3-4 Accounting Assignment wk8 in 24 hours
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WK7AccountingAssignment.docxModule 3 Assignment:
Organizational Performance Analysis and Recommendations
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Date:
Walden University
WMBA 6050: Accounting for Management Decisions
Part 2: Ethical Responsibility
Introduction
Ethical responsibility is a concept in Business Management that lends itself to identifying, creating, and adopting the highest ethical framework that observes, respects, and upholds a conducive working environment. Moral responsibility reduces conflict of interest, builds the brand image, and increases profitability (Roša & Lobanova, 2022). An ethically irresponsible organization is often confronted with a myriad of problems, including but not limited to conflict with stakeholders, including the government and employees. To this end, business organizations must act and operate ethically. In this regard, this paper critically evaluates the importance of ethical responsibility to the organization. The analysis will examine the ethical responsibility environment of a midsize copper smelting company in northern Canada. This analysis will build on the company's previous evaluation of the capital budgeting plans of the organization.
The importance of Ethics in Managerial Accounting
Ethics are a core part of Managerial Accounting and are essential to ensuring that the integrity of business transactions is maintained. Without ethics, managers cannot trust their employees to uphold company policies and procedures, which means that any business transaction may be subject to fraud or misrepresentation. More importantly, without an ethical foundation, managers would not be able to make decisions that are in the best interests of the company as a whole and its shareholders (Rosa & Lobanova,2022). Managers must have a solid understanding of ethics and how it affects their business. It is not enough for managers to say they have ethics; they must prove this by acting on their beliefs. For example, if a manager believes paying employees somewhat is essential, they should ensure that they adhere to this belief by paying employees fairly. The same goes for other ethical principles, such as honesty, fairness, and transparency. Managers should never forget that they are responsible for enforcing ethical standards in all aspects of their organization's operations. This includes ensuring that all employees know what they need to do to comply with all applicable laws and regulations and reporting any violations to appropriate authorities. If managers are accused of violating an employee's rights, they lose their right to make future decisions about the employee's performance.
Additionally, Ethics is important because it helps the manager to do their job properly and ethically, which means they will be able to do more good for their organization. Ethics is also necessary because it teaches employees how to work together in a way that will benefit them all as a team. As long as everyone knows what is right and wrong, they can work towards making sure everyone else gets what they need at the same time. In light of this analysis, the management of the Canadian copper smelting company should learn to fully disclose the data relating to its plant, as this will reduce the potential problems with the government and other stakeholders.
Impacts of Ethics on the organization
Ethics are essential to any organization because they help determine its culture, mission, and direction. They also influence how decisions are made, and employees engage with their work.
Ethics can, directly and indirectly, impact an organization's overall financial performance. For example, if an employer fails to pay its employees on time, it can affect the company's reputation and lead to higher turnover rates. This may cost the business money and cause significant losses in productivity and customer satisfaction, which could ultimately lead to lost revenue or increased costs as customers move elsewhere for their needs. In addition to the financial impact, ethics can directly impact stakeholders, such as employees who may need overtime pay or time off due to illness or injury. Customers who feel uncomfortable with unethical practices and suppliers might see their business grow less attractive due to unethical behavior by others in their industry (Lavekar,2021). For instance, customers may not purchase from businesses with poor ethical practices because they do not want their trust violated by receiving poor-quality products or services from businesses that do not value honesty above all else. Customers will also avoid buying from these types of businesses because it makes them feel unsafe. To this end, the executive of a Canadian copper smelting company should not only understand the discussed impacts of ethics on the organization, but they should take it upon themselves to prevent unwarranted concealing of the company information.
Recommendations
The company should implement a system for employees to report if they are aware of unethical workplace behavior and how to report that behavior. The company should also train employees to be ethical and ensure that their actions align with these principles.
In addition, the company should implement a code of conduct that clearly defines ethical standards in all departments and levels of management. This code can be made available on the company website and distributed to employees in written form so that all employees know what is expected of them within their roles and the broader organization (Islam & Greenwood, 2021). Another critical recommendation that the Canadian copper smelting company executive should implement is an ethical review committee system, where employees can come together to discuss ethical issues and make recommendations for how the company can improve. This approach would allow for greater transparency and accountability than if it were left to individual supervisors alone.
Conclusion
In summary, the success of an organization stems from how ethically it relates to the stakeholders. Ethical responsibility builds and sustains the brand reputation, gives direction to the organization, and creates a more inclusive, fair, and transparent organization.
References
Islam, G., & Greenwood, M. (2021). Reconnecting to the social in business ethics. Journal of Business Ethics, 170(1), 1–4.
https://link.springer.com/article/10.1007/s10551-021-04775-7
Lavekar, S. S. S. (2021). Business Ethics in Financial Sector. RESEARCH JOURNEY, 113.
https://www.shriwaghmarebrothers.com/wp-content/uploads/2021/10/VOL_266-B.pdf#page=114
Roša, A., & Lobanova, L. (2022). Ethical Responsibility of a Company in the Context of Digital Transformation of Work: Conceptual Model. Sustainability, 14(18), 11365.
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