Issues of ethics, regulation and compliance and the extent to which they are contraints or threats to the organisation


All actors in a regulatory system—regulators, traders, clients, scrutineers, and stakeholders—should be encouraged and supported to act ethically. It should create a culture, incentives, and policies that promote, rather than inhibit, individuals' and organizations' efforts to act ethically. Legislators, regulators, prosecutors, and courts, as well as businesses themselves, should promote and recognize company commitment to an ethical approach through their enforcement techniques and practices. It will be critical to have an impact on both individual and group behavior. An organization's culture is a critical component of professionalism and ethics within a company. 

Following the financial crisis of 2008, many publications underlined the inadequacy of responding by introducing a slew of regulations while ignoring the need to foster an ethical culture within institutions. Since then, however, the extensive imposition of new regulation has prompted a demand for increased certainty through more rules and prescription, reducing the ability of individuals on the front line to think for themselves and diminishing their power and responsibility to act responsibly.

When a firm fails to act ethically in a community where such behavior is expected, it can expect substantial reputational and commercial damage if its actions are made public. In a more open society, ethics is increasingly considered beneficial to long-term commercial success (Hodges et al., 2002). 

Examples of Ethics, 

Professional competence, Professional behavior, integrity - honesty, confidentiality, and objectivity. 

The Institute of Financial Accountants (IFA) is a professional accounting group that certifies and regulates accountants, and it owes it to the public to guarantee that its members and students understand and follow their ethical obligations. For this aim, the IFA has embraced the IFAC Code of Ethics and its Fundamental Principles as a Member Body of IFAC (International Federation of Accountants). The IFAC Ethics Standards Board for Accountants (consisting of both practicing and business accountants from among its worldwide membership) reviews the Code of Ethics regularly, and it is thus applicable in all nations (Code of Ethics For Professional Accountants, 2013)




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