Question

Good business and accounting practices require the exercise of good judgment. How should ethics be incorporated into making accounting​ judgments? Why is ethics​ important?

Answer 1

Explanation:

Organizational ethics can be defined as a set of values, practices and principles that guide the company's actions and behaviors in the internal and external environment. A company's set of ethics must be shared by each employee, regardless of their hierarchical position in the company.

In commercial and accounting practices, ethics should be the basis for the conduct of professionals, since in this organizational area there is usually fraud in the statement of results, agreements and corruptions for the benefit of themselves and others.

Ethics must be implemented equally in every functional area of ​​a company, as it positively or negatively impacts the organizational results and the attitude of employees. Through ethics as a fundamental principle of a company, it is possible to achieve several benefits, such as:

• Improved results,
• Greater employee motivation,
• Improved communication,
• More market value.