Ethics versus Human Nature
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Ethics versus Human Nature
Ethics is a human phenomenon. Humans are innately subjective thus value things with sentimental attachments higher than recent acquisitions. It follows that I am more likely to rescue a dog given to me by my late grandfather than to save the regular street child when forced to choose However, the ethicality of placing a premium on my dog’s life regardless one’s attachment over a humans is contentious. In the same line, family members tend to pay their kin higher wages than the market rate by asserting their extraordinary input into the business and their unwavering commitment to protect its interests relative to their contemporaries. Ethical accounting especially when markup salary is used to justify tax deductions demands objectivity. This entails treating the family member as a stranger to validate their assertions and mitigate claims of conflict of interest. Quantifying the additional input in accounting terms often proves problematic.
The proponents of accounting ethics attempt to protect objectivity in financial transactions. Their mandate is essentially mitigating natural human tendencies. The fall of the Lehmann Brothers financial empire was collateral damage of man’s tendency towards self-preservation. Their ingenious off-balance-sheet-liabilities a technique of hiding debts proved to be their downfall. Rather than a gradual decline of the company, its shares fell abruptly when the public, my parents notwithstanding, scrambled to protect their interests condemning the firm to bankruptcy. Every decision financial or otherwise has an emotional dimension. Instead of attempting to subdue the emotions to optimize rationality, one should strive to make emotional aspects of a subject that conform to the overarching moral code of conduct. Illustrate that ethic behavior aligns with their best interests. Fraud is usually the confluence of attitude and opportunity. Adherence to an unofficial code of conduct is more enduring a moral behavior will persist even in the absence of legislations. Ethical attitudes will be maintained even when the opportunity to be fraudulent occurs beyond the law’s scrutiny.
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