Role Of Corporate Ethics On Financial Performance

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Abstract. The article reviewed was The Role of Corporate Value Clusters in Ethics, Social Responsibility, and Performance: A Study of Financial Professionals and Implications for the Financial Meltdown. The key of the abstract is to demonstrate the influence of corporate ethics on financial performance. The financial meltdown negatively influenced top management mindset regarding professional ethics (p. 15).
Introduction. The authors study 2008 collapse of financial system to analyze the link between organizational values, social responsibility, and financial performance. Accounting and legal professionals argue that the current law and provisions are lack of ethics regulations. Experts state unethical financial decisions, inadequate disclosure, corrupted work of auditors contributed to economic breakdowns. The researchers see the necessity of building the sophisticated model of behavioral pattern of accounting and financial professionals, company management, and external auditors (pp. 15-16). The main objective of research is to determine key elements of ethical thinking of executives and accountants that consciously put the financial system in catastrophic situation. The study discusses cause-effect relationships between the ethical attitude and professional responsibility. The study is important because it investigates motivational objectives of accounting professionals, values of professional judgment, and actions that fail responsibility, integrity, and objectivity.
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