Ethical Accounting: The Driver in Recovering Markets

Abstract

The unethical behavior by accounting professionals and corporate managers and the resulting growing epidemic thereof is a topic of increasing concern for the regulators and standard-setters worldwide. This assumes significance on account of the recovering phase of economies since global meltdown in 2008. Ethics are a key area of concern in accounting at present on account of series of corporate scandals that have taken place in the world questioning the credibility of the accounting profession and management behavior. The present paper deals with the concept of ethical accounting and highlights the relevance of “ethical” (quality) aspect of accounting (earnings) in financial reporting practices of the corporate. It further discusses its implications on the role of accounting professionals for corporate reporting and the regulatory machinery for its promotion.