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Accounting Ethics – The Importance of Ethical Practices in business and personal financial


What is moral accounting? The concept of accounting ethics focuses on the ethical and values-based settings for judgments and decisions auditor or audit firm establishment face daily in their work. Because of the nature of their communication of financial information to business managers, shareholders and the public, as well accounting and auditing business entities, accountants and accounting agencies are held to the highest standards of transparency and ethics in relation to their studies and the information they convey. Accounting can be used as a way to learn how and why companies can succeed or fail, but above all it is a public service, those who practice it to make decisions and choices that can sometimes occur interests of its clients in the interests of the public.

to apply ethical standards of accounting creates opportunities for the treatment of facts and information, if it is used for error could cause a person to invest under false pretenses, or company to represent fraudulent financial shareholders. It is extremely important that the public can trust accountants and accounting for their financial future, and their family or business, could be at stake.

Why is it important that statutory auditors and audit firms to be ethical?

Over the years there have been some major accounting scandals in the US, and the world at large, which caused investors and public shareholders to lose billions of dollars, and giant corporations and accounting firms to break, due to falsified or erroneous information given out of company money was invested. The Enron scandal is perhaps the most recent and glaring example of unethical accounting causes many negative effects, including loss of $ 25 billion in assets shareholders closure Arthur Anderson accounting firm, and the subsequent loss of 85000 jobs unethical practices were reported and the company dissolved.

Ethical accounting is not only important to private companies or individuals for reliable information about the financial states, but has a responsibility to the public to provide a transparent assessment of the publicly held units. Ethical accounting can help eliminate serious difficulties when incomplete or incorrect information about the company or individual is distributed, saving money and jobs and helping to increase the stability of financial markets.


Small Business Ethics


ethics in business has become big news in recent years. We read about the escapades of executives at Enron, WorldCom and other major companies and shake our heads in amazement thinking, “How could it happen.” We marvel at the unethical behavior of these leaders, but at the same time never consider their own conduct.

The truth is that business leaders, regardless of the size of the company, faced moral pressure every day. The scope or effect of moral decision may not measure up to the likes of Enron, but nevertheless, they are. How business leaders of other minor ethical issues precedes how bigger decision will be made as the company grows.

Many of the ethical issues we may face are not clearly black or white. In fact, the two men facing the same issue could be quite possible to make unfavorable decisions, but believe they have each made the best ethical decision. Why? Because of ethical decisions are based on the moral character of people. When it comes to ethical behavior, with each march to the sound of different drummers and as such will make different decisions in similar cases.

As a business owner you must set the bar on ethical behavior. Make integrity core value, be honest with your customers and employees, always follow the rules, never compromise your principles, and remember that the right thing is not always the opposite of the wrong thing. Do this and your customers will respect you and your employees will be secure, the necessary ingredients for a successful business

To your success -.


Ethics in the banking and business


Ethics has been a common topic in the news recently, and ethical issues have been at the forefront of companies and banks for several years. Sometimes it may seem like the community has grown tired of this ongoing ethical issues, but it is still likely that more issues involving ethics mean that there is still more to learn from the events involving ethical questions. While banks do not have a monopoly on these matters, there are often higher built-in behavior expectations bankers who make ethical lapses of slightly more visible and controversial.

Whenever individuals are responsible for managing a large amount of money (the bankers are clearly), there may be a temptation to take advantage of the situation. In many cases, applicable laws and regulations that prescribe what is legal, and ethical guidelines are often less formal and rigid. In fact, this lack of specificity, it often leads to ethical problems in the first place. If a bank employee finds himself asking questions like the following, we should not be surprised if it says is later called teaching moment

  1. Should I tell anyone about this [19459006?]
  2. Is this really wrong?
  3. Can I get into trouble by doing this?
  4. Is this illegal or just unethical?

final hypothetical question (Is it illegal or just unethical?) Includes concerns the distinction made by some when facing a gray area that is apparently legal but still questionable. It is true that in some cases moral turpitude can also be viewed as illegal, but many unethical acts may be technically legal. Within many companies and banks, it is not unusual for there to be a protocol covering many cases by law but outside the company and the behavior of banks. Character quality are likely to affect how people act in any number of situations that are not spelled out in terms of what to do and what not to do. A proper definition comes from a recent scandal suggests that the character is what you do when no one is watching. It can be both good and bad morals, and one way to determine which is the dominant standard is to monitor what people do when they do not think that someone is looking over their shoulder.

