Abstract The following paper examines the intersection between ethicalaccounting practices and good business. More specifically, the paper looks at how good accounting practices can bolster the professional standing and operation of a family-owned funeral and why it is that, morally and practically, scrupulously honest accounting practices are essential to the long-term viability of any family operation.
From the Paper "Few businesses depend more upon the goodwill of ordinary citizens than do funeral homes - especially family-owned funeral homes. Much of this, of course, is because the death of a loved one is such an intensely painful experience for all concerned and people want to know that those to whom they entrust the responsibility of preparing their loved one for the hereafter are scrupulously honest and compassionate. This paper will address the issue of trustworthiness by examining an article on accounting ethics and then applying the lessons learned from that article to a generic model of a family-owned funeral home. The paper will then make recommendations for improving a typical funeral home operation based on the ideas set forth in the article. "
Abstract The paper identifies and evaluates the key components of ethicalaccounting practices in the modern world, where there is a strong tendency to succumb to external influences in favor of personal gain. The paper explains that it is no longer that GAAP is the supreme code for accounting practices, rather there must be strong moral and ethical foundations that should be created at the academic level.
From the Paper "In today's society, the accounting profession has experienced numerous challenges in an attempt to act in ethical ways with regards to accounting principles and business records. Generally Accepted Accounting Principles (GAAP) serve as a key reminder that businesses must act responsibly in their accounting activities at all stages, regardless of the potential that exists for personal gain and success. The following discussion will evaluate the importance of GAAP and accounting ethics in the context of modern organizations, where the temptation to act in a selfish manner is greater than ever. GAAP were designed to encourage a truthful representation of financial statements, based upon all business transactions conducted within specific periods (Shafer, Ketchand, & Morris, 2004)."
Abstract It is occasionally heard that good business ethics leads to good business period. Some people may dispute this old maxim for a number of reasons, but there is no question that integrity in business is an excellent way of fostering professional relationships, of building a loyal client base and of preserving a hard-earned business reputation. Suffice it to say transparency in financial and or managerial accounting is very important for all of those reasons, but it is also important because it protects other innocents for the most part who would otherwise suffer needlessly because of the dishonesty of a few. This paper points out the value in practicing good ethics in business, citing improved professional relationships, greater customer loyalty and protection of the innocent as the main reasons.
Abstract There is no profession more profoundly impacted by the effects of ethical standards that the accounting profession. This paper examines how the effects of ethical and unethical behavior on independence and daily functioning are implicit in everything an individual in the accounting profession does. It also looks at how, due to recent scandals, there is a need for attention to ethical standards and training within the field of accounting.
Outline
Introduction
Analysis of Ethics in Accounting Conclusions/Analysis
From the Paper "Accountants in particular face many ethical dilemmas during the course of their career, and example of which is the client who threatens to seek a new auditor unless offered 'perks.' Accountants and other professionals within the accounting field are often in a position that allows a great deal of autonomy and independence, which also opens the door for increased temptation and the potential for unethical behavior. Accountants may act unethically for a variety of reasons, though as the text suggests many do so for personal benefit only or selfish reasons, which by nature is a product of natural human tendencies. "
Abstract This paper explains that due to their high degree of influence, accounting professionals must adhere to a strict code of ethics. The paper then compares the fields of managerial and financial accounting. The paper also reviews the code of ethics established by the Institute of Managerial Accounting, which defines accountingethics in terms of competence, confidentiality, integrity and objectivity, and the 2003 Sarbanes-Oxley law.
From the Paper "In contrast, the primary audience of managerial accountants is internal managers and decision makers. The viewpoint is forward-looking. Financial reports may differ wildly in terms of content and format, based on purpose. Managerial accountant may report on wide-ranging subjects such as costing, performance measures, opportunity costs and the like. As the audience has access to internal accounting information, the outputs of managerial accountants may include a great deal of non-financial information. "
Abstract This paper discusses ethical financial reporting and what organizations are involved in monitoring and regulating financial statements of public companies. This paper reports that in the United States, these rules are called Generally Accepted Accounting Principles (GAAP). Although they are not laws, the Securities and Exchange Commission requires public companies to follow them. The Financial Accounting Standards Board is the most important organization in setting Generally Accepted Accounting Principles. Although not part of GAAP, Statements of Financial Accounting Concepts provide the basis for Statements of Financial Accountant Standards, which are the most important GAAP-establishing publications.
