Ethics in Accounting

Introduction

Ethics in accounting and financial decision making is important in today's business world. Many organizations put emphasis on ethics and the financial decision making process with the organization and expect that auditors, managers and accountants will behave in an ethical manner. There are many factors that inspire organizations to assure and push ethical policies. In the last seven years, the world has witnessed stunning financial collapse in many companies that were ranked among the most admired in America. Companies like Enron and WorldCom, left an impact the way ethics is valued and viewed among companies. What went wrong? The question that arises is what form of ethics or education training did the involved auditors, accountants and managers receive? Ethics training and study for accountants, auditors, and managers must be enforced to help individuals make better financial decisions.

Summary

The public's perception of corporate ethics changed dramatically with the revelation of the unethical decision making at WorldCom and Enron. The scandals took a toll on consumers' confidence and portfolios, and undermined their faith in the accounting profession. Corporate stakeholders have called for more transparent financial reporting and evidence of better ethical conduct. SEC Chairman William H. Donaldson has said that restoring the public's confidence in the accounting profession was the Sarbanes-Oxley Act's (SOA) primary goal. Part of restoring the public's confidence entails auditors to adopt good practice. One example of good practice in decision making is the code of ethics in business. According to research article Corporate Transparency, Code of Ethics Disclosures, 2005, fortune 500 companies are making their codes of ethics readily available after the passage of SOA.

examines the responses by 97 large U.S. companies from the global Fortune 500 in making their codes of ethics readily available after the passage of SOA.

The impact on the organization could be loss of revenue, in case there is a strike that will include union workers. The relationship between unions and labor productivity has attracted considerable attention from scholars in industrial relations and economics. A number of employers have either used permanent replacements or stated their intention to use permanent replacements. Studies have found that some are divided approximately equally between positive and negative union-productivity effects. Organizations limits in a meta-analysis of the association between unions and productivity for the population. Employers cannot suggest to workers that they vote against the union while they are at home or in the employer's office. However employees can do so while in their work area or where union workers normally gather.

Changes in Employee Relations

The urge to unionize is often the belief that it is only through unity that employees can get their fair share of the pie and protect themselves from management. Some changes were union shop, security which the orgazation can hire non-union people but they must join the union after a prescribed period Agency shop,