Ethics and The Role it Plays

People all over the world have struggled to answer the question of what is right and
what is wrong. As children we begin to develop morals which effect the decisions we make.
These morals are applied to the way we function within the workplace in the form of ethics. Our
system of ethics determines how we act in professional settings and also enables us to make
choices regarding our actions. This plays a huge part in all businesses when it comes to
recording transactions correctly. By establishing strong ethics, we can make smart decisions and
avoid the negative consequences that could arise from recording financial reports inaccurately.
From a very young age we begin to develop an understanding of what is right and
wrong. This is heavily influenced by the people around us and our environments. Our
socialization is affected by many different sources, including our family, schools, religious
affiliations, and even the community in which we live. All of these different sources help us to
develop a moral foundation on which we base every decision that we make. Although morals
and our work ethic can overlap, they are not the same thing. Ethics takes into account our
morals as well as other factors such as work place culture and expectations. These come
together to help us create an understanding of what is acceptable and what is wrong while
operating within our jobs.
It is very easy to see ethics in terms of black and white. Right is right and wrong is wrong,
but things aren’t always so simple. Let’s consider stealing for a second. Most people will agree
that stealing is wrong, but a lot of the time we forget to consider the circumstance. If someone
were to commit accounting fraud within a major business and steal thousands of dollars, then
most people would agree that this is a completely unethical thing to do, but many times they
forget to consider the motives behind the actions. What if the thief’s mother were in critical
condition and they needed the funds to pay for her treatment? This makes it seem a little greyer
on the moral scale because they are doing something wrong for righteous reasons, making it
easy to justify the actions. Most unethical conduct in the workplace follows a simple pattern:
pressure, justification, and opportunity. This is known as the fraud triangle. Whether it be for
honorable reasons or for greed, it undeniable that unless there is a strong ethical foundation,
and cautionary steps taken within a company, the possibility of unethical action is a constant
risk. This is particularly true with in financial reporting.
If both companies and individuals emphasize the importance of developing strong ethics
and making decisions based off of them, then when tough situations come along it will not be
hard to do what is right. For those who handle financial reporting in business it can be
particularly tempting to lie or falsify the records and reports. This can be prompted by personal
greed, the desire to give the appearance of success and growth, or for justified needs as
mentioned before. Just as we are influenced by the culture around us when developing morals
and personal ethics, companies can influence the ethical decisions of employees by creating a
strong ethical culture of honesty and hard work. This coupled with the implementation of
precautions such as separation of responsibilities decreases the likelihood that situations in
which unethical decisions can be made will arise. By doing this it will be easy to do what is right
when put into a tough situation because the ethical foundations of those who are reporting will
be strong.
 Ethics is a very important aspect of not only the workspace, but of each individual’s life.
The effects that it has on the success of individuals and companies alike is without question. By
making sure that we apply ethics correctly it helps each and every one of us to avoid
unnecessary troubles and also enables us to thrive in both our personal lives and in our
business.