Ethics, Corporate Governance and Business Law

ETHICS , CORPORATE GOVERNANCE , AND BUSINESS LAW

by

[Author 's Name]

10 August 2010

Ethics , Corporate Governance , and Business Law

Introduction

Throughout the development of the accounting ethics , rules had been the basic unit of ethical analysis . Rules-based approaches to ethics laid the foundation for the development of the major ethical standards for the accountancy profession and turned the letter of the rule into the ultimate goal of ethical compliance in accounting and financial decision-making . However , the recent scandals in the corporate world have turned the rules-based vs . principles-based

dilemma into the issue of the major professional concern among accountants and legal professionals . Given the benefits of the principles-based and rules-based approaches to ethics , a new system of ethical standards in accounting must combine the features of both systems , turning principles into the basic unit of ethical decision-making and using rules to back up and clarify ethical principles in accountancy

The Code of Ethics of the International Federation of Accountants

The IFAC Code of Ethics reflects the most recent ethical developments for the accountancy profession and helps accountants all over the world to resolve the most complex ethical dilemmas . The Code of Ethics claims that the need to act in public interest is the distinguishing feature of the accountancy profession . The Code consists of the three essential parts : Part A establishes and explains the fundamental principles of professional ethics in the accountancy profession Parts B and C illustrate how the proposed ethical framework could be applied in various professional situations . The...