Ethics Considerations in Financial Management
This analysis is to explain how ethics plays a role in financial decision-making. This analysis will explain how ethical considerations are involved in decision-making as pertains the article found on the Internet; will name the objectives of the organization, and describe how these objectives could influence the financial reporting decisions. Ethics and the Financial Decision-Making Process
Ethics plays a large role in financial decision-making. A company’s financial decisions can affect everyone from the top executives down through the general public. For businesses to effectively use ethics in their financial decision-making, the decision-makers are required to address their financial decisions with responsibility, objectivity, integrity, and professional practices (Think+Up, 2011). Ethical Considerations
In this article, the ethical considerations that are involved for financial decision-making are that the American Institute of Certified Public Accountants (AICPA) follows a professional ethics code of conduct. This code requires that all accountants use these codes in their business operations to guide them in the use of professional and ethical behavior. Also required by the AICPA is that all accountants are willing to make a pledge or commitment to use honorable behavior in their practices, even if this is at the expense of any personal benefits (Think+Up, 2011). Organizations Objectives
Accountants need to use a systematic financial decision-making process for evaluating outcomes and decision alternatives. This process includes 1) create constructive environments, 2) come up with reasonable alternative options, research these alternative options, finding the best decision-making option and verifying that decision. Next, an accountant or financial manager must communicate the decision and put it into play. The technical financial information and or forecasts for decision-makers are usually obtained from...
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