There have been several events banking in the past 25 years that are usually described in terms of legal and moral turpitude of many individuals and banks. Such mass ethical lapses are a special category that deserve further analysis and introspection than can be provided here. One of the best studies of ethics and other details of the savings and loan banking crisis was written by William Black has the following title:

  • The Best Way to rob a bank is to own One: How corporate executives and politicians looted the S & L Industry

The savings and loan element involved many examples of bank employees take advantage of a weak regulatory environment, and the factors behind the 2008 banking crisis had some striking similarities . There are many moments of teaching that can hopefully help improve future ethics environment for companies and banks.


Business Ethics – Why are they important in the Small Business



Rarely is an individual who does not encounter ethical or moral problem at some point in the life of his or her company. Whether that person is the owner of a multinational corporation, a small business entrepreneur, or new or established employee, everyone is likely to have to face such examples end. As personal moral dilemmas, individual faces make a decision based on how it will affect not only himself, but how it will affect the organization as a whole. One of the main problems when dealing with ethical problems in business is that people are often swayed by corporate profits and legality of the decision.

The Institute of Business Ethics, which slogan is “doing business ethically makes for Better Business”, describes the term business ethics as such.

Business ethics is the application of ethical business behavior. It is applicable to all aspects of business, from government strategies and how companies with their suppliers to sales techniques and methods. Ethics goes beyond the legal requirements for companies and therefore discretionary. Business ethics applicable to the conduct of individuals and the implementation of the Agency as a whole. That’s how business is their business, how it behaves in nature.

as clear as this definition, it is certainly open to interpretation. Therefore, it must be understood that the application of ethics to all situations is entirely subjective.

can also understand the ethics and morality of any kind, applying a sense of fairness in the circumstances. Even with a sense of clarity applied to the use of business ethics, reaching just and moral decision can be a complex process for most individuals. The subject of business ethics has been a source of much debate in recent years as heads of major (and minor) companies are seen as less than ethical characters both in the way they do business and conduct them. However, one can say that any individual who does not practice ethics not personally be ethical if the opposite may not also be true. Ethics in general has a long history of applications. Centuries moral man define who he was as a person. However, as populations grew, the need for incorporating best business practices in the company was somehow less important because there was always another client around the corner and the owner of the company was rarely the focus of the community how he or she may have been in the past. Administration of the company took place in the background and hired a representative to deal with the fallout. Ethics depend on several factors, one of the most important is their culture. Again, as a business person of the past, culture ethics practices will largely depend on the value placed on them. Business ethics have unappealing conflict often be contrary to what is legal. Often it is the “right” is not necessarily what is legal, and the company must consider this conflict as moral judgments. While there are many in the business community who believe that the company has no capacity for morality if there is effective competition, the number of corporate whistleblowers suggest that there is still room for ethics in business.

Western societies place a high value on success. However, in business, there are often conflicts between ethical behavior and business success. This discrepancy is often multiplied for the small business owner. To compete with larger companies, it may be tempting to leave ethics just to make an adequate profit. In addition, the small business person is relatively independent in his decisions or its preparation; he or she does not have to answer to a large base of employees or company Board. It is also interesting to note that the small business leader has often his or her decisions affect a greater number of persons than the employee small business. For example, a small business owner may have his or her decision affect his or her customer base as well as the employee of his or her. The employee will likely find that the decision of his or her will only directly affect his or her immediate circle of colleagues. However, the pressure to succeed is both internal and external pressure and often leads individuals to make moral decisions that are based more on the pressure and their own moral judgment. As consumers grow wary of those they do business with, you must understand that it is just such wariness. Cynical American consumers have learned, often the hard way, that there is little room for business ethics. In a society where the customer used to be the king, the consumer has more often than not experience some unpleasant experience with companies both large and small.

