DOING THE RIGHT THING

SHARED FROM:

      BY ALEX MALLEY FCPA

     ACCOUNTANTS TODAY, AUGUST 2010

 

A robust code of conduct forms an important component of governance practices.  It may reduce the risk of behavior that could ultimately cause significant damage.  Promotion of ethical and responsible decision making and conduct will assist in the development of practices and maintain confidence in company’s integrity.

Reputation can take years to build, can be lost over-night.  A best-practice code of conduct must be more than a statement of aspirational intent.  Code of conduct must operate under a well-defined core values, to which everybody is committed.

Companies recognizes employees as a primary driver of business success.  But no one is able to guarantee protection with absolute certainty from the vagaries of human behavior.

It is impossible to regulate for ethics or common sense.  Governance and ethics are key components of an accounting education.  An effective corporate governance strategy involves 2 broad steps:

1. The ‘out-of-company-experience’
2. The ‘inner voice’

Corporate governance sets the tone, the policy and practices for companies in the effort to balance business and stakeholders’ needs.  But it is also important for us to take individual responsibility for doing the right thing.