The Role of Ethics and Compliance in the Organization’s Financial Environment
The role of ethics in business refers to the relation between the business environment and other three levels, in order to make a compromise. There levels are traditionally see as:
The role of ethics in business refers to the relation between the business environment and other three levels, in order to make a compromise. There levels are traditionally see as:
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The macro level: the ethical guide at macro level refers to a national or international business, context that is the result of the political, cultural and religious environment;
The institutional level: the ethical guide at this level refers to the ethics that characterize an organization. In many studies, these ethical aspects involve the social responsibilities;
The individual level: the ethical guide that refers to the personal ethics in an organization. This is the result of a series of influences and pressures.
The role of ethics in the organization’s financial environment is the best reflected by book- keepers, who should respect a number of preliminary conditions or primary principles:
- Integrity. An expert book-keeper should be sincere and correct in his work. The integrity involves not only honesty, but also its perception in a correct and realistic manner. The principle of objectivity requires that all the expert book- keepers to be honest and not to have conflicts of interests.
- Objectivity. The book- keeper should be impartial and not to admit conflicts of interests or outside influences. They must do their work in different areas of activity and have to prove their objectivity in different circumstances.
Also, the associates and the leaders of the organization must be realistic and honest regarding their financial goals and interests, in order to do the best for the company. They should establish from the beginning which are their attributions and remuneration and what exceptions are allowed in special situations.
The ethics in business involve not only those who are in the management or the financial sector, but also all the employees of the company, as each has its own role.
Professional organizations, no matter what their size and finances are, should try to solve these problems by developing a written ethical code.
