In: Accounting
Ethics and accounting are two sides of a same coin. Given below are the different situations based on ethics and accounting. You are expected, to provide your opinion on the following situations:
a) Do you think in the absence of auditing; the business should follow ethics?
b) Does ethics has any impact on the financial performance of the business?
c) Do you agree that traditional business practices were more ethical than modern business?
please I WENT more explanation for each question
thank you
a. Yes in the absence of auditing the business should follow ethics.
Good ethics promote good businesses.They are the principles that govern and guide bussiness people to perform businesses function.
it continuously tests the rules abd moral standards. And also many ethical principles devolops personal dignity. the code of ethics in businesses usually helps /specifies methods for reporting violations ,disciplinary actions for violations ,structure of the due process to be followed and so on. But it varies among businesses.
if unethical behavior is not dealt properly it will threaten the entire social system.companies should be consistent while enforcing disciplines.they should not show any discrimination.
b.
Yes , ethics has an impact on the financial performance of a business.
The financial performance of the business depends on the moral and ethical behaviour of every employee in the businesses towards each other and to the customers also.
In finance, window dressing is clearly unethical and it misleads financial analysis of the company.
Also fradulent acts such as fake reimbursements, insider trading ,bribery, over billing of expenses, securities fraud leading to manipulation of financial analysis , facilitation payments etc are all affecting the ethical standards of the business which inturn has a great negative impact on the financial performance of the businesses.
c. No I don't agree that the traditional business practices were more ethical than modern business practices. whether it's modern business of traditional business the ethical standards and practices aimed at the same thing.. The ethical standards and practices varies from business to business. It depends upon a businesses value of setting ethics and following its standards.
whatever the business practices were or whenever the business practices were , I.e whether it was a traditional business or a modern business , every business aimed at promoting good to society ,improve its profitability ,foster its business relationship and to increase employee productivity..