Faith and beliefs play a significant role in how we conduct ourselves in our workplaces. This extends to the greater society and how we live and interact with each other. Different workplaces have different norms that help workers in their thinking and decision making to create a harmonious environment in the office.
Recommendation of ethical decision in the scenario
I would recommend that a higher proportion of the cost to be placed on the land because this will help the firm avoid a dip in the company’s stock. It will also help them to reap big in the future if they consider selling the land. On the other hand, putting more emphasis on the warehouse is dangerous, for it is a fixed asset. Generally, the value of fixed assets diminishes over a while. The warehouse will attract extra fees in maintenance and security. Additionally, Tones Company may also decide to expand operations, which calls for an even bigger warehouse.
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How ethical decision supports the good of the culture and society
When Tones Company pays its taxes, it will fulfil its obligation of tax payment and positively contribute to the economy. Tax avoidance is where a company uses the wrong ways to reduce tax liability (Pettinger, 2018) . By the controller allocating a higher proportion of the cost to the warehouse, they will have reduced taxable income and income taxes- this is ethically wrong. Taxation is the single most significant contributor of cashflow to the developing countries, for it accounts for over 40% of all country’s capital.
Corporate taxes help the government to create a level playing field. Huge firms sit on idle and unused cash reservoirs. The tax is progressive; massive returns on investments call for huge taxes and vice versa, which therefore gives other small corporations a healthy environment to compete and also encourages the survival of small corporations.
Economic security is achieved once the Tones Company chooses to prioritize on land. For companies to set long term goals and also work towards achieving them, there should be financial security. This security can come in the form of economic security, e.g., labour market security, where the firm should acquire skilled labour from the people. Additionally, another type of financial security is skilled reproduction security, where the firm should be able to get skilled labour from different parts of the country and be able to retain the people.
Implications of Christian worldview within the accounting workplace
Good Christian virtues are essential in day to day living. They are even better when they extend to our workplaces. Christian ethics bring biblical values, which in turn bring biblically desired outcomes and virtues, which will influence the moral decision, actions, and development. Corporate heads that incorporate good Christian virtues into leadership find it very easy in management.
Corruption is the act of receiving money for favours in accounting practices. Good accountants will know that corrupt dealings within the workplace do not conform with the industry norms and also the Christian values, in this case, shunning it is the best way possible. Other malpractices in the accounting workplace include - financial fraud to achieve the desired output, misinterpretation of books of account to hide their wrongdoings, collusions with outside parties to leak books of accounts to competitors, among others. Applying good morals in the build-up to making decisions will enable accountants to do the right things.
Businesses that don’t comply with proper ethical conduct are on the increase, and this leads to adverse effects on many sectors (George & Jones, 2010). For instance, if Tones Company goes with the decision to place a very high proportion cost on the warehouse, they will evade income tax and taxable income. Tax evasion, in turn, will lead to a loss of taxes by the government, which, after that, leads to a possible economic crisis.
References
George, J.M. & Jones, G.R. (2010). Understanding and managing organizational behaviour (6th ed.). Upper Saddle River, NJ: Prentice-Hall.
Pettinger, T. (2018). Difference between tax avoidance and tax evasion . Economics Help. https://www.economicshelp.org/blog/glossary/tax-avoidance/ .
