Conclusion: As a whole this source tries to explain about how the management is pressuring accountant to conduct the false information just for personal gain. As this source shows a part that the accountant are not ethical for their own gain but because of the pressure from management. Source 6: Ethical issue facing by the accounting profession Lister, J. (2017). Ethical Issues Facing the Accounting Profession.
Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility. The behavior and the individual values of the leader provide the direction to the business. Leader’s actions in term of ethical behavior and unethical behavior gives ideas to the employee and other stakeholders that what need to follow and what values are aspired in an organization. The position of the leader with moral and ethical values is most important to provide the solutions to ethical issues in a workplace. This also evident from above discussion that ethical leadership is also crucial in developing the ethical culture within an organization.
Introduction Professional accountants have a key role in keeping, auditing and inspecting the financial records of individuals or business concerned and preparing the financial and tax reports. It has a unique characteristic which includes the public interest. Whilst acting in the public interest, a professional accountant has certain rules or code to act in accordance with. Ethical behavior is inherent in the practice of accounting due to responsibilities the profession has toward serving clients, the public and fellow practitioners. This ethical behavior is reflected in the code of conduct in diverse accountancy professional organizations.
An auditor supplies the independence and objectivity to a financial report complementing the high expectations of third party users The professional judgement required is influenced by some professional traits such as the auditor’s experience and capability of the auditors training. In additional to the professional traits influencing the auditor’s judgement, the auditors is also influenced by behavioural and ethical traits. Auditors have a responsibly to ensure that ethical standards are upheld, ensuring the social exceptions of auditors
This was evident in his constant cost cutting messages. These visionary traits attributed to this leadership style often result from critical thinking, the compilation of facts and finding ways to solve a variety of problems (teamwork) 4. The law firm report identified Ebbers as the source of a culture that resulted in the company’s accounting fraud. How did Ebbers’s leadership style contribute to the values and actions of key managers? How could key managers perform their jobs effectively and ethically in the WorldCom culture?
According to king III reports, ethics (integrity and responsibility) is the foundation of and reason for corporate governance. The ethics of govern once requires the board to ensure that the company is run ethically. As this achieved the company earns the necessary approval _ its license to operate from those affected and affecting its operations. (LoDSA, 2009: p21). Unethical behaviour inside the company is frequently caused by unethical individuals.
False accounting also results in duping investors that trust the financial records of the company. Leading people to invest in them based on false success. Accounting transparency is vital for the success of any organization. It is important for the investors, the customers and the bettering of the
It is essential for individuals and those representing an organization to understand what is an ethical dilemma. Wells Fargo financial corporation was involved in a dramatic ethical issue due to millions of unauthorized bank account openings. As explained in The PLUS Ethical Decision-Making Model, “many organizations battle to develop a simple set of guidelines that make it easier for individual employees, regardless of position or level, to be confident that his/her decisions meet all of the competing standards for effective and ethical decision-making” (n.d). The Wells Fargo scandal is evident prove that employees lacked ethical judgment and management supervision. The seven ethical decision-making steps foster straightforward thinking that
Considering that accountants deal with the center of companies and organizations accountants owe a fiduciary responsibility to act professionally and in the best passions of their employers. Knowing the basics of professionalism in accounting is important part of accounting education. Ethical business techniques are an inseparable element of professionalism in accounting. Operating with money and financial reporting generates several chances for unethical behaviors, such as theft and fraud. Even though government organizations regularly work to identify and address areas of ethical concern in accounting, all accountants have an obligation to act ethically regardless of what doubtful behaviors the law may allow.
So, it is important for the organization to understand, establish and demonstrate a business ethics framework relevant to the company. By enabling a sponsorship to the framework is an expression of social policy in the workplace by employers for purposes such as determining controlling entities. Morals are linked with personal behavior whereas ethics are related to organizational principles to normalize the behavior of all employees - including top executives and other management. Ethical behavior refers to conduct that meets moral and legal commitments to clients and coworkers. It 's clear that ethics is an important dimension for