A business is a member of the community and there are roles expected of that business in the community. If top executives and top executive management say one thing but do another, the message of ethical behavior gets very confusing. It is important that all the people in the company believe that is critical that all its employees act at all times in an honest and ethical manner in connection with their service to the company.
The code of ethics is a major responsibility for an organization. However, regulation is no longer a guarantee of ethical behavior. Accounting ethics can be defined as a set of distinct guidelines for a business to maintain clean balance sheets, accounting for their profits, losses and expenses incurred, and prevent it from mishandling financial reports and statements.
Over time unethical behavior continues to increase from 23% in 1941 to 70% in 2005. It is deemed as a way of giving back to the society and the customers will definitely see that they are perceived as valuable people by the company. Examples of unethical behavior abound in business stories around the world.
The unique position that the small business owner is in regarding the formation of an ethics policy yields a great responsibility. Ethical businesses treat both customers and employees with respect and fairness. Ethics are thought of by many people as something that is related to the private side of life and not to the business side.
The clearer the company’s plan for growth, stability, profits and service, the stronger its commitment to ethical business practices. In business and in our everyday life, Courage is rarely impulsive but results from self-conditioning – a history of calculated bold moves based on firm convictions.