Essay on Review of Accounting Ethics

1033 Words Dec 31st, 2012 5 Pages
Review of Accounting Ethics
Establishing principles for ethical behavior frequently starts with a policy on ethics. Businesses acquire a policy on ethics to guide their measures and to set up a general meaning of correct versus incorrect. According to the American Library Association, code of ethics is a handbook for suitable behavior (2012).
Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer
Existing businesses and regulatory environment is more conductive behavior because some companies and managers feel as though they can get away with it. The unpredictable increase and
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According to the U.S. Securities and Exchange Commission, within the previous three years, there has numerous businesses and audit organizations that has been held responsible for violation of accounting ethics and other monetary irregularities for rebelliousness of disclosure standards (2012). Richard Schulze, creator and chairman, neglected to take action in a method that was standard with the audit committee's permission and excellent governance procedures and he produced serious possibilities of employee revenge and corporation liability. The best news for shareholders is that the board of directors at Best Buy and HP took major steps to look after the shareholders. The board members that observe CEOs make uncertain ethical decisions, should not hang around to decide if there is an accounting violation to make alterations.
As a CFO, recommend which measures could have been taken to prevent this ethical breach and how each measure should be implemented in the future.
For the worthy of the business, and for the worthy of anyone’s career, it is very significant to stay away from ethical problems and equally, to act morally (Smith, 2003). Mangers and/or supervisors should be a model to the actions they want their employees to obtain. The company’s staff will observe how the managers perform and they will perform the same exact manner. When corporations create a code of conduct, they need to make sure that they live up to

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