Some experts argue that any focus on profitability is bound to test the limits ethically. They claim to assume the primary role of business is to serve its customer base in an ethical way is idealistic and the nature of the free economy dictates that ethics must take a back seat to increase profits. Although it is rarely aware of the intention of the company to harm the public interest, reality dictates that the company the ability to increase profits will determine success. Public companies experience increasing pressure in this field. It is difficult to draw investors business based on ethics. Investors are looking to their profitability and ethical performance does not equal dollars. There are economists who think that in any economy, competition, ethics impossible to sustain; the company can legally pass ethics with the excuse that unethical practices are the only way to make money.

Unlike large corporations, small business leader is in a unique position to shape the moral of his or her business. Small businesses have less employee police station when applying ethical policies than larger companies. It is important to understand that, similar ethical issues of large companies, although individual certainly knows the difference between right and wrong moral decision road, the choice to throw ethics to the wind is often done because unethical choice is profitable. This can, however, happen much less frequently in smaller organizations because the person or persons who are harmed by unethical decision and someone is always harmed, visible small business. Big business and their decision-making machines are often far away from individuals immoral and / or unethical decisions affect them. This can make the wrong decision much easier to make.

special for a small business owner in the formation of the ethics policy provides a great responsibility. A proactive business leader formulates a statement the organization values ​​the company’s employees are expected to embrace – at least while jobs in the service business. An organizational change ethics policy is a notice to employees, customers and society as a whole, the company is willing to conduct himself and her practice on moral ground. Such statements offer the respect of all parties in transactions with such parties. However, it is important that the small business owner does not make the same mistake that larger organizations often do; ethical policy to business development can not be contrary to the organization goals. It is unethical in itself to develop an ethical policy that an employee can not possibly follow and maintain their jobs. When faced with the decision between a moral decision and his and her job, the employee will almost always choose the job.

The policy must be in reasonable line with organizational objectives. It is equally important, and perhaps more so, the small business leader lead by example. Employees, especially in my organization, are less likely to behave ethically if they get indirect license no. The end result of such a practice is a small business owner can be sure that he or she is doing business in a way that inspires confidence in customers and employees of his or her. And since consumers have become very wary of doing business with the person they think they can not be trusted, small businesses can enjoy profits loyal customers. The small business owner has an advantage over larger companies in that it can elicit consumer confidence by applying ethical practices that give customers the feel of a normal business relationship rather than one where the consumer purchases based on need alone. There are many who believe that such activity is able to draw business away from large corporate party again in a customer-focused company format.


The Importance of Ethics and Social Responsibility in companies today is


Ethics and Social Responsibility are often elements of a company that many small businesses and startups easily seen. When you’re starting a business, so a lot of emphasis on product viability, strategy, management and profits, these things may seem like back-burner issues to consider. However, with the growing technology today, consumers are rapidly becoming more demanding than ever, and fast on all companies questionable practices. Corporate and business watchdogs are more active than ever, and the blogosphere has certainly made full-time to blow the whistle on some of the world’s leading companies.

The fact is that the damage done by unethical or questionable social practices can be very devastating to businesses of any size, and more and more companies today are taking ethical and social customs of responsibility in order to keep competition and follow the demands of society. One clear example of this can be seen in the recent discovery that child labor was being used in one of Apple production offshore facilities. Several companies have been unfair trade practices, unfair wages, poor working conditions and exploitation of child labor or sweat shops levied poor wages and working conditions in third world countries for women.

