Should a business’ balance sheet report as liabilities moral or social obligations?

Should a business’ balance sheet report as liabilities moral or social obligations not constituting legal obligations (assume these are subject to reasonable measurement)? 

Since the business environment is competitive and unpredictable, investors depend on data from balance sheets to determine the health and sustainability of a business. Therefore, some businesses might opt to misrepresent their liabilities in the balance sheet to give an impression that they are financially sound and on the right growth path. However, such practices are discouraged by business laws and regulations ( Jeffrey, 2015) . Even though organizations have a legal obligation to report their liabilities, it is also their social and moral obligation to do the same without the behest of government agencies or law enforcers. Companies have a responsibility to their investors. Therefore, they need to be transparent and honest by not misrepresenting their performance to give a false sense of stability or financial health ( Jeffrey, 2015) . Such actions are immoral and irresponsible, and companies which have the interests of the investors and stakeholders at heart are morally obligated to provide an accurate balance sheet when it is required. 

Reference 

Jeffrey, C. (2015).  Research on professional responsibility and ethics in accounting: Vol. 19 . Bingley, U.K Emerald