Ethics, Accounting and Business Decisions

Ethics, Accounting and Business Decisions

In the article “Business and Accounting Ethics” written by Dr. K. T. Smith and Dr. L. Murphy Smith, the authors affirm the need for ethics and decision-making in accounting due to recent unfavorable business practices. They stress the importance of maintaining and implementing regulations for professional conduct for public and private accountants. In addition, they raised question, “What is my highest aspiration? The answer might be wealth, fame, knowledge, popularity, or integrity. Nevertheless, if integrity is secondary to any of the alternatives, it will be sacrificed in situations in which a choice must be made. Such situations will inevitably occur in every person's life.” (Smith, 2003)

In exploring the article, the author’s show how ethical behavior is the utmost important factor in maintaining professional conduct in the business environment; including accounting practices. According to the article, “The purpose of ethics in business is to direct business men and women to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services.” (Smith, 2003)

So what is ethics? “Ethics (from the Ancient Greek "ethikos", meaning, "arising from habit"), a major branch of philosophy, is the study of value or quality. It covers the analysis and employment of concepts such as right, wrong, good, evil, and responsibility.” (Wikipedia, 2006)

Ethics in accounting affect and relates to all positions in a business. These ethics guide us to make the right choices. The influence of decision-making can be based on a person’s principles, beliefs, life and culture. The people around us will influence our own method of decision-making in our daily existence in the organizations where we work.

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