3 Oct 2022

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The Importance of Ethics in Accounting

Format: APA

Academic level: Master’s

Paper type: Coursework

Words: 394

Pages: 1

Downloads: 0

Today, in the business world, the importance of ethics in accounting cannot be overemphasized. In this regard, the questions about the acceptability of certain business practices take center stage . Irrespective of their legality, actions taken by companies are judged as right or wrong, or as either ethical or unethical ( Klein, 2014; Dinah & Christy, 2012; Onyebuchi, 2011; Koumbiadis & Okpara, 2008). Based on the presented case, the decision by the owner of Giuseppe’s Italian Restaurant to change the pricing of strawberry cheesecake for half-price after 10 p.m. is justified and ethical. However, the decision to ask his servers first to offer the cheesecake at the full price first after 10 p.m. is unethical. This is because the move is hinged on the premise that a customer will only pay half the price if he or she is full. In any ethical work setting, a seller ought to display or communicate the correct prices and leave the decision of whether to purchase or not to the consumer (Dinah & Christy, 2012).

Likewise, it is unethical for a server to offer the cheesecake at half-price at 9.30 p.m. to a customer who is unwilling to foot the full amount. As long as the management has communicated the new changes, it would be prudent for the client to foot the full cost. This is part of good practice; whereby a customer is made an offer and makes a choice on whether to take it or not (Dinah & Christy, 2012). The server only acts as an intermediary in this scenario, and thus should not change prices so as to favor one customer over another.

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Further, t he decision by the server to immediately offer cheese at half-price to her friends’ at 10 . 00 p . m . is ethical. The is because it is in line with the new manager’s directive . Moreover, by having told her friend’s about the offer, the server was supporting and promoting Giuseppe’s sales strategy. Therefore, t he decision to take advantage of the offer is justified and cannot be said to be termed unethical on the part of the server’s friends.

In the case that the server’s friends arrive at 9.45 p. m ., and the server advises them to wait for 15 minutes so as to enjoy the half-price offer , then his or her action is considered unethical manner . Th is is because the actions go against the company’s terms , and besides, t he server will have denied the business half the expected revenue from the cheesecake sales at that particular time ( Onyebuchi, 2011). 

References  

Dinah, P. & Christy, C. (2012). Accounting Ethics: Principles to Work by . International Journal of Advances in Management and Economics, 1 (5), p. 175-182. 

Klein, G. L. (2014).  Ethics in accounting : A decision-making approach . Hoboken, NJ: Wiley. 

Koumbiadis, N., & Okpara, J. O. (2008). Ethics and accounting profession: An exploratory study of accounting students in post-secondary institutions. International Review of Business Research Papers , 4 (5), 147-156. 

Onyebuchi, V. N. (2011). Ethics in accounting. International Journal of Business and Social Science , 2 (10). 

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StudyBounty. (2023, September 16). The Importance of Ethics in Accounting.
https://studybounty.com/8-the-importance-of-ethics-in-accounting-coursework

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