Business Ethics in Accounting and
Review of Enron and WorldCom
Dallas Baptist University
Accounting professionals need to know ways to recognize unethical issues, and how to handle these issues or problems. Employees need to be trained to know how to notice unethical actions, and what they should do to report or correct the unethical issue. Sarbanes-Oxley Act of 2002 was created a result of unethical actions by executives and auditors in several publicly owned corporations. There are national and state organizations to help accounting professions with ethical issues. These organizations help recognize unethical issues, and how to avoid being in unethical situations.
Business Ethics in Accounting
Accounting ethics is the study of the applied moral values and obligations as they apply to accounting (Merriam-Webster Online Dictionary, 2009). Professional ethics are the principles that govern individuals or groups. To reduce the likelihood of fraudulent or criminal conduct , accounting professions should have a “Code of Ethics” that they follow.
Every business’s Code of Ethics should focus on the customer, the employees, the communities, and the stockholders. The customer should be shown fairness and respect with quality products or services that are offered to them. Employees should be shown respect, and the work environment should foster teamwork. The company should look out for what is the best welfare of its employees. The company should do what is in the best interest for both the community and the environment. The stockholders should receive accurate and timely financial information. The decisions of the company should be in the best interest of the stockholders.
Accountants should have a strong ethical sense of values, and they should be committed to the welfare of other employees and their customers. Ethical leadership is very important in all companies, and it should be... [continues]
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