The essential components of corporate governance are transparency,
accountability and security. By incorporating these, a company
mitigates potential risks, improving company reputation, enhancing
success and maintaining ethical standards (Wire, 2022). To create an
ethical environment, control mechanisms must be put in place to
guide organizational decision making (Mintz & Morris, 2020). The firm
I work for frequently revisits ethical standards manuals, including
subjects such as independence within an audit. Furthermore, when
setting up clients we are required to fill out forms regarding any
hindrance on maintaining independence. These various measures put
in place ensure ethical standards are followed when completing our
typical duties. This is what makes us reputable and brings us frequent
new clients and referrals.
A positive ethical environment is the result of a positive tone at the
top. Management must set the precedent for employee actions and
behaviors. Employees are more likely to behave and act ethically if
management does the same and sets standards to do so (Mintz &
Morris, 2020).
Reference List:
Mintz, S., & Morris, R. (2020). Ethical Obligations and Decision Making
in Accounting (5th ed.). McGraw Hill.
Wire, A. (2022, March 21). The 3 Pillars of Corporate Governance.
OnBoard Board Management Software | Board Portal | Board
Intelligence. Retrieved September 12, 2022, from
https://www.onboardmeetings.com/blog/the-3-pillars-of-corporate-
governance/
