased to increase the ethical standards…
According to Milton Friedman, “There is one and only one responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game”. Therefore, it clearly says that increased regulations will result in higher ethical standards. However, on the other hand, Albert Camus says that ‘Integrity has no need of rules’ which reflects that it is up to the organization to become more ethical then the regulations. The relationship between regulation and ethical standards is not as easy as it looks. Increasing regulations may or may not lead to increase in ethical standards. If it would have been the case then companies to maintain the conduct of its employees ethically sound would have been competing on number of regulations than their effectiveness. This essay will explore and analyse the view that increased regulation does not lead to increase in the ethical standards. On developing the general argument, this essay will also attempt to develop support from variation in accounting and auditing treatments with level of compliance to financial regulation and ethical standard. ...
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