| When working in the business world, it is a | | | | financials accurate, such as having an honest and |
| necessity to encompass moral ethics. Ethics is | | | | truthful reputation. Accountants must have |
| also especially important when working with | | | | strong moral values, or else there would be more |
| financial information. It is very difficult to trust | | | | fraudulent financials. It is hard to prove honesty |
| someone handling lots of money. Companies in | | | | to new people, especially to co-workers and new |
| the past have distorted their financial statements | | | | bosses. However, it is possible. Sincerely wanting |
| in order to look better to stockholders, without | | | | the company to do well and succeed is a key |
| thinking of the consequences that may follow if | | | | factor in helping to prove trustworthiness. |
| they get caught. If a company does not | | | | Arriving to work on time, getting projects |
| promote good ethical behavior within the | | | | completed, and having a good relationship with |
| organization, it is hard to trust the financial | | | | associates within the company are ways to prove |
| statements. | | | | to be a trustworthy person as well. |
| Auditors, or “independent third parties”, | | | | In addition to shareholders having confidence in |
| must be truthful and honest when auditing a | | | | the company, partners and suppliers need to be |
| company’s financial information. If honesty is | | | | able to trust the company. Personal relationships |
| not involved in the auditing process, it will be very | | | | are based upon trust, as are corporate |
| hard for a shareholder to trust the company. In | | | | relationships. Companies thrive on networking in |
| other words, if a company is caught altering their | | | | order to be successful. Employee performance |
| financial information, it is tremendously hard to | | | | also improves while working in an ethical |
| have confidence the business, therefore putting | | | | environment. If employee performance |
| the company in a bad situation. No one will want | | | | improves, the company will thrive, and as a result, |
| to buy their stocks anymore and many people will | | | | everyone wins. |
| lose their faith in the company. Most likely, the | | | | By making ethics mandatory within a company, |
| company will collapse and it will be that much | | | | success will be established. There is a chain |
| harder for people to put their trust into another | | | | reaction when ethical behavior occurs and when |
| company similar to the one that has collapsed. | | | | non-ethical behavior occurs. Non-ethical behavior |
| In order to prevent fraud in companies, it is a | | | | can scorn the company and create bad publicity. |
| great idea to let the accountants have vacation | | | | Shareholders and corporate partners will lose their |
| days lined up and have other accountants fill in for | | | | confidence in the company and give their support, |
| the job. This way, fraud will be detected before | | | | money, and business to a similar company. Being |
| any of the financial statements are sent out to | | | | non-ethical can lead to failure and the fall of the |
| the shareholders, and the employee creating the | | | | business. By being honest with the financials, |
| financials can be fired. Similarly, separation of | | | | shareholders can see the true potential the |
| duties also comes into play when dealing with | | | | company has and base their decisions off of |
| important financials. Just like allowing accountants | | | | honesty. Corporate partners can count on the |
| to take time off, there should be separation of | | | | company when making business decisions. This |
| responsibility within each department. For | | | | would prevent any bad publicity for the company |
| example, one employee can balance the books, | | | | and keep them out of negative spotlights. |
| and another employee can “audit” the | | | | The benefits of being ethical greatly outweigh |
| financials and make sure that everything is | | | | being non-ethical in business. There are plenty of |
| balanced and in the right place. This may | | | | reasons why being honest and truthful is the |
| become time consuming; however, it is essential | | | | better decision to make when creating financials |
| that the financials are accurate and completed | | | | for other businesspeople to see and use to make |
| with ethical precision. Most companies would | | | | conclusions. Although it can be said that ethics is |
| want to make sure that the financials are correct | | | | a given when working for a business, companies |
| and save the hassle of having ruined financials. | | | | should enforce being ethical and ultimately become |
| There are also personal reasons as to keep | | | | more successful because of it. |