In other words, people's opinion on accounting companies can be easily distorted by accounting scandals and unethical activities that harm clients.
The importance of ethics in accounting is also revealed by the legal actions that can be taken against individuals or companies in the accounting field that behave in unethical manners. There are several examples that reveal the importance of ethics in the accounting field, and their repercussions (ENotes, 2010). The legal actions in such cases are various.
There are numerous accounting scandals that can be studied in order to understand the phenomenon and its effects. One of the most important accounting scandals that are considered to be partly responsible for the economic and financial crisis is represented by scandal involving Fannie Mae. In this case, senior executives are accused of manipulating accounting in order to collect important sums of money that rook the form of undeserved bonuses and to deceive investors (MSNBC, 2006).
Another important accounting scandal is represented by the Enron scandal. In this case, the unethical behavior is represented by fraud (Buondonno et al., 2010). The company's managers committed significant frauds that led to the bankruptcy of the company and its owners. Fraud is also the reason that determined the Tyco scandal. Same as in the case of Enron, the executive managers at Tyco serve time in jail.
In order to ensure that the accounting profession follows high ethical standards, it is recommended to include ethical codes in the strategy of the company in case. This way, employees understand that ethics are an important part of the business and must be respected. This applies to both managers and their...
That ethics has become so controversial reflects the individual nature of ethics. Each individual choice is imbued with certain ethical assumptions, but those assumptions will vary from person to person. Only when those assumptions are shared by a large enough segment of society do they become norms. For the individual, the choice often becomes the decision between one's personal code of ethics and that of society as a whole. Even the
Ethics in Statistics Ethical Issues in Business Statistics Statistical knowledge has been under gradual growth since the beginning of 20th century. This growth has subsequently advanced into broad dimensions of data handling and analysis, resulting into a fully-fledged scientific discipline. Statistics is a science that serves within the framework of construction, and theoretical mathematical applications in order to analyze a set of numerical data hence obtaining credible knowledge (Kemptborne, 1979). Statisticians, thereby,
Ethics and the Legal Environment George Mackee has a problem. His wife is after him, his boss is after him, and one day soon, the whole community of Hondo, Texas may be after him. George has one very large, very simple problem: He works for Ardnak Plastics, Inc. Ardnack Plastics is a small manufacturing company making small parts for small machinery, yet its corporate problems are far larger. In the wake
Morality in America Morals are defined as a set of principles of right action and behavior for the individual. The traditional morals of any given society are the set of moral principles by which the majority of its members have lived over a long time, a consensus which that society has reached on what is considered correct and decent behavior. It is the way one's society expectsone to behave, even if
Ethics, Morality, Values, And Beliefs According to "the ethics site," an Internet resource for college instructors regarding the teaching of different ethical systems, ethics may be defined as "the explicit, philosophical reflection on moral beliefs and practices. The difference between ethics and morality is similar to the difference between musicology and music. Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music."
Ethics Awareness Inventory According to the Ethics Inventory, I fell into two categories: those who are obligation-oriented, and those who are results-oriented. In some ways, the ethical beliefs of these two categories are in conflict; for instance, usually people who base ethical decisions on obligation or duty are not as concerned with results as with principles. However, I scored high in the results-oriented category as well. I believe that my ability
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now