Accounting Ethics and Impact on Business Performance Term Paper

Accounting ethics and Impact on Business Performance - Term Paper ExampleThis paper seeks to explain the relevance and need to embrace these ethical practices and their impact on the general business performance. Accounting ethics argon moral values that govern the profession of accounting. They can likewise be described as judgments that retain in course of undertaking accounting tasks (Saleemi, 2002). These ethics construct become accepted world-widely by government agencies and companies and help instill some degree of discipline both at organization level as well as employee level. Embracing these ethics cannot be ignored at this time of global economic crisis caused by malicious employees who collude with others and form cartels that have ripped off organizations and government resources leading to collar collapse or closure of once profit-making companies and organizations. Driven by the need to earn scratch, an organization should also strive to attend that sh arholde rs interests are met. These interests vary among individual shareholders and as such accounting ethics in an organization are prevailing in meeting these. It is with regard of its importance in controlling and observe the accounting profession that this paper concurs with adherence to accounting ethics. Accounting Ethics Lead to Better solicitude and Profitability in that respect are shareholders whose interest is in the capital gains from the company. Pandey (2003) states that if the motive behind investing in a company is driven on capital gains, then the shareholders are likely to have a keen interest in the dividend policy of the organization. Accounting ethics in this case would strive to ensure proper reporting of the accounting statement. Alternately, there are another group of stakeholders or investors who are largely concerned with a companys management style and hence would demand that accountants have the prerequisite skills to help them undertake their task in the most professional way. All government bodies and companies have determine ethical measures for the practice of this profession. These include competence, confidentiality, integrity, objectivity, timeliness, full disclosure, materiality and many others which are to look in the discussion. At the height of growing concerns of whether or not ethics play a role in companies management, the barter to ensure that all works well rests with the management. Everything progresses or fails due to the management and as such it is paramount to ensure that all ethical practices begin with them (Carbone, 2012). Business is not all about making profits but also how the company is perceived in the general business environment (Belkaoui, 1992). Most of the organizations are driven by the desire to retain their clients. This begins right from the way such clients are handled and their needs met. There are cases of companies that have embarked on this journey of adherence to accounting ethics and as such have reaped a lot of benefits over the years. Some of these are Safaricom Ltd, Sammer Group of Companies, Equity Bank, Kenolkobil, British American Tobacco, Oldmutual enthronement Services, Kestrel Investment Services, and British American Insurance (Garrison, 2009). Safaricom has been applauded for observing high standards of integrity in node relations. This extends from the way they respond to client complaints to the preparation of their accounting statements (Ferugson, 2007). The company has been the most profitable company in Eastern Africa for the past seven years maintaining the lead even in economic recessions as experienced since 2011(Kieso, 2009). Their