Effect of Unethical Behavior Article Analysis

386 Words2 Pages
Effect of Unethical Behavior Article Analysis Ethics is a concept that that has different meanings to different people. To some people, ethics has more to do with an individual’s moral make-up. While to others, ethics is abiding by the rules provided by a governing body. While ethics may have different meanings to individuals one thing remains the same. When unethical practices take place, many will find ways to rationalize the behavior to make it alright within their mind. In accounting, unethical behavior can range from fudging numbers to a complete scandal like the one with Bernie Madoff. The importance to reduce this behavior is paramount. Due to the fact that financial statements are what others use to gauge and examine a company, it is fitting that the government stepped in with the Sarbanes-Oxley Act of 2002. This law placed strict guidelines on accounting and also held executives accountable for the accounting actions of their companies. As stated before, unethical behavior in accounting can be something as small as adjusting numbers to make everything fit together. This is something that could happen with inexperienced or improperly trained accountants. Another scenario is information being purposely left out of financial statements in order to make a company look better. This may be done by an organization in order to make it more attractive to prospective investors or possible creditors. This could be one of the largest reasons for unethical behavior in accounting. As individuals may be pressured into doing this, it is important for those in higher positions to have the ethical standpoint of zero tolerance. With the establishment of SOX 2002, it is clear that the government will not tolerate unethical practices and behaviors in accounting. It is up to the business community to take the same stance on ethics. A National Business
Open Document