Management accountants need to provide information that can help business administrators formulate strategies or modify current practices. These professionals should follow various ethical principles that are required for protecting the interests of different stakeholders. Much attention should be paid to such areas as credibility, confidentiality, integrity, and competence (Crosson 730). Apart from that, these employees should be skilled in resolving ethical conflicts (Hansen 15). In turn, one should explain why these rules are critical for these workers.
At first, they should focus on the protection of confidential data. They must ensure that this information is not transferred to the competitors of the enterprise or any other third-parties (Gijselaars 89). In this way, they can protect the sustainability of this company. Moreover, this principle is necessary for promoting the cooperation and trust in this organization.
Moreover, much attention should be paid to the integrity of management accountants. For instance, they should impartially assess the strategies of business administrators. They should state if these policies are feasible from a financial viewpoint. They must do it, even if this step can result in the criticisms of senior executives. Furthermore, they should warn managers about potential violations of ethical or legal rules. Apart from that, these people must avoid any conflict of interests (Needles 22). For instance, they must not accept any gifts from suppliers that want to sign a contract with the company (Kinney 14). Additionally, they must inform managers about these attempts. In this way, they can safeguard the company against potential losses. Furthermore, this behavior is critical for protecting the reputation of accountants as a professional group.
In addition to that, these workers must focus on credibility as one of their responsibilities (Heisinger 3). They should interpret and present financial data in an unbiased and accurate way. For instance, they need to determine if available information is sufficient for developing business policies. They should explicitly identify every potential risk related to the financial performance of the enterprise. This principle is crucial for minimizing potential losses of companies. For instance, the assistance of management accountants can help business administrators identify the strategies that can reduce operational costs. Moreover, one can argue that such principles as credibility and integrity are closely intertwined with one another.
Apart from that, these people are obliged to reach the highest professional standards. For instance, they should be knowledgeable about various regulations and rules governing financial reporting in enterprises. They should adopt the best practices and methods that are necessary for analyzing financial data. This standard can help these accountants demonstrate that their skills can significantly facilitate the decision-making in organizations.
Moreover, these employees should be able to resolve ethical conflicts (Hansen 15). In particular, they should inform their supervisors of possible malpractices. Additionally, they may need to discuss these questions with their lawyers. One should take these steps to comply with the law. Moreover, they are necessary for eliminating malpractices at soon as possible (Heisinger 3).
Overall, this discussion indicates that accountants are supposed to help executives make informed decisions. These should adhere to various ethical principles. These norms are related to such issues as the disclosure of information or communication with different stakeholders such as business administrators or third-parties. If they disregard ethical standards, they can significantly endanger stockholders, investors, and employees. Moreover, they can weaken people’s trust in the work of accountants. Thus, one should avoid these pitfalls.
References
Crosson, Susan. Financial and Managerial Accounting, New York, NY: Cengage Learning, 2013. Print.
Gijselaars, William. Educational Innovation in Economics and Business Administration: The Case of Problem-Based Learning, New York: Springer Science & Business Media, 1995. Print.
Hansen, Don. Cornerstones of Cost Management, New York: Cengage Learning, 2014. Print.
Heisinger, Kurt. Essentials of Managerial Accounting, New York: Cengage Learning, 2009. Print.
Kinney, Michael. Cost Accounting: Foundations and Evolutions, New York: Cengage Learning, 2012. Print.
Needles, Belverd. Managerial Accounting, New York, NY: Cengage Learning, 2013. Print.