Society as a whole is responsible to conduct business ethically. Parallel to the formula that we use for inventing the laws that a society created to promote specific behaviors and actions that are appropriate to build trust and relationship, it is similar in corporations' behavior. According to Svensson & Woods "Society does have expectations of business and of its business leaders" (Svensson & Woods, 2008, p. 306). Ethical business behavior is a combination of values and normative ethics, which drive an organization. When analyzing Anglo-American and Primark for this case study.
The purpose of the AICPA Code of Professional Conduct includes responsibilities, the public interest, integrity, objectivity, independence, due care and scope and nature of services. Although all of these are important principles to adhere, I think that the three most important principles are integrity, the public interest and due care. As a CPA principle conduct, integrity distinguishes that public trust is served by being honest. Honesty is an ethical value which means we should express the truth as we know it without deception. Full disclosure supports transparency and the accounting professional should disclose all information that investors, owners, creditors, and the government need to know to make informed decisions.
The AICPA have several publication that helps with guiding the accounting profession and to enhance the member’s technical and professional abilities. One thing that the AICPA requires of their Accountants and CPAs is to continue with professional education, so that they will stay abreast of all current accounting and business issues. The AICPA is considered the foundation of ethical reasoning in accounting because each individual in the accounting profession whether they are certified or not has the obligation to be ethical with the public in business dealings and having access to financial information. All
Communication, behavior, and appearance are three are the crucial factors that make a great professional employee, as these are characteristics that can contribute to a company in its goals to be profitable. Most businesses, no matter the industry, sets certain guidelines to which its employees are expected to adhere to, these rules are usually explained in the employee handbook. Professionalism is essentially, the knowledge that an individual conveys about a certain field. At work, professionalism refers to a person doing his or her job with sincerity, and maintaining professional etiquette and ethics in the workplace. Companies specify which behaviors are acceptable, and which are not, when they first start the hiring process for a new employee.
As we are involved in an organizational setting, our main duty is to perform our work smoothly and perfectly. Most professions have internally enforced codes of practice that members of the profession must follow to prevent exploitation of the client and to preserve the integrity of the profession. This is not only for the benefit of the client but also for the benefit of those belonging to the profession. Disciplinary codes allow the profession to define a standard of conduct and ensure that individual practitioners meet this standard. Professional ethics or behavior whatever we call it can be defined through the bellow encompasses criteria.
McBride will need to ensure that changes are made, compliance is researched and built-in the strategic plan, and the shareholders will be satisfied with the new MFSI. Situation Analysis Issue and Opportunity Identification The first issue facing MFSI is the need to implement a strategic plan to ensure that the company is complying with all the corporate governance bylaws. MFSI has the opportunity to turn the company around and make sure that they are applying all regulations with honesty and integrity, thus letting their customers trust the way they conduct business. MFSI also faces the issue of a lack of ethical compliance. MFSI has the opportunity to attract more companies
Key Terms Character plays a vital role in an individual’s personal ethics. Character encompasses the moral actions based on duty-driven ethical principles. These include trustworthiness, respect, responsibility, fairness, caring and citizenship (Josephson Institute, 2009). Personal ethics will most certainly be the core ingredient in a person’s ability to success determines the ethical business behavior, which is “behavior that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society” (Trevino & Nelson, 2007, p. 19). In business there will be many times when an organization’s leadership will need to decide the culture and ethical dilemma procedures.
Foundation of ethical reasoning in accounting The AICPA is considered the foundation of ethical reasoning in accounting because its principles are a guide to members for how they are expected to perform their professional responsibilities. As an organization their aim is to instill in its membership according to ET Section 51- Preamble “The principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage (AICPA.org 2006-2014). The principles are simple and direct. The principles of the AICPA are responsibilities to the public interest, integrity, objectivity and independence (independence applies to CPAs in public practice), due care, and scope and nature of services--revised May 15, 2000 (AICPA.org, 2006-2014). These principles are exemplary ideals for the accounting profession in the performance of their professional responsibilities.
These principles are strictly set in place to “represent the expectations for CPAs on the part of the public in performance of professional services” (Mintz & Morris, 2011.). After reading chapter one from Ethical Reasoning: Implications for Accounting, the three most important principles are responsibilities, public interest, and integrity. Responsibilities According to Eber (2004) This principle states that members need to exercise sensitive professional and moral judgments in all their activities, are responsible for cooperating with each other to improve the art of accounting and should maintain the public's confidence and enhance the traditions of the accounting profession (The AICPA Code of Professional Conduct, Responsibilities). Responsibilities are first out of the six principals for the AICPA Code and the third most important principle. This principal is what helps guide professional members in performance and to honor public trust.
Writing a code of conduct, supporting it at top levels and communicating it to employees is just a start. Publicly commit to being an ethical organization - Corporations that are open about their ethical standards and conduct seem to be more trustworthy than those who stay silent. Separate auditing from consulting functions - Allowing Arthur Andersen to both audit and consult with Enron created at least an appearance of a conflict of interest. Talk with employees at all levels often – Failure to communicate causes far more pain than smashing your thumb with a hammer. Build ethical conduct into corporate systems - Define your position as an ethical business.