Ethical Issues Of The Managerial Accounting Profession

1186 WordsFeb 4, 20155 Pages
Introduction In today 's high-rise development markets, there are millions of transactions that have been done every second by millions of employees. These transactions are domestically and globally executed, and due to its complexity in today 's business world it may generates sort of excesses that can negatively affect the business environment as well as the social life. Therefore, it becomes necessary to stress on the ethics and morals that should be prevalent in the business community. The term "ethics" in the business environment expresses the expected attitude of the individuals in organizations that carry out certain activities and services. Clearly, today’s business environment has obvious ethical issues that not only affect firms…show more content…
Managerial Accounting nature The management accounting is an effective and important provider for business information that helps the management to make decisions relating to business activities and investment decisions. Managerial accountants play a crucial role in advising managers about the financial implications of projects; and run some analysis such as cost benefit analysis, sensitivity analysis. At the same time managerial accounting streamline the management by explain the financial consequences of business decisions. It plays a crucial role in formulate business strategy to assist the higher management to build the strategic goals and strategic plan. Managerial accountants always monitor spending and financial control as well as conduct internal business audits. The management accounting is a control tool used for various internal business processes of the enterprise, consequently becoming essential in any manager’s daily processes and operations. Business Ethics Ethics was defined by Nelson and Trevino (2005) as ‘‘a set of moral principles or values’’ a definition that depicts ethics as highly personal and relative. Every individual has his own moral principles and neither of them should try to impose their ethics on the other. But proposed definition of ethics ‘‘the principles, norms, and standards of conduct governing an individual or group’’ focuses on conduct. Employers are expected to establish guidelines for work-related conduct, including what
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