In addition, the impact of enterprises and production on the environment is more important than ever, and watchdogs as well as consumers seek to induce companies that exploit natural resources or make use of materials that have a tremendous impact on the environment or air quality. Adopting a comprehensive business strategy that deals with these issues and to be committed to providing a good product or service that consumers can trust is essential to the long-term success of any large company. Many business owners mistakenly believe that ethics is just not breaking any laws. However, the reality is that ethics is so much more than that, and involves having a set of moral standards in operations and a staff that is in the interest of all.

While good ethical practices in business are one of the biggest keys to the company’s success, social responsibility is another factor that is often overlooked as well. Businesses have an obligation to their communities as well, and philanthropy by businesses of any size is the key to staying in the good graces not only consumers, but also the cities and states where the company operates. Some business owners believe that the only benefit of charitable contributions is the end of the tax deduction that can help minimize tax liability. However, these tax rebates eliminated as a way to encourage companies to do more for the communities they are in. One of the biggest advantages of a company committed to social responsibility and corporate philanthropy is not only a better image, but also improved the local economy which is presented by companies that support it.


Why Good Business Ethics Make Good Business


Why Ethics in business are important

Ethics in business is not only common sense, but business sense as well, no matter if you are running a large company or a small home business from the garage.

Some raise hell when they get bad service or overcharged for the product. But the vast majority of people are too busy or too tired to make a scene or write a letter of complaint. The majority of customers just to quiet mental note of useless business that you have, and vow to never go back there, and they usually do not. These days of online shopping and delivery to your doorstep service, it is very easy to find another dealer.

So honesty and respect in fact, paid in the business, especially in the long term. Many hot shot Whiz kids have made their fortunes by ignoring part of business ethics and integrity, and this was one of the main factors in the latest recession we are now enduring. Bad ethics and dishonesty, greed and rudeness do not help business at all, and the business will collapse when customers all go elsewhere, or when Whiz Kid crookery be found out and punished.

It does not take a rocket scientist to work out these simple rules. So why not highly educated professionals and seasoned businessmen and entrepreneurs make the mistake of forgetting ethics? Mainly because it has the courage of your convictions and good moral base of individuals. Dishonesty is giving you money in the short term, as the history of the branch you’re sitting on gives you the timber in a short time. So it will always be tempting to those with weak morals along with financial pressure. In many cases the raw courage to be honest, but out of trouble for a company going through, it’s reputation grows, and a company with a good reputation are a successful company. Of course, you still need a good business plan and a hungry market, as well as ethics, to succeed. . But morality is vital to keep yourself

Business ethics that are important are:

1. charge the Customer a reasonable price. Do not be greedy.

2. Treat customers with respect, as he is better than you.

3. Do not want to sell customers a defective item or advice or something that is harmful or dangerous.

4. Always tell customers the truth.

5. Treat employees as you treat yourself, or better. Be kind and generous assistance.

6. Pay your suppliers instead.

Ethics do courage and hard work. But they are worth. And they are good business sense too.


Business Ethics In America


To fully understand the ethics and how they relate to the company, one must first define the basic aspects. Ethics can be broken down into three categories: social, organizational and individual. Companies are bound by ethics that provoke them to hold accountable for their actions her company bosses, management and stakeholders who desire to be financially from traditional and non-traditional economic activities. Organizational ethics involve common sense of pride and responsibility of employees, managers and companies. They are part of a business philosophy that is part of the company. Individual ethics entrusted our ideas of right and wrong, resulting from many different sources. Beliefs can often play a significant role in the moral way many people choose to follow.

What encourage companies to act ethically in business? What prevents companies from generating as much profit as possible, regardless of the moral consequences of their actions? The public, as well as business stakeholders have come to expect that the company will conduct business ethically and with the highest regard to social responsibility. When a company lacks these expectations, the result often involves punishment and adverse publicity. Companies that do business in an unethical manner at risk of harm not only its stakeholders, but also the public. Companies that operate ethically give a sense of trust and responsibility, both local and national communities; this type of trust can often contribute strong business alliances.

