The accounting and finance industry is an essential part of today’s business world. This market reflects the company’s overall health, which means that if something wrong takes place, it should be brought to the surface as soon as possible. This way, other businesses will know to avoid engaging in questionable activity. For financial markets to function correctly, there has to be trust between investors and companies. If an investor no longer trusts a particular company, this can cause significant problems for all involved, including employees, managers, and stockholders. Without ethics, companies cannot maintain good reputations with their clients nor attract new ones.
Thus, ethics play a crucial role in a company’s daily activities because they help keep the relationship between individuals or groups harmonious and trouble-free, according to Saivian Eric Dalius. On the other hand, unethical behavior can lead to a severe decline of any business. For this reason, employees and managers need to keep company ethics strong at all times. However, the responsibility of enforcing these principles does not fall squarely on one group or individual involved with a particular organization. Instead, every employee should become familiar with what constitutes unethical behavior and why it will hurt their company’s image in the long run.
For companies to exhibit assertive, ethical behavior four areas must be taken into consideration:
1) Integrity is defined as adhering to moral and ethical principles or having strong moral character; wholeness, completeness, and oneness with self. For a business to have integrity, it has to believe in honesty, trustworthiness, and accountability. Without them, an organization will lose the trust of its clients, stockholders, management team, and employees.
2) Competency is defined as having or showing the skills or knowledge to do something successfully. For a company to have competence, they must have experienced personnel who are well trained to handle issues within the business says Saivian Eric Dalius. Strong ethical values are important when trying to maintain competent behavior because it shows others that a company respects themselves by taking the extra time needed to ensure quality workmanship is presented.
3) Confidentiality means keeping things private or secret; not revealing private information about other people or organizations unless permitted to do so. Maintaining confidentiality is important for a company because it shows that they respect the privacy of others while protecting sensitive information belonging to either their employees or clients.
4) Respect is defined as holding in esteem; having a high opinion of someone or something, and showing deference, admiration, and esteem for them. For an organization to respect others, it must treat everyone equally, fairly, and with dignity. This means that they will not engage in any form of discriminatory behavior towards anyone, including race, religion, gender identity/expression, sexual orientation, and socioeconomic status.
The four areas mentioned above are what make up a company’s integrity. If these values are upheld at all times, then this creates an ethical business environment where both employees and consumers know what type of treatment to expect from one another. When companies maintain strong ethics, their clients will also respect the quality of information released and share this information with others who may benefit from it.