From the Paper "The framework for corporate financial management has changed significantly over the past few decades as more corporations move away from a checks and balances systems towards more of a juggling act. Recent ethical scandals including the Bre-X, Enron, and Worldcom debacles, has translated into increased scrutiny of corporate financial reporting. Some financial analysts argue that a company's ethical standards affects profitability, and those businesses that demonstrate unethical behaviour will suffer from decreased market share and profit potential, as well as increased government regulation. Increased competition between businesses has forced corporate finance managers to juggle more than one set of balance sheets depending on whether the reporting is going to the Internal Revenue Service (IRS) or shareholders."
Abstract The writer provides critical reviews of published literature on the topic of corporate accountability and includes discussions on several aspects of accountability. The topics discussed are corporate ethics, managerial performance and using the performance reviews for accountability purposes as well as individual worker ethics and accountability. The paper shows how accountability at all levels of business can be a key factor in success or failure.
From the Paper "Within the last decades several studies have been conducted regarding the importance of ethics in business at the corporate and executive level. One such study was published by Harvard University's Graduate School of Business, written by Lynn Sharp Pain and explored the need for managing an organization's integrity(Paine, 1994). Paine believes that managers often think ethics are a question of personal scruples that is confidential between them and their conscious."
Abstract The paper explains that the essence of corporate ethical responsibility is the embracing of strategies that are transparent, easily accounted for and free from conflicts of interest. The paper explains how this was lacking in many corporations who found that through sophisticated trading and fund management, fake financial results could be created to give the illusion of greater profits, growth and earning potential. The paper discusses how the US Congress felt it necessary to legislate corporate responsibility and ethics in the form of laws. The paper details the Sarbanes-Oxley (SOX) legislation and relates that these laws are forcing companies to comply with legislation that will guarantee fiscal accountability and corporate responsibility for ethical behavior.
Outline:
Defining Ethical Responsibility
Enforcing Corporate Responsibility
Sarbanes-Oxley is Redefining Corporate Ethics and Responsibility
From the Paper "The Sarbanes-Oxley (SOX) legislation promises to be just the beginning of a tidal wave of compliance legislation that will influence organizations and their strategies to attain corporate responsibility for years to come. CEOs specifically are at the center of many of the compliance efforts, as they will be held personally responsible for any aberrations in reporting and financial data. The fact that many publicly-held companies are contending with as the revised deadline approaches for Section 404 compliance and are still not ready shows that even with legislation, corporate responsibility takes a strong commitment from C-level executives to become real in a company."
Abstract A review of ?Ethics in Accounting? by Ireen Baset and how it addresses the contemporary ethical issues related to the accounting and financial decision-making process. Examines how the article treats the challenge, faced by employers, managers, administrators and employees alike, of adequately incorporating ethical values into the daily work schedule.
From the Paper "On the same account, a real estate company where the entire corporate dealings depend upon the efficiency and the sense of morality of the accountants must make relentless efforts to effectively communicate corporate ethics. This can be best done through the planning and implementation as well as the continuous maintenance of a sound and a pragmatic internal ethical program, that is putting down ethical rules in black and white for the organizational staff, employees and the first-line supervisors."
Abstract This paper answers ten questions on ethics in accounting and business It considers some of the duties owed to clients, some of the ways ethics can be breached, some of the rules that pertain, and many of the company policies governing behavior, such as policies on fraternization or on the monitoring of employees, as well as ethical issues raised by these policies.
From the Paper "Accountants face a number of ethical issues in the course of their work. The basics of accounting ethics are governed by the Certified Public Accountants are governed by the AICPA code of professional conduct and then by requirements imposed by the Securities and Exchange Commission and State Boards of Accountancy. Independence is necessary, meaning that the accountant must be separate from the companies he or she does the books for so that he or she has no financial involvement with these companies and will not be influenced as to how to report based on possible financial benefits."
Abstract In this article, the writer notes that the recent advancement of technology and the globalization and expansion of law firms have made it necessary for attorneys and staff members to be more aware of how accounting affects the operation and management of the firm. The writer discusses that when partners, associates and staff members are supplied with varying degrees of financial information and have a comprehension of the basic economic concepts utilized in making financial decisions, the firm can make gains in employee and attorney satisfaction and productivity. Understanding structural and strategic developments within the firm, as well as the ethical issues that can arise, can help managers and accountants to better plan for the firm's financial future. The writer concludes that attorneys that take the time to improve their accounting skills will benefit greatly in understanding the financial documents and reports of their firms.
