Why Ethics Are Important in Business

Business Ethics

Sayed Akber Sabir

Chadron State College

High-Performance Leadership

04 March. 2016

Why Ethics are Important in Business  

 The persistent rise of high-profile corporate accounting scandals and restatements of previously issued financial results has generated intensified concerns for accounting ethics education. As with other professional disciplines, understanding and upholding ethics is very important in the accounting field. Small-business investors and leaders consistently rely on the ethical collection and delivery of financial information and are sometimes placed at risk if accounting ethics are not preserved. For any business owner, manager, or investor understanding the basics of accounting ethics and their function is the only way to avoid financial and legal dilemmas. Under the current economic conditions, when the economy of each country is boundary wall of the global economy, the importance attached to production cost information is constantly increasing. Firms must offer high-quality products on the market for low costs, in such a way as to ensure their future economic growth. The management accounting is the key provider of business information required for making decisions within an organization. In the relation to the management accounting, the law allows a broad freedom for the organization and presentation of the information, in contrast to the financial accounting. The independence provided by the law in ruling management accounting must be used as efficiently as possible by adapting the organization of the management accounting to the management information. The management accounting. For better practice management accounting established ethical principles and standards, the principles express the values, and standards guide the conduct.

Topics of ethics in management accounting are under consideration since last few decades, and it’s most critical to know the meaning of ethics and the importance of ethics in management accounting, and the basic principles of ethics.

What is Ethics?

Humans have always tried to better understand the environments around them, themselves and their role within it. Many tried to create new discipline concerned with all aspects of human action. This discipline is called ethics. While, ethics applies to all people, not everyone knows what it is and only a few really know what this word conceals. In spite of this fact, ethics is still used by those people who do not trust it could work. Ethics also defines the elements essential to human well-being and propose principles to be used as guidelines for generating an ethical culture. Ethics also refers to the specific standards, rules, and values, and agreements people adopt for conducting their lives. More broadly, ethics is the study of human behavior and its results in the light of what is preferably possible (Miller, W. F., & Becker, 2011).