Ethics, Accounting and Business Decisions
In the article Business and Accounting Ethics written by Dr. K. T. Smith and Dr. L.
Murphy Smith, the authors affirm the need for ethics and decision-making in accounting
due to recent unfavorable business practices. They stress the importance of maintaining
and implementing regulations for professional conduct for public and private accountants.
In addition, they raised question, What is my highest aspiration? The answer might be
wealth, fame, knowledge, popularity, or integrity. Nevertheless, if integrity is secondary to
any of the alternatives, it will be sacrificed in situations in which a choice must be made.
Such situations will inevitably occur in every persons life. (Smith, 2003)
In exploring the article, the author show how ethical behavior is the utmost important
factor in maintaining professional conduct in the business environment; including
accounting practices. According to the article, The purpose of ethics in business is to direct
business men and women to abide by a code of conduct that facilitates, if not encourages,
public confidence in their products and services. (Smith, 2003)
So what is ethics? Ethics (from the Ancient Greek “ethikos”, meaning, “arising from
habit”), a major branch of philosophy, is the study of value or quality. It covers the analysis
and employment of concepts such as right, wrong, good, evil, and responsibility.
(Wikipedia, 2006)
Ethics in accounting affect and relates to all positions in a business. These ethics guide us
to make the right choices. The influence of decision-making can be based on a person