Outline:
Financial Trends
Choice of Entity
Key Performance Indicators
Measuring Profitability
Increasing Profitability
Changes in the Industry
Ethical Considerations
Conclusion
From the Paper "This indicator is very valuable when tracking a firm's performance, as it is used to calculate net income. For example, an attorney may work forty hours in one week, but only have thirty billable hours; the difference being the attorney's gross production for the week.
"Since partners and managers often spend a lot of time performing administrative and human resource related tasks, many firms allow these individuals to set their own billable requirements. Similarly, for associate attorneys, the most recent trend is performance based compensation, also known as benchmark compensation, a method which also considers non-billable time, write-offs and rate of collection, rather than strictly focusing on billable hours."
Abstract The ethical side of business practices has become a hot topic within the last few years. The business world of accounting has always addressed the rights and wrongs of the industry, but only currently has been held responsible. The paper shows that white collar crime is on the rise and the recent events of the Enron scandal, the state of disarray of the accounting firm of Author Anderson and the Martha Stewart stock trades have left the American consumer wondering how the business world views and enforces ethical issues. The paper examines the views of philosophers such as Plato and Socrates whose principles of virtue have been proposed as the highest good - virtues such as happiness or pleasure, duty, virtue or obligation.
From the Paper "Those working within the career of accounting should acknowledge the moral distinctions of right and wrong when keeping books, conducing audits, and managing accounts of any size firm. Accountants are to be dependable and trustworthy to all stockholders and consumers of America. If any of these trusts are broken, then not only has the firm suffered, but the nation as well."
Abstract This paper discusses the two unique sub-functions within the accounting field: managerial accounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed. Further consideration is given to the ethical implications involved with each accounting division. Enron is mentioned as a prime example of how ethical considerations can not only undermine the financial solvency of a company but, ultimately, can cause its demise.
From the Paper "The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. Though there are many functions that overlap within these two divisions of the same profession, each classification serves a uniquely strategic function. In general, financial accounting is responsible for the historical financial records and data of a company and is largely responsible for ensuring legal and regulatory compliance. Managerial accounting is responsible for providing interpretive reports of financial accounts which managers and executives use to make operational decisions and devise corporate strategy. "
Abstract This paper discusses from an ethical perspective issues of accounting fraud, whistle blowing, sexual harassment, workplace privacy and duties to employees. The author explores the ethical responsibility of businesses to their stockholders, vendors and stakeholders. The paper examines ethical dilemmas.
From the Paper "There are many aspects of business ethics, including the company's obligation to its employees and to its stockholder workers, duties to their employer and the organization's duties to workers customers, vendors, stockholders and stakeholders. Business ethics is difficult to define or describe. Business ethics includes concepts including honesty, trustworthiness, respect for others, accepting responsibility for the actions of the company and its employees and respect for the rights of others. According to Diane Dixon, writing in "Executive Excellence", one recent study on why ... percent of all managers ..."
Tags:ethics, right and wrong, business ethics, whistle blowing, sexual harassment, workplace privacy, duties to employees, stockholders, vendors, stakeholders, ethical dilemmas, accounting fraud.
Abstract The paper examines the ethical issues surrounding eBay's financial reporting practices and how eBay's practices are affected by the current accounting procedure for stock options. The paper also explores what a conversion to the fair value method implies for eBay and its stakeholders. The paper then provides two specific examples related to the effects on financial statements and examines footnote disclosure from an ethical perspective. The paper concludes that eBay should change the accounting for stock options, even though it is not mandated.
From the Paper "It is argued that the triangulation of the accounting concepts surrounding stock options for eBay employees does not absolve the ethical consideration and obligation to include the earnings of the company that is affected by actions that have an intrinsic value to the firm (Baviera & Walther, 2005, p. 2). Even the FASB is currently trying to get companies like eBay to expense stock options in wake of the fact that it adds a significant value to executive compensation and the fact that employees can sell these shares for cash implies that they should be expensed rather than treated as a footnote (Baviera & Walther, 2005, p. 3).Overall eBay's stock options are not 'value-less' and should impact expenses, the issue is what value should be used? "
