Ethics, particularly for accounting and financial professionals, plays a significant role in their daily professional operations and business associations. Ethics influences professional behaviour and has an impact on clients as well (Leonard 2018). Quality behaviour can provide positive role models and opportunities. However, unethical values promote dishonest and unrighteous behaviour toward client’s demands. Professionals need ethics to maintain public trust, be accountable and have a responsibility towards society.
Trust is key in the accounting industry which requires hard work and positive reviews to build. A good public image is built overtime but can be ruined overnight. This is very accurate in the audit and accountancy profession which is founded on integrity. Therefore lack of trust is a major disadvantage, especially due to mistrust in politically connected people in accounting profession it should be noted that trust does not just include honesty but also includes exercising right-minded morals. Trust is driven by transparency, consistency, goodwill and integrity. Transparency is useful to those that are influenced by the data to secure their interest. The lack of transparency in the accounting profession is regarded as unethical by their clients and other influential stakeholders, which will indirectly form public perceptions of the dependability of the professionals (Coka, November 2017). Present and possible investors are looking for improved evidence, bigger disclosure and transparent structures. It is essential to timely and consistent reporting of business and non-business related information.
Thus it is obligatory that stakeholders, investors, sponsors and the public are kept fully informed at all times (Amran, Crowther & Said 2014). Goodwill is the confidence that the client has in the professional. The accountant has built the clients confidence in themselves assuring the clients best interest in their mind. The higher the possibility of failure the harder it will be for the client to trust the accountant. Integrity and ethics are closely linked. It has been made mandatory for professional accountants to be unambiguous and sincere in business associations. Integrity also involves, honest dealings and genuineness (Coka, November 2017). Public trust for a professional demands transparency, attention to the client’s needs, prioritizing it over their personal benefits, and dealing with the client’s needs in an ethical manner.
Each individual is accountable for their own actions and the same applies to accounting and finance professionals. Despite the legitimacy, business engagements are judged as moral or immoral, ethical or unethical. The nature of business and accounting ethics is debated, there is no specified method of dealing with this problem. The government however, encourages organizational accountability for ethical and lawful conduct. (Onyebuchi 2011, p 275).
Certain unsaid rules may not be made mandatory legally but are followed as accounting and finance professionals may be held responsible and accountable for all business engagements performed by them. Accounting and finance has also been used to legalise the corporate and social values of business practises over other values such as honesty and ethics, and has been appointed to influence figures in support of major and wide-ranged frauds. (Abdaless et al. 2015). Just as there are legally mandatory rules, professionals need to follow them so as to not face legal procedures or to avoid legal action that may be taken against them or their organisation. It is best preferred for a professional to maintain ethical behaviour than face legal consequences or action taken against them by their organisation. Ethics are therefore necessary whether they are mandatory or simply professional morals as the professional is accountable and held responsible for all engagements undertaken by them.
Theodore Roosevelt, the 26th president of the United States, quoted 'To educate a person in mind and not in morals is to educate a menace to society.' A business that acts in an ethical manner as a member of the society will often find that the society offers its support in return, which can also be invaluable to the success of the company. This may be done by supporting with community events, contributing funds in support of society, or simply behaving truthfully in dealings with other business’s partners or competitors. Organizations that are dedicated to long term success be aware of and understand that creating an organizational culture where ethical behaviours are encouraged is the vital key to sustain a business in a near future. Ethical standards offer a basis on which a civilized society flourishes. The absence of this basis would cause civilisation to collapse. Individuals might choose aspirations such as prosperity, reputation, knowledge, popularity, or integrity. If integrity is inferior to any of the other choices, it will not be preferred in situations in which a choice must be made between the other alternatives. Such situations are inevitable and occur in every person’s life (Smith 2006). People usually think of fame and fortune when they evaluate success. However, at a stage in life, most individuals come to recognize that an inner calmness and soul-deep contentment does not come from fame and fortune, but living a life founded on integrity and honourable character.