Accounting Regulation in Corporate Governance will not necessarily lead to higher ethical standards.
In recent years, professional ethics has been placed at the top of discussion, and a lot of developments have been brought about within the corporate governance. Duska and Duska claim that accounting is an essential professional practice, and the current global economy has no existence without it (2011). These two authors also argue that ethics is now a part and parcel of corporate governance. Even our society expects more from the accounting professionals. However, a matter of concern comes to the discussion that some are more likely to prefer immoral means for their gain. Carroll and Buchholtz point out that several unscrupulous stockholders, creditors, and other parties related to the financial performance give enormous pressure to accounting professionals (2012). Consequently, business managers are in severe stress in maintaining ethical standards. Some human-resource professionals agreed that they have to compromise the code of ethical business conduct because of the oppression. And as a result, according to the opinion of Swanson and Fisher (2008), ethics and its importance in decision making have become significant. However, companies face various legal and economic punishments for unethical means, and expectations of higher ethical standards, and behaviors are increasing. Some organizations take ethical issues seriously and make corporate strategy for it. Jeffrey supports the corporate concern on ethics and adds that corporations are now considering ethical behavior as good business and not only doing the right thing (2011). And now, the growing concern is the performance of these ethical rules and regulations set by the organizations as well as the governments (McPhail, 2012). Some writers argue that, it is impossible for the regulations to maintain higher ethical standards without encouraging individual morality and virtue of the professionals. This essay is based on this argument whether accounting regulation in corporate governance only lead to higher ethical standards. Before going into the discussion of the role of rules and regulations on higher ethical standards, we need to know about what ethics is, what is business ethics, and what is the importance of business ethics in accounting professions in corporate governance? Authors are alike in defining ethics and business ethics. Rossouw (2009) put his view on the defintion of ethics like that, ethics is the study of right or wrong. Similarly, McPhail et al. define business ethics as it is a particular area of ethics, which include moral principles set by the organizations (2010). Every individual has to accept those principles. Business managers can use various kinds of ethical theories in accordance with their operations. On the other hand, some authors emphasize on virtue ethics rather than ethical standards. Carroll and Buchholtz (2012) are in those catagories who claim that virtue ethics is the most necessary for the accounting professionals as well as for the society. Virtue approach is a little troublesome for business organizations, as it emphasizes both ethical principles and society. Now, the importance of higher ethical standards can be described easily after the fresh introduction of business ethics. The importance of higher ethical standard cannot be ignored in today’s modern globalized corporate governance. Arjoon (2005) claim that ethics is, nowadays, an essential requirement for the success of the business. He emphasizes particularly on accounting individuals who are in need of it highly in every sphere in their professional life. Carroll and Buchholtz supports the argument and attach that, as accounting is related to financing and money, more corruption occurs in this field and to lessen or cut off corruption, accounting professionals have to be ethical (2012). Recent cases of accounting fraud also indicate that higher ethical standard is...
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