Ethical Accounting Professionals

Improved Essays
The organizational behavior influences the ethical behavior of accounting professionals. Bobek, Hageman, and Radtke (2015) studied reasons of potential discrepancies between the leaders and non-leaders of the accounting firms. The firm’s ethical norms directly influence the behavior of its members. The researchers indicated that it is important to identify and understand the factors that affect ethical norms in the organization (p. 125). The firm’s leaders should play a meaningful role in building and supporting the ethical environment. It is essential to analyze motives of perceptions’ inconsistencies in of the ethical setting between the management, partners, and other accounting professionals of the firm. Bobek et al. (2015) examined the …show more content…
(2014) examined the study of Brown (2005), Lin (2009), Pastoriza (2007), and Mayer (2009) to analyze the effect of management ethical leadership on employees’ behavior, organizational performance, and financial results. The theory demonstrated that the company leadership creates an ethical climate they need to achieve expectations. The management behavior has a cascading effect on employee’s actions. Then, it allows the top management guiding collective perceptions and build a favorable organization structure (p. 44). Shin et al. agreed with Menz (2012) and Brown (2005) that management through the decision-making, communication, and sanctions manipulates with the organization environment (p. 44). Senior executives possess the knowledge of Code of Ethics to regulate the justice climate, formulate norms, and limit employees’ …show more content…
(2012) examined the study of Brown (2005), Gramling (2004), Maroney and McDevitt (2008), and Sweeney 2010) to analyze the influence of moral intensity and ethics on the decision-making in accounting. The moral intensity is the most dominant factor that increases the effect of the combined power of internal audit functions and management ethics on financial decisions, reporting, and disclosure (pp. 352-353). Arel et al. agreed with Trevino 1(986) and Prawitt (2009) that numerous factors influence ethical decisions of accountants. Among well-known are the corporate culture and style of the corporate governance (p. 353). The internal audit function is the element and tool of the corporate governance. The Committee of the Sponsoring Organizations of the Treadway Commission (COSO) and Institute of Internal Auditors (IIA) provide a detailed guidance on the implementation of internal control. The effective internal control function and the ethicalness of accounting processes generate ethical financial decisions and reliable financial reporting (pp.

Related Documents

  • Improved Essays

    One practice that is discussed in the text is ‘Risk Management Approach to Reputational Capital’. Carly Fiorina said, “Good ethics and good judgement are what must drive business behavior… Employees and customer always know what’s wrong.” (Taking Sides. page 58) Using this approach can give insight to your business on potential risk that can arise. Being able to get feedback from employees along with your consumer can put your corporation in an advantage. Talk with the staff, the suppliers, and every other group that is involved with your business.…

    • 1533 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Business Ethics and Social Responsibility Ethics is a concept of what is right and what is wrong. Ethical principles guide individuals’ behaviors toward moral and immoral activities. In the business world, an emerging concern for most firms is Corporate Social Responsibility. The effect of corporate responsibilities on the company’s public image and reputation is very effective. The company’s actions should safeguard the environment for new generations, as well as working toward sustainable development.…

    • 769 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Since companies have duties that go past their partners’ interests, they are also advocates. I believe that, in order to achieve the objectives of the company, the directors should always ensure that the interests of the accounting professional’s perceptions of their particular firm are put into consideration. Since performance appraisals are seemingly linked to the three elements enlisted in my paper future research should investigate if in fact ethical procedures are actually being incorporated into CPA firms evaluating systems, and showing the significance of following such behavior and procedures. Consequently, CPA firms can come up with these findings from such studies throughout the research done to better the specific perceptions of what a strong ethical environment…

    • 976 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Having good moral decisions while pushing forth through the forces and factors that are negative, sets an organizational value of ethics in a positive light. Corporate ethical culture is a multi-system framework in which aligns with ethical judgments and actions and becomes the essential component of the company’s culture. Furthermore, the effects of the ethical climate and culture on ethical behavior are even supported across cultures. Such systems can involve polices and codes, performance management, orientation and training, the formal decision process, as well as the authority structure of the company (Madu, B., 2012). These characteristics represent the external side of the organization.…

    • 1465 Words
    • 6 Pages
    Decent Essays
  • Improved Essays

    The business ethics perspective analyzes business ethics problems as a conflict between the prima facie duty of profitability and some other prima facie duty of corporate citizenship. This analysis identifies the profitability issue and the corporate citizenship issue, considers all relevant deliberation data, then arrives at a conclusion concerning the actual duty in this case. Marketing ethics is a major issue in the business. The product and promotion of the marketing 4Ps are the major concern for business ethics. It is very important the product should be beneficial to customers and fulfill their needs and wants.…

    • 758 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Company Q Stakeholders

    • 1376 Words
    • 6 Pages

    Create an ethical culture 2. Develop Corporate governance plan 3. Implement an organizational ethics program Ethical culture is the atmosphere in which the decision making process is determining the employee’s answers to ethical issues are correct or mistaken. Ethical culture is used to describe the portions of corporate culture that captures the actions and philosophies that an organization identifies as appropriate behavior Crafting an ethical culture requires leadership to define values and compliance. The participants of a company 's board of directors undertake legal accountability for the firm 's resources and choices, and they appoint its top executive officers to promote and carry out the ethical plan.…

    • 1376 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Stakeholder agendas and needs need to be holistically assessed in order to acknowledge and prevent these unethical practices in the workplace. In essence, a strategic plan to utilize an integrity continuity plan will be defined in this study of stakeholder needs and agendas through the context of corporate social responsibility.…

    • 945 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Ethics can be important in many fields including project management. Ethics also always described as “doing right thing” and it is measured based on the degree of the trustworthiness and integrity in by which companies and individual conduct business (Mason, 2009). Conferring to the previous study from Mason (2009), he proposed that ethics are concerned about trustworthy and integrity for the customers especially in business. However, ethics are very important in construction field as well because in terms of managing projects, ethics play important roles to gain trustworthy from stakeholders. Stakeholders by mean are the person involves direct or indirectly in an organization and affect the organization’s objectives.…

    • 816 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    While the first theory thinks of an organization more as a system, the second is all about relations between people inside the organization. 2) What are the key drivers of organizational engagement in corporate social responsibility (CSR)? Utilizing different approaches to business ethics, as described in the book, reflect in what ways these drivers are ethically right or wrong. Corporate social responsibility takes place if organizations are adhering to legal and other set standards, to do business in a way that considers multiple terms like e.g. the environment, social costs and benefits, and economical impact for the welfare of the society it is situated in (Clegg et al.…

    • 990 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Modern Western Ethics

    • 1028 Words
    • 4 Pages

    The ethical standards and expectations of society are reflected in the ethical standards and expectation of business enterprises. As a business leader or manager, it is critical…

    • 1028 Words
    • 4 Pages
    Improved Essays