April 2 2020

Ethics And Culture - Accounting Perspective:

Culture is a mind setup that distinguishes one individual, group or society from another. It is a matter of ideas and values, a collective set of mind. It is the unconscious code of conduct found within individual, or from a small group to an entire population as a whole. Culture is the perspective in which everything in life is seen- right or wrong, beautiful or ugly, and true or false.

The pursuit of ethical and cultural issues is a global affair in every profession. The discipline of accounting and finance attracts severe disciplinary action against the violators for the reason that violators of ethics and culture might affect the organization they are working for, to the extent that will make a business entity call for additional funds or apply for outright bankruptcy. The severity may be such that it might bring down a nation's economy if there were no ethics and culture guiding the financial and accounting practitioners for the very reason is because they deal in, interpret, and recommend among others financial matters relating the economy of a nation. The necessity of ethics and culture in the economic system necessitated the formation of various professional bodies.

A high ethical and cultural practice in accounting and finance is a collective responsibility of members and other stakeholders including statutory regulators. When ethics and culture are weaved in the practice of accounting and finance, the outcome will be an enterprise with integrity. Promoting ethics and culture in accounting and finance professions is indispensible to enhance self-actualization and professionalism. There must be strict observance of the laws, rules and regulations that have been developed for orderly conduct of members.

There is a need for close monitoring of ethical and cultural practices that tend towards economic and financial crimes. With the increasing trend of globalization, dangers and possibility of committing accounting and financial crimes have increased many folds. Regulators, therefore, have a critical role to play in shaping and maintaining the legal framework for developing and improving good ethical and cultural practices. The accountants and finance analysts play a significant role to keep directors and management on their toes. In every country, accountability is the livewire; hence the need to have a culture of transparency and accountability is imperative. Accountants and finance analysts with questionable character need to be monitored to prevent them from perpetrating financial crime. A system of good ethical and cultural background with strong laws and regulations will encourage compliance and conformity with a code of practice.