Week 1 Acc 380 Assignment

Running Head: ETHICS PAPER

Ethics paper

Archibald Shodeke

Meritus University

ACC/ 3380

Abstract

This paper defines business ethics and describes the role ethics plays in managerial accounting.

Ethics defined

According to Bateman & Snell, 2007, business ethics is defined as ‘the moral principles and standards that guide behaviour in the world of business.’ This definition suggests that companies and accounting professionals be guided by ethical principles when making business decisions. Ethics helps align business’ decision-making through the identification and application of rules that govern appropriate business conducts and choosing between what is morally right or wrong. In business ethical decisions would be guided by “individuals values or principles of conduct such as honesty, fairness, integrity, respect for all, and responsible citizenship”. (Bateman & Snell, 2007). Hence, ethical standards by professional bodies and government regulations help shape the ethical values and practices of organisations decision-makers, including managerial accountants thus impacting firms to behave ethically. For instance, how far would an organisation go in being transparent in its financial or business dealings would be a result of how ethical laws are applied and enforced.

The role of ethics in managerial accounting

Managerial accountants often confront issues relating to ethical standards. Ethics help to guide the conduct of managerial accountants in ensuring financial information are presented in a true and fair view, and are held accountable for their actions. Government regulations exert a strong impact in enhancing ethical business dealings and incorporating ethical standard programs required by companies. A number of legislations and legal restrictions help prevent abuse of power, protect the rights and responsibilities...