Accounting - Ethical Considerations

Question 1

What is a definition for ethical considerations?

Answer 1

Similar to the legal requirements. A firm with strong ethical considerations will build goodwill for their business in the form of a strong customer base, loyalty and growing profits

Question 2

What are some examples of ethical considerations?

Answer 2

Treatment of employees
- Safe working conditions, and correct pay
Products sold, the business should ensure that:
-Products are sources from suppliers that provide safe working conditions
-Products meet minimum required safety standards
- Correct advertisement relating to products
-Products purchased from local supliers

Question 3

Other ethical considerations include?

Answer 3

Type of services
- Customers are sold what they require and are not forced or charged for purchasing unwanted extras

Question 4

Ethical considerations around the Impact on society and the environment?

Answer 4

• Products, packaging and production methods meet the environmental standards
• Privacy is maintained if a business has personal details about the customer
• It stocks items with a positive impact, in contrast to negative like, alcohol or tobacco
• Waste is correctly disposed of