Business Ethics

Business ethics

In any area of life there needs to be a set of ethics. It can be an individual's behavior or standard at any place they are at. It could be how they decide to handle business with others or how they manage a situation or in business itself. It is very important to have a set standard of business ethics for a company as a whole. Though with that said there needs to be set business ethics for each set areas in the company. One such area that has proved that is needed over and over is in the areas of finance and strategic financial planning, the examples could go on and on but the two biggest examples is Enron and Worldcom. There were a few major factors that led to them going under. Not only that but there where many specific ethical violations in what they were doing in regards to accounting as to why they failed and faced the charges they got.

Business ethics more often than not are guided by law while at other times it provides a basic guidelines or framework for business to follow. Business ethics is effectively the applied ethics that are applied in the business world. They are moral or ethical principles that could arise in events or day to day operations. One major area that ethics should come into fret play is in strategic financial management. One of the areas that got Enron in trouble is bad ethical practices in regards to finances and accounting practices. Strategic planning in regards to finance is identifying risks, forecasting economic trends and forecasting the future direction of the business. Business ethics will come into play by first accurately and honestly filing and reporting finances. It will or at least should play the role in leading managers to following the proper accounting practices as well as working to improve the financial situation of a company. It should play into working towards maximizing returns for shareholders while following accounting principals and filing correctly.

Both Enron and...