Code of ethics – article analysis
Defining code of ethics
The term ‘code of ethics’ refers to the guiding principles that are developed for helping professionals in maintaining business conducts with honesty and integrity. It is also described as an ethical code in various organizations and may focus on the sections, such as a code of conduct for the employees, professional practices, and overall business ethics. It may present the values and missions of the organization or define the way in which the professionals in the field are expected to handle various issues. The codes of ethics are generally designed in alignment with the core values and professional standards of the firm (CIA, 2018).
Summary of an article on code of ethics
An article analyzing the changes in ethical codes for accountants was chosen to understand the topic to a better extent. In the study, the researchers evaluate the developments of the code of ethics over a period of 30 years from 1977 to 2006. The authors consider a wide range of literature on translational regulation to conduct an extensive evaluation of the archival documents. During the study, the researchers obtain insights on how the ethical code was developed for serving the role in a regulatory environment with increased complexity (Sonnerfeldt & Loft, 2018). In the process, the study revealed the sequential events in addition to the dynamic forces that had an influence over the nature of the contents in the considered periods. The researchers came up with the fact that the changes in the priorities of the IFAC in pursuit of the accounting aspirations across the globe led to the creation of a mechanism that permitted the firms of transnational accounting to regulate the ethics committee priorities. The international regulators also had a significant influence on the process. The efforts of the committee for legitimizing and securing the code endorsement had been constrained by the basic program of work for developing the model code with as minimum harmonization as possible. It was found that the committee chose to shift its concentration towards fulfilling the requirements of the international regulators through the addition of increased principle-based ethical codes for rule-based guidance with the aim of prioritizing independence.
Discussion on the relation of the article with the topic
The codes of ethics often act as a guiding framework for a variety of professional fields. In the study, the primary aim of the researchers was to contextualize the signs of progress made within the codes of ethics by the IFAC for the professional accountants. The importance of a well-established ethical code has been reflected during the study. The way through which the codes of ethics influence accounting in a transnational firm clearly points to its importance. As stated in the study, the codes had changed over the past 30 years for the accounting firm. Its importance and contributions are equally applicable across other industries as well.
Most of the business organizations across the world generally have a set of ethical codes based on which the members of the respective organization must operate. It not only helps the organization to enhance its productivity but also promotes a good working environment for the employees (Stievano & Tschudin, 2019). In extreme cases, employees can be dismissed or terminated if they break the ethical codes of the firm. Thus, it can be said that the code of ethics outlines the regulations for employee behavior and makes the provision of a solid groundwork for issues a preemptive warning. In this context, it is necessary to mention that the codes of ethics are equally applicable to the organizational administrators as well. As they stick to the ethical codes, an expectation of universal compliance is automatically set for the employees of the organization – irrespective of its size and management principles.
Reference
CIA, C. (2018). Fundamental Principles in the Code of Ethics. The Journal of Government Financial Management, 67(3), 59-59.
Sonnerfeldt, A., & Loft, A. (2018). The changing face of ethics–Developing a Code of Ethics for Professional Accountants from 1977 to 2006. Accounting History, 23(4), 521-540.
Stievano, A., & Tschudin, V. (2019). The ICN code of ethics for nurses: a time for revision. International nursing review, 66(2), 154-156.