Ethics problems come in many forms for many different reasons while on business. Unfortunately, companies often unwittingly hire people that moral values ​​are less than responsible corporate citizen. These workers often put their own greed and selfishness ahead of the welfare and safety of others, simply for their own financial gain.


Ethics – Do They Really important today Business World



There is widespread belief in the world today, to get ahead in politics and business man can not have rules. Some have high moral fiber in your homes. They might even be pillars in the church. But when it comes to business, they are unrecognizable as the same people. I’ve had managers tell me, ethics not add to the bottom line. I’ve even been told to stop being naive, all compromise their ethics, ever.

There are many opportunities in business today where we will be in a position to make a choice. In business, as in life, there are many forks in the road. It may seem to be the fastest way to success, take the road to do something, we know in our hearts is not right.

I believe that particular road is built on sand. It may feel solid at first, but as fact, the road soon begins to disintegrate and performance is lost. In leadership, it is even more important to have principles. When we teach and lead people, they will do as we do, not as we say. We would quickly become a leader unprincipled people who will do anything unethical to succeed. This behavior, finally, opens companies to legal and regulator affairs. Most of all, disappointment and distrust customers. This is very evident in the activities of politics today. Who can we trust and believe in?

In business, reputation is everything. Not only will customers, finally, mistrust and avoid unethical business, but people talk. Word of mouth is a powerful thing. It can make or break a company. It is said that when someone is happy with the product or service they want, on average, say five others. If they are unhappy with the way they have been treated, they will say eleven to sixteen people. The eleven to sixteen people want, not just not do business with that company or person, they will tell others. It does not take long to ruin. Soon the company is gone.

We have to try to be right, our ethics, as well as service to our customers, 100% of the time. When you are the leader of the nation, these people are putting it on the line for your business and you every single day. They are arrogant, you know what is right and in their favor. We need to know from the beginning what is right and wrong. Our lives depend on it.


Business Ethics Summary


Ethics is one of the oldest subjects, the purpose of the study is ethical. The term ethics was introduced by Aristotle, who thinks the word ethics “helps to know what to do and what should be avoided”.

Modern ethics is first and foremost, the science that makes considering human relations, as well as to evaluate the behavior of people in terms of generally accepted norms. There are protocols, which includes a system of moral norms of human behavior, belonging to a particular social group. Entrepreneur should not only know ethical behavior standards, but also to guide them

There are so-called protocol, and in particular -. Business ethics, which includes standards of entrepreneurial behavior. Entrepreneurial activity is impossible without the many relationships with people; it is not designed to work alone.

What is the difference between business etiquette and ethics? Business ethics is primarily a negotiation with partners; ethics recordkeeping; using ethical methods of competition. Business ethics is considered to be the same for businessmen from different countries. Business Etiquette – are certain rules that apply to the work style, any communication between the company, the appearance of businessmen, order and manner to negotiate and so on

Business Etiquette formed under the influence of certain traditions and prevailing. historical heritage in the country. For those entrepreneurs who cooperate with foreign partners, is very good to have a national business etiquette cooperating party before the joint activities.

issues of business social responsibility, ethics, and environmental protection on the agenda of modern companies.Social responsible business ethics and environmental protection are equally important and urgent tasks of modern companies than profit organization or salaries of top managers, due to issues of corporate responsibility is able to provide the same effect on the company’s reputation and value, as well as standard indicators of economic growth.

“Social responsibility is a voluntary effort by the company to take various measures to meet the expectations of different interest groups … interest group can be owners, investors, employees, consumers, government, the community or society.” (Nos. org, 05/21/2009)

The days of our environment, for some companies the industry as the automotive industry, runs the new technology and innovation. And this is true even for General Motors Company. “As automotive manufacturer, environmental responsibility is crucial for GM. It is actively involved in the development of hydrogen fuel-cell powered vehicles that emit only clean water and offer twice the energy efficiency of conventional machines.” (Alex Blyth, 05/11/2003)

Without being considered a sign of economic strength, social responsibility has today in the form of corporate civil – way to create a stable and profitable business for all parties, a non aggressive way, less harmful to work around the community, a friendly way to communicate with the community. In this model, social responsibility is nothing but a modern and open way flexible management. Practices and social projects in question are more accessible and more attractive for small business.

