Review of Accounting Ethics

[Name of the Instructor]

Review of Accounting Ethics

Corporate Ethical Breach

Business ethics are referred as to ethical behaviors which an organization or all the organizations in the society needs to follow while running its operations. People involved in an organization need to follow ethics of business while conducting different activities. It is the ethical responsibility of the organization to give importance to the human nature, avoid conflicting activities and try not to create friction in the society. Recently BP Oil producing Company Director was arrested in Hungary due to breach of ethical code of conduct of running business activities. BP has been alleged for major environmental disasters in many parts of the world. It was the ethical responsibility of the company to conduct its operations in a way that it would have not harmed the people and the environment of the society. In recent times governments have enforced laws to protect the environment of a country and thus have made code of conducts for the organizations. So now it is the ethical responsibility of the organizations to conduct business activities that could not harm the environment of a country. Many times BP has been alleged for negligence and willful misconduct for the pollution it creates in sea of many countries. BP also did not follow the ethics of business that was disclosure of all the relevant information to its stakeholders. It misleads and misunderstood its stakeholders by presenting wrong information about the status of BP business in many parts of the world. Therefore a breach of ethical conduct has enforced BP to shut down its oil exploration activities in many parts of the world.

Accounting Ethical Breach

Recently BP also has been declared in serious financial crisis and has shut down its operations in many countries. The poor financial health of BP has raised many questions about the internal control of the organization. The company has been criticizing for breaching accounting ethics of breaching accounting ethics. There are many examples of Directors and CEOs of many organizations who have resigned due to breaching or violating the accounting ethics in an organization. It is important for organizations to follow GAAP (Generally Accepted Accounting Principles), IASB (International Accounting Standard Board) or FASB (Financial Reporting Standards Board) in order to maintain their books of accounts and financial statements. It is the responsibility of the international accounting standards board to ensure that the similar accounting principles ...