Strategic Cost and Managerial Accounting
21st, March 2013
Codes of ethics are important in the accounting profession. These provide the accounting professionals with a framework to conduct their business. On the other hand, this enables the bodies in charge of management and governance to evaluate the performance of the professionals for any possible wrongdoings, which are result due to violation of the set code of ethics. Management accountants and other professionals in the business field handle information, which is quite sensitive; therefore, these need some form of guidance, mainly based on ethical principles, in order to ensure the safety of such sensitive financial information in their hands.
The Institute of Accountants (IMA) is a governing body for accountants. This body therefore, has developed different types of programs and guidelines, which the accounting professionals must follow in their accounting practice. Most importantly, IMA has developed a Statement of Ethical Professional Practice, which it requires all its members, who are in the accounting field, to follow. This statement mainly bases on four most important elements of ethics, including competence, confidentiality, credibility, and integrity. Failure to adhere to the set ethical standards by IMA leads to disciplinary action (IMA, n.d).
In any industry, ethics is an important factor. However, the importance of ethics in the field of accounting is emphasized. Considering the nature of the information accountants hold, integrity must be upheld. This information is used in making important financial and economic decisions. These decisions could be investments, downsizing, or company expansion, among others. Therefore, accountants should exhibit high levels of competence. If accountants fail to adhere to the IMA Statement of Ethical Professional Practice, then these important decisions would be made basing on false and unreliable information, which would lead to failed business operations.
If professionals in the field of accounting adhere to the IMA Statement of Ethical Professional Practice, this would help in strengthening the relations between a company and its investors. Companies with high levels of financial responsibility are known to retain their investors, compared to those with low financial responsibility. Failure to adhere to IMA Statement of Ethical Professional Practice might involve engaging in unethical practices such as managerial accountants presenting false financial reporting, which eventually misleads investors. Such unethical practices will make investors cut ties with the company, as the company is considered less credible. Since employees are the image of their company, the IMA Statement of Ethical Professional Practice helps accountants and other professionals in the field of business to bear a positive image for their companies. Overall, the IMA Statement of Ethical Professional Practice provides a framework for accountants and other business professionals to conduct themselves in their professional practice. Additionally, this framework provides an ethical approach, with procedures for accountants, business professionals, and management to follow in case a member diverts from the IMA Statement of Ethical Professional Practice (IMA, n.d).
As a public relations manager, the IMA Statement of Ethical Professional Practice is important and applicable to my profession. My profession entails representing my company or clients through various events, the media, as well as campaigns, among other ways, in the most appropriate manner, which will ensure profitable outcomes. In order to be appealing to people, I must be a person of high integrity, competent in my work, and be of high credibility. This will ensure a rapport with the public, as well as help me win their trust. In this way, apart from bearing a positive image for my company, I will also benefit at my personal level, as these standards comprise traits, which are necessary for personal development. Generally, adherence to these standards will make me a high performer in my profession, and one who is able to deliver positive results.
IMA (n.d). IMA Statement of Ethical Professional Practice. Retrieved from
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