Using appropriate theories, discuss the concept and practice of Essay

Using appropriate theories, discuss the concept and practice of ethical, social and environmental accounting and reporting - Essay Example When the business organization makes commitment to business ethics and complies with the business accounting policies, it is said that the organization is following the concepts of ethical accounting concepts and policies (Keen, n.d.). The ethical accounting is done by an â€Å"ethicist†. An ethicist has earned a doctorate degree in the field of scientific discipline or philosophy. They know the intricacies of business through studies in business ethics. The ethicist provides a non accounting perspective while an accountant provides financial perspective (Keen, n.d.). They help in ascertaining whether the business organization is complying with the ethics and business standards of the company. Most companies have established mission statement but not ethical standards. An ethicist helps in drafting and implementation of ethical codes. The management has to make sure that the employees follow the ethical standard and codes. Majority of the companies are enforcing their own ethical standards. Violation of these ethical standards leads to serious consequences for the employees (Keen, n.d.). In the United States of America, the Ministry of Finance makes strong attempts to help investors receive full disclosure of information with respect to the security issues (The International Accounting Standards Board, 2008). Restrictions have been imposed by the Japanese Ministry of Finance (securities markets are regulated by the Japanese Government) to prohibit insider trading in banks. The Japanese firms are allowed to register for public bonds (The International Accounting Standards Board, 2008). Germany has less stringent laws related to disclosure of information. Weak accounting regulations have weakened the policies related to the disclosure of information. Earlier, the laws did not even prohibit insider trading but now they are thinking of incorporating strict regulations related to insider trading (The International Accounting Standards Board,