Ethics : Ethics And The Law

1660 Words Sep 18th, 2015 7 Pages
1. ETHICS
Ethics refer to “the principles, standard and norms of conducts governing individual and firm behavior” (Peng & Meyer 2011, p82). These principles entail that both individual and firms are to take full accountability of their behaviors and to conform to established principles and values (Thorne, Ferrell & Ferell 2008, p167). This definition will probably raise the concern if there is any distinction between ethics and the law.
It is argued that to the degree that law mirrors a society’s minimum standard of conduct there is a significant overlap as to what is ethical and legal and as to what is unethical and illegal. There are subjects covered by the law however not related to ethics. For example the law set the left lane as the side to be driven on the road which is “keep left pass right”. Although this has been regulated to avoid havoc on the roads, the choice about which lane to be driven on is not an ethical decision as such. The prescription provided does not guide us. The ends of the law lead to the beginnings of business ethics. Nevertheless there is a grey area because what is legal may be perceived as unethical by key interest group (Peng & Meyer 2011, p82, Crane& Matten, 2010, p5-7).
1.1 The importance of ethics in financial statement
Financial statements display an official report of Omega Trading monetary activities. They report Omega Trading performance, financial strength, and liquidity. (Business dictionary, 2015; Accounting simplified, 2015). The…

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