Questions moves the ethical considerations of responsible professionalism and how power and authority should be utilized in service to the community and customers. Most jobs have internally adopted rules of procedure that colleagues profession obey, to prohibit the use of customers and support the overall profession. This is not only for the benefit of customers, but for the benefit of the members of the profession. For example, American companies can ask the engineer to manifest security project that is not safe. While one engineer may reject manifesting in the project on moral basis, companies may feel less painstaking engineer who will be willing to appear in the program for payouts, thus saving on transaction costs restyling. Disciplinary principles allow the profession to shape behavior and ensure that one meets this standard, by checking them from the professional body if they do not practice leader. This allows the professionals who work with psychopathic practice in cognition that they will not be counteracted commercial. of those who have less ethical problems. It also maintains public confidence in the profession, which means that the public will continue to seek their services.

One can show integrity at each step of the business sector, and comprising the veracity of statements CV people. It is common cognition that many amplify or their experience when they seek work. They can over-emphasize the role of the projects, their participation in certain industries or regions or acquaintance with various Information package. Interviewers can easily understand this foolishness, and it will have to face failure in the beginning by getting selected for a particular job. Activity-based interviewing is based on the assumption that past performance is a good revelator possible future performance. It uses elaborate questions about what he has done to stimulate people previous behavior. So start with new people, can demonstrate his / her ethical values ​​in the professional arena. In the professional arena, one should not take unethical methods, such as accepting bribes, trying to hurt sentiment associates or not respectful sub-ordinates.

Everyone is morally ambit. As a professional, one needs to make sure that a person has a solid cornerstone. If you can meet the ethical standards expected of him / her, one is powerful to inspire and motivate others and achieve career honors and awards

References :.

Behrman, Jack N. (1988) Essays on ethics in business and professions ;.

George, Richard T. de (1999), Business Ethics


The Ethics business


I’ve been hearing quite a bit lately about the company and moral beliefs and practice. Unfortunately, most companies do not do nearly enough to fully integrate ethics into their employees. A hour seminar, even if, in two years just will not do it anymore. You do not see ethics taught in secondary schools or universities anymore. You do not even need to see what kind of ethics presented on television (whether cable or main stream media does not even matter, unfortunately) of the film (if the film happens to be about the business, you can be almost certain it will be a number of unethical situations show, whether within the company or without). To avoid becoming one of those companies that are known for having a morally flawed, here are some very important ways to get ethics back into the business.

to make the best ethical staff group is to start before they are even engaged. Ethics must be strictly observed and asked the recruitment and interviewing process. Strict and specific, standards will have to demonstrate, follow, and insisted before the applicant becomes even position. It may seem time consuming at first, and probably will cost a little extra money, but having and promoting standards before hiring must avoid the problem, most likely legal in the future.

After you hire the person, and in all training and policy manuals given and shown to new and even established employees, be sure to inform and review with them any State or local law, business protocol and appropriate information policy governing the company. Such information may include, but is in no way limited to, whistle blower protection, nepotism, use or business equipment and automobiles, financial disclosure and gift giving and receiving. You would be amazed at the number of people who come into the situation with good intentions that turn bad, where ethical standards are not followed or even mentioned. And it would be worse if they follow the model of unfair and / or unethical mentor!

Do not quit talking about morals and ethical business decision after you hire them either. Perhaps the company newsletter can have a section on ethics in the industry or business. Working groups may also discuss ethical issues for both management and staff.

Finally, the training process, and also the performance of the annual review process, be sure to include moral and ethical evaluation of programs and processes.