The Role Of Ethics In Business

It is a well-known fact that During the financial scandals of the early 2000s, stockholders, creditors and other investors lost billions of dollars (Warren, Reeve & Duchac 2011); as numerous companies were caught in operation(p) their businesses with un h adeptst and double-tongued story and business practices. Ethical accounting practices in businesses be paramount to providing accurate, legal and thus efficacious reports about the economic activities and condition of a business. These facts support my patch that laws are needed to ensure that ethical accounting practices are upheld in all businesses of today and the future.
As noted and outlined by Warren, & Reeve, & Duchac, (2011) in their table entitle Accounting and Business Fraud, the authors list various companies and how the ethical violations during the early 2000s led to fines, firings, lawsuits and in a a few(prenominal) of the more prominent cases, as detailed by the authors; American International Groups (AIG), whose accountants used sham accounting transactions to elaborate their performance, Enron, whose accountants fraudulently inflated its financial results, which lead to over 60 billion in stock market losses and HealthSouth whose accountants overstated their performance by 4 billion in spurious entries, lead to criminal prosecution and convictions.



(p4) Although not all of the companies that were caught during this decennium of creative accounting were criminally prosecuted for their actions; Terex, who recorded profit prematurely and inflated their profits, were only fined. They ended up paying 8 million to the SEC (Securities and Exchange Commission) in settlement. These companies did have one thing in common, all of these businesses engaged in wrong accounting practices. This was the binding thread to all of the companies violations. It was with these abundant fraudulent accounting activities being exploited by so many an(prenominal) major American companies that congress was impelled to rewrite the laws to...If you regard to get a full essay, order it on our website: Orderessay



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