ACCT 1B Lecture Notes - Lecture 3: Management Accounting, Certified Management Accountants Of Canada, Indirect Costs
Document Summary
The objective of profit maximization should be constrained by the requirement that profits be achieved through legal and ethical means. Ethical behavior involves choosing actions that are right, proper, and just. 10 core values yield a series of principles that delineate right and wrong in general terms: Companies with a strong code of ethics can create strong customer and employee loyalty. To promote ethical behavior by managers and employees, organizations commonly establish standards of conduct often referred to as company codes of conduct. Important parts of corporate codes of conduct are integrity, performance of duties, and compliance with the rule of law. Professional accountants are bound by these codes of conduct, which stress the importance of competence, confidentiality, integrity, and credibility or objectivity. It is important to design evaluation and reward systems so that incentives to pursue undesirable behaviors are minimized. Cpa canada was formed to be the body that will bring together all three professional accounting groups across canada.
