Professional Ethics, Essay Example

Introduction

Accounting ethics has drawn attention in recent years due to the exponential growth of negative ramification for not following the applied ethics and moral values set forth by the companies to protect shareholder’s integrity and wealth by following a set of ethical principles.  Furthermore not only are the companies in which collapsed due to unethical behavior but the accounting profession has suffered criticism and degradation in reputation.  To contest the increased adverse reaction with ethics violations various accounting and standards bodies established regulations in which companies and individuals must adhere to in order to conduct and execute an ethical business model.

Three professional entities have established ethical accounting principles that share similar characteristics.  The three entities are The American Institute of Certified Public Accountants (AICPA), Chartered Institute of Management Accountants (CIMA) and the Institute of Management Accountants (IMA).  All three have a common set of goals and objectives ultimately resulting in the overarching strategic intent of creating and enforcing accountants to ethical standards.  Upon reviewing the ethical standards and principles provided by each of the organizations they have common and parallel voices in the establishment, maintenance and accountability of the ethical standards.

Commonalities—Code of Conduct and Ethical Behavior

Each organization includes a written code of professional behavior that outlined the requirements of each participating member.  Each code of conduct establishes the foundation of ethical behavior within the accounting profession.  Each code states the professional principles that the members will follow including key characteristics such as competence in accounting, integrity, confidentiality as well as professional behavior.  Ethics is viewed by each organization as a whole person action and not just a case by case basis.  Although one infraction will lead to the appropriate ramification ethical behavior must be followed and embraced in all aspects of the professional demeanor.  Another common point between the organizations is the fact that not only are the ethical standards established but outlets or resources are available to help guide the member through a potentially negative ethical dilemma ensuring that the member maintains their integrity and due diligence in maintaining their ethical behavior.  Each member has an easily accessible written and approved code of conduct to afford the guidance when they need it most during an ethical quandary.

Commonalities—Enforcement and Accountability

In order to ensure the code of conduct for each organization carries the weight needed to ensure ethical compliance, organizational committees were established to author, interpret, update and enforce the ethics code of conduct.  This committee holds each member accountable for his or her actions regarding their ethical conduct and upholds the integrity of the accounting community.  Each committee has the responsibility to create, uphold, update and interpret all ethical codes.  They also review potential ethical violations and rule on their validity as well as the ruling and reprisal for the member committing the infraction.  The accountability of the standards in ethical behavior is fundamental because without it the entire structure would crumble on self-will and un-ethical choice without ramifications.

The main aspects of ethics in management accounting revolve around the ability to maintain integrity, objectivity, professional competence, confidence and professional behavior no matter the circumstances faced in the business environment.  The ethical code of conduct established by the governing organization, in which the accounting professional is a member, supersedes that of any other governing body within the corporation.  The guidelines of the corporation should allow that all situations imparting ethical behaviors should follow the code of conduct and each member should be able to fall back upon their respective code of conduct to justify and validate their actions or non-actions in each situation.

The corporate wing-to-wing approach to ethical behavior should be held as a core value among the members of the corporation allowing the code of conduct and ethical standards established by the outside entity which allows the segregation of the ethical model and those that would gain from varied interpretations of what is ethical or not so ethical while conduction accounting practices for profit.

As a junior management accountant, the ethical standards set forth by the ethics committees would be the beacon for judgment calls allowing ethical behavior to supersede individual interpretation and gray areas of elucidation.  Leadership in the local firm should establish guidelines established in unwavering terms that the standards and codes established by the governing bodies are not up for individual interpretation and those not in compliance with the aforementioned standards are subject to the corollary punishment in respect to the infraction committed.

In synopsis as a junior member establishing my career in an accounting firm my ethical judgments, if based upon the ethical standards set forth by the governing body or bodies, would be upheld and hold no negative ramifications but conversely afford the increase in respect and reputation among peers, leadership and the accounting community as a whole.

References

American institute of certified public accountants (CPA) Retrieved from www.aicpa.org

Chartered institute of management accountants (CIMA) Retrieved from www.cimaglobal.com

Institute of management accountants (IMA) Retrieved from www.imanet.org