Ethical Practices Paper

In my paper, I will discuss ethics practices in a company, how to avoid unethical behavior, how to find unethical behavior, how to react to ethical misconduct in the business place and how an accounting professional should behave in a business organization. I will also discuss the Enron accounting fraud scandal, and how it led to the imprisonment of the CEO and CFO of the corporation. The Enron scandal let to the government intervention that resulted in the passing of the Sarbanes–Oxley Act. In 2002 that outline the ethical practices that must be met by the CEO or the CFO or officer that performs similar functions in the organization.

Accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying,

The four standards of the IMA’s ethical professional outline Competence, Confidentiality, Integrity, and Credibility as the corner stones of an ethical company and accounting department because they set clear guidelines to follow in order to achieve ethical excellence. The four standards refer to the ability of an accounting professional to maintain a level of professional character and follow laws and regulation in Competence, Confidentiality refers to the ability to not divulged information unless legally required and not to use information to enhance or damage others, Integrity refers to the to ability to address and mitigate conflicts of interest before they can become problems and advice management of any conflicts that hinder the

One-way that the scandal could have been avoided is by creating a Chief Ethical Officer position or one with similar responsibilities that enforces procedures and policies. The Chief Ethical Officer job is to reinforce any principles and standards and oversee that ethics are being follow according to the company’s code of ethical practices. The Chief Ethical Officer serves a symbol that ethical behavior flows from top to bottom and along each step from top manager to first line managers