Ethics and Corporate Accounting Practices Research Paper

Ethics and Corporate Accounting Practices - Research Paper Example It is the structure with the help of which the objectives of the company are developed and means for attaining those goals and objective and ways of monitoring them are determined. In this scenario the role of ethics is well understood. Ethics is the moral philosophy, which involves systematic study of honest obligations, agreements, values and rules (Bloxham, 2011). Ethically carrying out the business operation in organizations is a general norm that prevails since the ancient ages. However, ethical norms or governance in case of financial reporting is a comparatively new concept, which is further transformed due to the challenging global business scenario. The major article that has been selected for this study is â€Å"Corporate governance and sustainability: New and old models of thinking†, by Eleanor Bloxham published in 2010. It discusses the traditional as well as latest significance of corporate governance in organizations. Apart from this, the transformations of the f inancial models with the changing times have been also stated. However, there are other supporting articles that have been utilized in this study in order to present a 360 degree view of corporate governance and its impacts. ... Apart from this, the role and usage of technology in financial record-keeping would be scrutinized, so as discuss the strengths and weakness of the IT based infrastructure in corporate governance. CRITICAL EVALUATION Responsibility of Corporate Governance The responsibility of corporate governance does not lie only on the shoulders of the managers in the organization. Before focusing specifically towards corporate governance in case of financial decisions making, a brief discussion on the stakeholders of the organization that are also responsible for maintaining ethics and governance in the organization would be presented in this section. There are approaches around the world based on which the role of the shareholders in corporate governance has been defined. In countries like UK and US, the corporate governance norms focus on maximizing the wealth of the shareholders through efficient means off course. However, in the primacy approach the shareholders are treated as stakeholders wh ere directors have the legal enforcement to consider the duties of the shareholders. From the economic perspective, shareholders are the risk bearers for the company. While another approach states that shareholder's primacy should be followed and directors are primarily accountable to the shareholders (Hib, 2012). Board of directors holds the major position in case of corporate governance. They are accountable to the stakeholders and primarily to the shareholders of the company. The board also focuses on the performance of the organization and the board. The management is responsible for the sustainability by enhancing the enterprise value of the company and also directs the company towards its corporate objective. It is the