Accounting Ethics

Accounting Ethics

Ethics are very important aspects of any profession and they should all be upheld if the company or organization is to operate smoothly and transparently. JP Morgan is a financial institution that was involved in selling faulty mortgage investments. From this, it is very clear that they lacked any form of ethical behavior. Since the day this was discovered, they have lacked public trust and it is something that they could easily avoid if they did everything as they were required and try to make money in the legal means and ways. After the court cases, they had to pay billions of dollars back to the government and the people. This probably is the cost higher than what they had collected from the people illegally from selling faulty mortgage investments.

Failure to observe ethical behavior of a company will result in hurting the company’s image a great deal. The people out there will always be having a bad image of the company and they definitely will not make an investment thus hurting the company’s financial gain. The employees of the company who didn’t know about this in the past will lack the motivation they have had since they will definitely speculate that there is more hidden from them. Employees won’t deliver their best (Minus, 1993). From JP Morgan’s fraudulent undertakings, it is clear that observing all ethical conducts of accounting is very important and is the key to taking the company forward a great deal.

Reference

Minus, P. (1993). The Ethics of business in a global economy. Boston: Kluwer Academic