Ethical Issues of Financial Reporting by Cynthia Gomez - Updated September 26, Financial reporting is a straightforward task that comes with a variety of tricky ethical issues. Breaches in ethics can result in major scandals for companies and lead to loss of investor and consumer confidence. Understanding some of the more common ethical issues that can arise in financial reporting can help those in the field avoid potential landmines that could bring not only their employers, but also their careers, to their knees.
Mary Cipriano Silva, PhD, RN, FAAN Abstract As health care workers enter the twenty-first century, they must understand the relationships among market-driven forces, the health care workforce, and financial compensation. This understanding can be facilitated by a grasp of utilitarian ethical theory and by ethical tenets of justice such as distributive justice, material principles of justice, and justice as fairness.
Health care workers also need to understand how unfair financial compensation can demoralize them and compromise their values.
However, professional associations and health care managers can take a proactive stance to ensure that organizations are ethical in their approach to financial compensation.
This tidal wave has a dual crest -- one related to market-driven forces and the other related to the health care workforce.
Both are intertwined and both are steeped in many ethical issues. In this article, however, I will focus on two specific ethical issues related to financial compensation and equity in health care. To accomplish this purpose, I will first discuss relevant background information and ethical tenets that frame the issues.
I will then discuss the two ethical issues and suggest professional and managerial strategies to cope with the issues.
Background Information Market-Driven Forces Restructuring of health care over the past decade has profoundly affected its methods of delivery and financing. This impetus for restructuring has had as its goal the "access to high-quality effective health care The preceding culprit is often called managed care; mismanaged care is a more appropriate name and excludes those managed care organizations that have decreased cost while increasing quality.
Mismanged care is a hotbed for potential or real ethical issues. In Maythe ANA published a "News Release" that highlighted a growing concern of Americans that quality of care was taking a back seat to "the bottom line.
In the summer ofSilva highlighted the ethics of consumer rights as mandated in the Managed Care Consumer Protection Act. One of these rights relates to financial compensation that does not adversly affect the health and well-being of consumers.
In sum, then, market-driven forces and financial incentives or compensation are closely aligned and, although not always the case, too often have adversely affected health care. Health Care Workforce According to Isaacs and Knickmantoday's health care workforce is the most rapidly growing part of the American labor market; it is 11 million strong and employs one out of every ten workers.
This powerful workforce's largest group is its own 2 million plus registered nurses. The vast majority of these nurses once comfortably employed in hospitals are now caught up in market-driven forces that at times seem to be beyond their control.
According to Hadley" She calls this challenge the "accepting [of] job insecurity" p. With job insecurity comes fear of job changes and losses. This fear is heightened by, among others, the increased hiring of unlicensed assistive personnel UAPs despite a lack of empirical outcomes that UAPs increase patient satisfaction or decrease cost.
To complicate the situation, the use of UAPs is generally unregulated, allowing employers to determine the staff mix for health care services Redman, If employers are driven only by cost containment, they may hire and have hired less expensive health providers to replace registered nurses.
Again, market-driven forces are at work -- this time altering supply and demand. The result is less demand for registered nurses and, thus, the possibility of decreased and inequitable financial compensation for them. Financial Compensation and Ethical Tenets Health care delivery systems, financial compensation, and ethical issues related to resource allocation are intertwined because resources are ultimately finite.Social and Ethical Accountability, Auditing and ReportingethicsSocial and Ethical Accountability, Auditing and Reporting Social and Ethical Accounting, Auditing and Reporting (SEAAR) is “the process of defining, observing, and reporting measures of the ethical behavior and social impact of an organization in relation to its aims and those of its stakeholders" (Zadek, ).
Accounting is the process of collecting, aggregating, validating, and reporting information about business performance.
Until the last century, accountants focused almost exclusively on financial information generated from double-entry bookkeeping. Ethical issues in the financial services industry affect everyone, because even if you don’t work in the field, you’re a consumer of the services. The Post Chair supports research and studies of the social responsibilities and ethical challenges facing the financial services industry.
1) They tend to ignore the spirit of the law in. Ethics and Corporate Social Responsibility in the corporate world are very important.
What follows will help you in your understanding of this very important topic – please summarize this in pages and explain the importance that ethics and corporate social responsibility play in the accounting profession: Ethics: Ethical issues as they relate to organizations and their social responsibility%(15).
Financial reporting regulations, ethics and accounting education George F. Kermis Canisius College professional ethics and financial reporting regulations.
Ethics begins in accountability on multiple fronts: to the individual; to those who rely on that person, e.g., the financial statements they generate. The decision to follow the. financial reporting is a endured from problems of ethics ethics have raised the value of ethical decision on business which are a prominent issue.
Ethics should have an essential which is affected to the stockholders, creditors and other.