Accounting Ethical Breach



Accounting Ethical Breach

Introduction

The root cause of ethical issues in business is the contradictions in the interests of stakeholders. Business includes the economic relations between many groups of people that include customers, employees, shareholders, suppliers, competitors, governments and communities, the stakeholders. For the most effective management of a modern manager, he has to take into account all the interests, not only the interests of shareholders. Most interest groups put forward conflicting claims. For example, the contradiction of interests of the company and the consumer leads towards the ethical breach. The company seeks to maximize its favorable coverage of their product and attract customers in order to create benefits for themselves. The user wants to maximize an objective report on the consumer qualities of the goods.

It should be noted that not all problems have a moral dimension. For example, the question of whether to introduce a new product in Europe before the U.S. has no moral component. A question about the different quality criteria or different standards of transparency about the quality of the goods for the products of one company that is exported to the United States and the countries of the third world affects the moral norm. The accounting issues have always been quite important for most of the organizations. The reason is that no organization can afford to have any sort of accounting breach. These are serious issues and it needs a comprehensive strategy in order to reduce the probability of such cases. Therefore, all the issues related to corporate and accounting ethical breach will be discussed in detail.

Characteristics of Accounting Ethical Breach

Since the 1950s, the world has witnessed rapid globalization, the emergence of global cities, the proliferation of a transnational workforce, and the rise of powerful transnational corporations. This shift is particularly evident in Southeast Asia, where a long tradition of colonialism and transnational work has helped to define the "global cities" of the region. Although organizations compose people, and the directors have personal decisive importance in the ethical organizations. Corporate liabilities do not match individual corporate decision methods which differ from personal, principles and objectives. Sometimes organizations are above people and corporate values ??do not have to identify with the personal values ??of the members of the organization. In short, business ethics have components that differ greatly from individual ethics. When talking about business ethics, it has the institutionalization of mechanisms that many people refer to objectives, codes, formal documents, training programs, specific committees, advisory, decision documented procedures, management systems, etc. Both the grounds and the values, norms or principles that business ethics might propose will be directed to the organization and therefore have to take the form that makes sense and is effective in terms of organization. While individual ethics appeals to conscience or reason for each person, the ethics of organizations has to appeal to the organizational equivalents, which are processes that determine the decisions and behavior of organizations.

Individual ethics and organizational ethics cannot be separated sharply because after all, ...