Public Accounting Firm's Ethical Environment

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The measure of the success of any business corporation undoubtedly indicates its economic performance. However, in order to achieve outstanding performance in the long term, the corporation ought to make the best use of the experience and talent of the entire personnel. It should always guard its upright reputation as an employer, supplier of services and goods, citizen and buyer of the countries and regions of its operation (Allaire & Rousseau 2014). Directors of any corporation have a role to act in the top interest of the corporation which includes the responsibility to assess, equitably and fairly, the impacts of the company’s decisions and actions on its stakeholders. A public accounting firm’s ethical environment also plays a very special …show more content…
However, understanding members’ perception of an organizations ethical environment is important because of its potential influence on its members’ ethical behavior Identified throughout the text are three components that hone in on what makes up the organization’s ethical environment. Those elements are social norms (better known as mission and values; leadership and management influence; and peer group influence); social practices such as procedures, rules and codes of ethics; and ethics training, and last but not least outcomes which consist of rewards and sanctions. In my opinion, there will always be a discrepancy within these views because partners hold the company at a higher standard as opposed to the non-partners who do value their position and career but probably not to the extreme as the partners because they have less to lose. This is primarily because the partners contribute greatly to wealth creating activities and capacity of the company as well as being risk bearers and beneficiaries of the corporation. I believe that, the reason behind paying attention to them by the company is, because their demands have fundamental value in terms of normative approach, so it the responsibility of the company to fulfill their legitimate claims of the …show more content…
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

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