Accounting Ethics – The Importance of Ethical Practices in Business and Personal Finance

What is ethical accounting? The idea of accounting ethics deals with the moral and values-based judgments and decisions an accountant or accounting agency confront daily in their practice. Due to the nature of their work as communicators of financial information to business managers, shareholders, and the general public, as well bookkeeping and auditing of business entities, accountants and accounting agencies are held to the highest standards of transparency and morality in regards to their research and the information they convey. Accounting can be used as a way to study how and why a business may succeed or fail, but above all it is a public service; those who practice it must make judgments and decisions that can sometimes supersede the interests of their clients in favor of the interests of the public at large.

Failure to apply ethical standards to accounting creates the opportunity for manipulation of facts and information that, if used to mislead, could cause a person to invest under false pretenses, or a business to represent its finances fraudulently to its shareholders. It is of the utmost importance that the public be able to trust accountants and accounting, because their financial future, and that of their family or business, could be at stake.

Why is it important that accountants and accounting firms be ethical?

Over the years there have been several large accounting scandals in the United States, and in the world at large, which caused private investors and public shareholders to lose billions of dollars, and giant businesses and accounting firms to fold, because of falsified or incorrect information given out about the companies in which the money was invested. The Enron scandal is perhaps the most recent and glaring example of unethical accounting causing widespread negative effects, including the loss of $25 billion in shareholder assets, the closure of the Arthur Anderson auditing firm, and the subsequent loss of 85000 jobs when the unethical practices were reported and the company dissolved.

Ethical accounting is not only important to private businesses or individuals for reliable information about their respective financial states, but has a responsibility to the public to provide transparent evaluations of publicly held business entities. Ethical accounting can help eliminate the serious problems raised when incomplete or incorrect information about business or individual is disseminated, saving money and jobs and helping to increase stability in financial markets.

Salsa Dancing Ethics And Personal Hygiene On The Dance Floor

For anyone looking to get into the exercise, the below information should be kept in mind.

1. Before getting out onto the dance floor, it is important to think about how one smells; this is something to think about because other people will be within close proximity. If somebody in the group smells like as if he or she had not taken a bath in a week, the mood could easily be spoiled. Therefore, taking a bath or shower is something that should be done. If a person suffers from a sweating problem, he or she should consider trying out a deodorant that will fix it. Seeing a reputable doctor is also a good way to seek help.

2. Part of being a good salsa dancer also means taking health into consideration. Deciding to have a smoke break in the middle of the dance floor is not only rude, but damaging to anybody who happens to be nearby. In addition, drinking alcoholic beverages during the course of a dance or lesson should also be avoided. A drunken dancer can only mess things up for others, causing tension, discomfort and even animosity. The person in question may even fall down and get injured.

3. Dancing is never easy when there is somebody else on the floor getting in the way. If the person is not dancing, he or she should not stand in the middle of the dance floor. No matter who he or she might be, this individual does not own that space, and thus it is not for him or her to take up the entire area. Staying off the floor when not salsa dancing will free up needed room, and nobody will bump into one another.

4. When it comes to Salsa dancing ETHICS AND PERSONAL HYGIENE on the dance floor, it is important to get permission from a person before making him or her a dance partner. Nobody wants to be forced to do something he or she does not like or the person is not prepared for. To initiate, a dance without asking the other person first would show a great disrespect. Instead, if there is somebody, the person would like to dance with; one should approach the hopeful dance partner politely, asking nicely if the individual would like to go on the dance floor. It is believed the best way to go about it.

5. If coming to a salsa dancing class, one should be on time. Some people may show up a few minutes after the lesson starts, others may come around an hour later. This can cause a disruption to the flow of learning, and the other students may resent the person who came late. The instructor will not appreciate the need to talk to the student about what she or he has missed. It may help to carry a watch at all times, and if the class is early in the morning, one can set an alarm clock.

Salsa dancing is something that those who enjoy trying new things should consider. It helps keep in shape; for obvious reasons – the human body will be moving a lot. Hence, calories burning will take place. Something brand new will be definitely learned. The benefits of salsa dancing also come, with practicing good hygiene and fine manners; not only does it benefit the specific person, but also those who are around, as a result. There is nothing wrong with self-improvement, especially when it comes to the body and the mind.

Understanding Group and Personal Ethics – Nu Leadership Series

Men cease to interest us when we find their limitations. The sin is limitations. As soon as you once come up to a man’s limitations, it is all over with him.

Emerson

In today’s society, personal and group ethics shape the value formation in organizations. Ethics and organizational culture can impact the success of an organization in the following ways: (a) group cultures influence ethical behavior more than the sum of their individual ethics, (b) ethic reasoning is a logical sequence where policies come last, making policies the result of ethical reasoning, not a substitute for it, and (c) ethics and culture gaps can only be reduced by preventing their root causes at the beginning of the process. Ethics in organizations are influenced more by the group ethics system (culture) than by the sum of the individual personal ethics systems.

Ethic plays a critical role in leadership. Ethics is defined as the code of moral principles that governs the behavior of a person/group to what is right. People will not respect a leader low in integrity. A leader can’t trick them with promotions or bribe them with money. In the long run, character does count in an effective organization. Draft, an organization management expert, explains that leaders at the highest management levels develop internal moral standards that can often allow them to break laws if necessary.

A leader’s unethical conduct brings about his own demise and shame of his organization. Therefore, it can be shown that effective leaders must have accountability mechanisms in place so that they won’t hit any ethical mine fields. Can you imagine what happens in an organization without accountability?

Each individual brings their own personal beliefs into the workplace. Leaders are not the exception. An individuals family background, traditions, spiritual values, and experiences impact how the make moral decisions. At the medium development point, individuals learn to conform to the expectations of moral behavior defined by their peers and society. Most leaders at this junction are willing to following laws and society expectations.

However, the highest levels of value formation are individuals who develop their own internal set of standards. Therefore, these individuals develop their own ethical principles that become more important in their decision-making than any external expectations. This high arching principle allows them to make unethical decisions, such as break laws or compromise organizational values, because it allows them to sustain their moral principles internally. Obviously, values will continue to play a critical role in organizational development in the future.

References:

CNN (2005). Reid: White House owes an explanation. Received on October 31, 2005 from http://www.cnn.com/2005/POLITICS/10/30/leak.probe/index.html.

Ciulla, J.B. (1998). Ethics: The Heart of Leadership. Westport, CT: Praeger.

Draft, R. (1995). Organization Theory & Design. Congress gets low ratings on ethics, honesty.

Harris, J. (April 12, 2005). In recent scandals, a rethinking of capital’s conventional wisdom. Washington Post.

Heuser, B. (2005). The Ethics of Social Cohesion. Peabody Journal of Education. 80(4), pp.8-15.

Kern, C. (2003). Creating and Sustaining an Ethical Workplace Culture, Pepperdine University.

King, S. (2006). The Moral Manager. Public Integrity. 8(2), pp.113-133.

Lester, W. (2005). Associated Press. Congress gets low ratings on ethics, honesty.

Nelson, M. (1994). Why Americans hate Politics and Politicians. Virginia Quarterly Review. 70(4), p.636, 18p.

Yukl, G. (2002). Leadership in Organizations. Delhi, India: Pearson Education, Inc.

© 2006 by Daryl D. Green