Finance Assignment Accounting Ethics Integrity Standards (Essay Sample)

Finance
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Introduction
In the field of business financial management is a very integral part and involves planning, directing, organizing and controlling of an organization financial resources. Financial integrity is important in the running of a company and thus financial managers are faced with the challenge of maintaining their level of ethical integrity at all time (Small Business, 2015). Financial managers face a lot of challenges, which vary and affect the company’s business differently, but the two major challenges that will be discussed in this paper include; maintaining ethical financial integrity among financial managers and competition from other companies.
Financial managers should abide by the financial code of ethics on integrity; they are supposed to ensure that financial records and documents of the company are accurately recorded and stored appropriately for future references. They should abide by the accepted accounting principles of the company and that making of misleading entries is not allowed, thus prohibited. The financial managers are expected to abide with the company’s internal accounting procedures and control, failure in doing so may lead to them losing their job or been sued by the company, thus they should practice this financial integrities appropriately (Small Business, 2015). The financial managers are required to practice the financial integrity of not spending or misusing the company’s money poorly. They should thus handle the money with care and not embezzle the company’s funds inappropriately. The financial managers should not indulge themselves in theft or fraud of any sort on the company. This is against the financial integrity code of ethics concerning integrity and failure to observe this may result into them been arrested and accused in a court of law for theft and thus end up in prison.
According to Hu et al (2015), in the process of execution of their mandates, financial personnel are also subject to competition posed by other firms either locally or globally. Financial personnel are therefore expected to initiate proper response towards competition that will ensure that the company gains an advantage resulting to increased revenues and more returns. There have been continuous trends in the world of business especially in the face of innovation. It is within the docket of the financial managers to set money for research and technology that will make the company shine in the environment. It is in line with ethics of the profession that Chief financial Officers should take it upon themselves to ensure moderate expenditure yet innovation requires a great share of investment. It is therefore hard for the personnel to work out the phenomenon. Research has discouraged application of operational effectiveness as a way to outperform competition which many managers would have preferred because it occurs at expense of strategic positioning (Hu et al, 2015). The reason here is that managers would gear activities to ensure operational effectiveness but on the other hand, it is simple for the competitors to mimic and copy these activities and thus the company’s competitive advantage is lessened or even eliminated. The CFO is now left upon his shoulders the role to develop strategies that are unique to organization that cannot be duplicated.