Ethical accounting practices are incredibly important in any company that’s trading. With both private and public companies, there are reasons why these ethical accounting practices must be followed to the letter. These practices are there to ensure that the business keeps corporate and social responsibility at its heart, and ensures that the company can ensure that everybody is thought of at all times. These ethical accounting practices are just on way in which a company can ensure that whilst it continues to make a profit, but continues to ensure that all the other people that the business affects are thought of.
A private company would need this for the sake of its image. A private company will have to cater for the perception of itself from its workers, and the public at large. If the company does not achieve this level of corporate and social responsibility, then the workers will no doubt be unhappy about the practices. The workers may go to the press or talk outside of the business about practices they are not happy with. This can pretty much destroy a company, as they may be seen as not being considerate towards other people.
A public company would have an equal amount of scrutiny from the public. Given that a public company would be funded by the taxpayers, it’s important that they are always working around a concept of corporate and social responsibility. Hence, they need to spend as much time and effort on making sure that they remain responsible and use ethical accounting practices. So no matter what company, it appears that in the modern day, all companies need to take ethics into account with daily practices.
A private company would need this for the sake of its image. A private company will have to cater for the perception of itself from its workers, and the public at large. If the company does not achieve this level of corporate and social responsibility, then the workers will no doubt be unhappy about the practices. The workers may go to the press or talk outside of the business about practices they are not happy with. This can pretty much destroy a company, as they may be seen as not being considerate towards other people.
A public company would have an equal amount of scrutiny from the public. Given that a public company would be funded by the taxpayers, it’s important that they are always working around a concept of corporate and social responsibility. Hence, they need to spend as much time and effort on making sure that they remain responsible and use ethical accounting practices. So no matter what company, it appears that in the modern day, all companies need to take ethics into account with daily practices.