CORPORATE SOCIAL RESPONSIBILITY and ETHICAL ISSUES Harpreet Kaur Assistant Professor, S.G.T.B

CORPORATE SOCIAL RESPONSIBILITY AND ETHICAL ISSUES Harpreet Kaur Assistant Professor, S.G.T.B. Khalsa College, Sri Anandpur Sahib (Punjab)(India) ABSTRACT Ethics are the principles of right action with reference to a particular person or profession. Values are describing the behavior, honesty, respect, discipline that comes from the role models. When these values are put in action then it’s called ethics. Ethical Issues in Accounting considers several aspects of accounting which have significant ethical dimensions, including creative accounting, the ethical implications of accounting regulation, the dilemmas faced by the accountant in the public sector, the personal and professional issues involved in whistleblowing, auditing, ethical education for accountants, taxation practice, and social accounting, which incorporates accounting for the environment. Accounting scandals which we frequently come across in this century are evidences for human beings’ violation of the rules established with the purpose of living in prosperous conditions for the benefit of some individuals or groups. Ethics and ethical dilemmas surround their lives. Television, radio, newspapers, magazines and World Web sites feed us with stories of ethical violations in politics, sports, religion, and business. In a survey taken six years ago, over 60 percent of workers surveyed reported greater pressures than just five years earlier, and 40 percent reported that the pressures had increased in just one year. Thus, today’s organizations have a clear need to understand and control the ethical forces at work inside their walls, and more are attempting to do something about it. The main aim of this paper is to study and analyses the corporate social responsibility of the leading companies working in India. For the purpose of the study take analysis of five leading companies. Keywords: accounting, Business, Corporate Ethics, social responsibilities. I. INTRODUCTION Corporate Social Responsibility (CSR) main aim is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public spare. Being a good corporate citizen the companies have to be internally well governed and externally responsible. Accounting ethics are also an important part of CSR. It‟s a responsibility of the company that they must provide the true and fair view of accounting data so that the stakeholders can take the right decision. Ethics in Accounting is one of the most important, yet most misunderstood, concerns in the world of business today. The field of business ethics deals with questions about whether specific business practices are acceptable. Regardless of their legality, actions taken in such situations will surely be judged as right or wrong, as either ethical or unethical. The very nature of business ethics is 696 | P a g e controversial, and there is no universally acceptable approach for addressing these issues. On the other hand, governments encourage organizational accountability for ethical and legal conduct. 1.1 Business ethics: The word “Ethics” is derived from Greek word “Ethor” which slandered or ideas that prevail. Business ethics are the moral principles which should govern business activities. These provide code of conduct that guides business managers in performing their jobs. A company‟s managers play an important role in establishing its ethical tone. If managers behave as if the only thing that matters is profit, employees are likely to act in a like manner. A company‟s leaders are responsible for setting standards for what is and is not acceptable employee behavior. It has also some important implications for corporate governance and the regulation of the public accounting profession. Sarbanes and Oxley also emphasizes on the importance of internal control by businesses which include but not limited to: Ensure compliance with laws and regulations. Safeguarding of the company assets. Avoid falsification of information in the financial records. Accountability and responsibility for functions assigned. These are measures are intended to deter fraud, padding, falsification of financial records or any other activities that may lead to misleading financial reports. 1.2 Three Factors that Influence Business Ethics Individual Managers' Opportunity: Ethical/Unethical Choices in Standards And Coworkers' Codes and Compliance Business And Values Influence Requirements 1.3 Reasons for a strong commitment to ethical values: Ethical companies have been shown to be more profitable. Making ethical choices results in lower stress for corporate managers and other employees. Their reputation, good or bad, endures. Ethical behavior enhances leadership. The alternative to voluntary ethical behavior is demanding and costly Regulation 1.4 Questions to Consider in Determining Whether an Action Is Ethical Are there any potential legal restrictions or violations that could result from the action? Does your company have a specific code of ethics or policy on the action? Is this activity customary in your industry? Are there any industry trade groups that provide guidelines or codes of conduct that address this issue? Would this activity be accepted by your coworkers? Will your decision or action withstand open discussion with coworkers and managers and survive untarnished? 697 | P a g e How does this activity fit with your own beliefs and values? How would you feel if your actions were published in the newspaper? 1.5 APESB Accounting Professional & Ethical Standards Board (APESB) is an independent body that sets out the code of ethics and professional standards with which accounting professionals who are members of CAP Australia, Institute of Chartered Accountants. APESB develops new and revised standards taking into consideration market and stakeholders needs. A distinguishing mark of the accountancy profession is its acceptance of the Responsibility to act in the public interest. Therefore, a Member„s responsibility is not exclusively to satisfy the needs of an individual client or employer. In acting in the public interest, a Member shall observe and comply with this Code. If a Member is prohibited from complying with certain parts of this Code by law or regulation, the Member shall comply with all other parts of this Code. 1.5.1 This Code contains three parts: Part A establishes the fundamental principles of professional ethics for Members and provides a conceptual framework that Members shall apply to: (a) Identify threats to compliance with the fundamental principles; (b) Evaluate the significance of the threats identified; and (c) Apply safeguards, when necessary, to eliminate the threats or reduce us to an Acceptable Level Parts B and C describe how the conceptual framework applies in certain situations. They provide examples of safeguards that may be appropriate to address threats to compliance with the fundamental principles. They also describe situations where safeguards are not available to address the threats, and consequently, the circumstance or relationship creating the threats shall be avoided. Part B applies to Members in Public Practice. Part C applies to Members in Business. 1.5.2 Fundamental Principles: A Member shall comply with the following fundamental principles: Objectivity The principle of objectivity imposes an obligation on all Members not to compromise their professional or business judgment because of bias, conflict of interest or the undue influence of others. A Member may be exposed to situations that may impair objectivity. It is impracticable to define and prescribe all such situations. Professional Competence and Due Care The principle of professional competence and due care imposes the following obligations on all Members: (a) To maintain professional knowledge and skill at the level required to ensure that clients or employers receive competent Professional Service; and (b) To act diligently in accordance with applicable technical and professional standards when providing Professional Services. Confidentiality The principle of confidentiality imposes an obligation on all Members to refrain from: 698 | P a g e (a) Disclosing outside the Firm or employing organization confidential information acquired as a result of professional and business relationships without proper and specific authority or unless there is a legal or professional right or duty to disclose; and (b) Using confidential information acquired as a result of professional and business relationships to their personal advantage or the advantage of third parties. Professional Behavior The principle of professional behavior imposes an obligation on all Members to comply with relevant laws and regulations and avoid any action or omission that the Member knows or should know may discredit the profession. This includes actions or omissions that a reasonable and informed third party, weighing all the specific facts and circumstances available to the Member at that time, would be likely to conclude adversely affects the good reputation of the profession. II. LITRATURE REVIEW Within the context of their study; a short literature review about the importance and qualities of members of accounting profession, problems experienced by members of profession in their working life and studies carried out in their country regarding the matters of occupational ethics in accounting has been given. Vincent N. Onyebuchi (2011) studied on “Ethics in Accounting” the study

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