Running Head: Ethics in accounting and business

Ethics in accounting and business

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Business ethics is now a huge issue due to the monumental corporate scandals that result
in several countries yielding to external damages to the society as well as the economy. A

Ethics is always a big issue in accounting and business2

business scandal questions a businessperson or accountants morality. Accountants are the
primary cause of the deterioration of ethical business standards belief has always existed. A
research paper by the International Federation of Accountants concluded that financial scandals
witnessed within the recent years were signs of intense problems. Moreover, advised that ethical
standards improvement, reporting mechanisms, financial management adequacy, governance
emphasis, as well as the quality of the audit. As a way of bringing back the confidence of the
public in financial reports (Gaffikin, 2008). Accounting as a profession has some responsibility
concerning specific areas, where inadequacies have led to businesswise scandals and downfalls.
My perspective regarding the development of my personal ethics is that it depends on
several factors such as my upbringing.What my parents and those around me instilled in me
while young and how they handled issues. The other factor is the environment whereby despite
my beliefs, the environment I worked for forced me to do things that I considered ethically
wrong before due to pressure.Alternatively, laxity to give more emphasis on ethics, the last
aspect is my education, several fields have within them some courses that deal with ethical issues
within the environment. If I go through several courses in it, then it will be much easier for me to
abide by them when subjected to a job environment.
Every persons ethics gives fundamental beliefs or principles through which such a
person deliberately distinguishes after thinking or unconsiously through instinct, among morally
unacceptable and acceptable character according to the persons view. If idealy each persons
ethics developed from similar principles or from the same document such as religious material
for ethical components prevailing their own lives, and homogeneious international code
recognized globally, then it would be easier for people to agree with regard to what is ethically
wrong or right within any given scenario. As a matter of fact, every individual draws portions of
their business and personal ethics from close to unsystematic wide range of sources, such as
religious beliefs, childhood upbringing, life experiences, friends and coalleagues, family
discussions, and philosophical education classes. Personally I belief the factors highlighted
below contribute to ethics development:
Religious beliefs
Most global religions educated on related code of ethics which puts emphazies on respect
to those within us, honesty, sincerity and selflessness. Hence, within the business and personal
enviroments, religious persons are bound to behave in a manner that most people will deem
.highly ethical. Futhermore, these teachings can be expounded on to apply to a wide domain of
business processes. Moreover, for persons who are less religious, they will certainly behave in a
self centered manner that is normally questionable ethically.
Upbringing
It is undoubtedly through that each individual draws ethics from their parents and
guardians, whatever they teach through their actions as well as words. Most of these teachings
shape our perceptions regarding what is right and wrong. For instance, my dad is an insurance
agent who actually assisted many people in receiving their claims. Thus, from that I learnt to be
more honest and dedicated to dealing with issues of others.
Experiences in life

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Life changing occurences always directly shape someones ethics later in life. For
instance, a person who had a road accident may have many opinions regarding cases of dealing
with road accidents such as investigations, the legal system, and the insurance agencies. His
judgement of such scenarios depends on the experiences he or she underwent during a similar
occurrence such that he or she may be fair or quite unfair.
Engaging others
Often, without giving much thought, most humans talk about others making remarks on
whether they have been doing good things or bad. From such talk, at times very strong remarks
are made negatively or positively. As time goes by, we tend to live by these guidelines such that
we do noot do what most people belive it is wrong, unless we have strong reasons to share
divergent opinions. Through such talks the society sets some ethical rules which then become the
ethics of the society.
Code of ethics
Almost every field has a code of ethics which become our immidiate source of conduct
within our work places. As long as they have been acknowledged and integrated within business
procedures, it is belived that they were set with the objective of doing good to the business and
since every employeed adheres to them new employees automatically follow these guidelines. In
most cases, the code of ethics is just an emphazies of what has been learnt through earlier life for
instance, it will tend to stress on aspects of accountability and honesty which religious groups
and parents also advocated for over the years.
Definitely all these factors play some role in the development of ethics. The approach of
myparents, for instance, whereby I did what I was expected to do rather than being given the
chance to decide for myself. This trend led to me to try out the wrong choices till I finally
attained the age of 18 years in a bid to experience what the world had for me. Furthermore,
religion is another factor whereby since it has a firm guideline on how we should behave mostly
guided by teachings. We do not get an opportunity to experience why we are being told that some
things are wrong. After I grew up through several experiences I, therefore,learned that some
things were wrong and harmful to me and those around me hence doing what I considered right.
The world of business employs accounting professionals tasked with various critical
practices. The kind of work given to accountants for instance places them in a position that
demands trust concerning employers. Clients as well as the entire public who rely on their
professional guidance and judgment in making their decisions. Such decisions then impact on
theallocation of resources within the economy(Dellaportas, 2005). The economy relies on
accountants because their professions require of them to adhere to high ethical standards, hence
entrusted with public and clients confidence. From the above, business or accounting profession
connects to the adherence to high ethical standards. Thus, ethical competence is now an
important aspect of becoming a professional businessperson or accountant.

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References
Dellaportas, S. G. (2005). Ethics, Governance, and Accountability: a Professional Perspective.
Australia: John Wiley & Sons.
Gaffikin, M. (2008). Accounting Theory: Research, Regulation and Accounting Practice.
Australia: Pearson Education.