Importance of Financial Decision-Making in the Business World

In the business world, fiscal decision-making is important. Some organizations accept trouble with business relationship and the financial decision-making process in todays diverse organizational morals. In this worlds current economy, the expectation for organizations is to behave in an good manner. The business world consists of people with different respectable belief systems, which makes it touchy to define ethics (The Journal of Accountancy, 2007). Organizations that do enforce a encrypt of ethics piece of tail create unwanted behaviors within the organizations. These unethical behaviors rat affect each individual associated with the organization.When an organization instills good ethical behaviors, its set up of success and longevity is more likely to be high. Organizational ethics are a significant part in financial decision-making and accounting. honest principles set the foundation on which a cultured society exists. An colossal illustration of ethics in accoun ting and finances is the Sarbanes-Oxley knead of 2002. aft(prenominal) several financial frauds reported in 2001 and 2002, the president signed the Sarbanes-Oxley Act in July 2002. This act established major modifications to the financial practices and corporate ecesis regulations. According to n. d. 2006), The given name is after Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, and it also set a number of non-negotiable deadlines for all organizations to comply (para. 1). The Sarbanes-Oxley Act, cognise as the corporate responsibility act, act gives considerable supervision responsibilities and curb to the Securities and Exchange Commission ( sulphur) above organizations external auditors and distribution of financial statements. The SEC mustiness employ a public company accounting prudence board (PCAOB) with the authority to control the public accounting (Albrecht, Stice, Stice, &038 Swain, 2005, p. 01). This law was define in place be cause of the involvement of Enron and Tyco International in several accounting scandals. For most organizations, making money is important money is what makes the business successful. However, a business that becomes greedy and regulates to make money illegally entrust lastly fail. In the article Beyond Sarbanes-Oxley, Neil S. Lebovits, advises businesses to ensure their ethical health by doing several things. Lebovits suggests that organizations must employ the following cardinal ethical beat practices to be successful cut back ethical role models, demonstrate ethical ecision-making, and kick upstairs pushback (Lebovits, 2006, para. 5). The Directorate of Planning, Training, Mobilization, and Security (DPTMS) organization that I work for employs these three ethical best practices daily. The management always ensures that workers behave professionally spot serving soldiers and making the right decisions that could affect the soldiers training during this time of war. The DPTM S leading provide explanations on how to make decisions and why the selection of the judgment. The organizational managers have an open-door policy to listen to the workers concerns.Additionally, managers walk throughout the day asking employees if he or she has any issues that the managers could assist on. These types of actions create a sense of conceive in the leadership that everyone worker wants to emulate. Lebovits also proposes that organizations can do more to ensure the organization workers behave ethically at all levels. Lebovits suggests that, first, organizations cultivate ethical role models. These role models structures must include natural influencers who queer strong ethical behavior in their day-to-day work in the financial departments of the organization.Organizations must give influencers proper recognition on every occasion possible. By involving influencers in assignments, the individuals can have an encouraging strike in the organization. When an organizati on rewards its influencers efforts, the organization can cultivate ethical canalise (2006). Organizational ethical behavior starts at the top of the organization. The leadership must motivate individuals to follow its behavior. Employees watch and listen to their management carefully for signs of how to act. leadership should behave accordingly and set the example for the workers to follow.When suitable, leaders must say workers examples of their business decisions involving their ethics and how they used good judgment. This type of honest conference provides employees with a quick look on how leaders act and recall while representing the organization (2006). Moreover, Lebovits proposes that organizations should also encourage pushback. In other words, companies should encourage their employees to speak up if they question financial actions and decisions that affect them. Ethics hotlines, anonymous e-mails and approachable managers are ways for companies to obtain this type of feedback.Organizations and their key personnel office should always conduct themselves ethically and legally. They should promote an environment in which employees can articulate work-related concerns without negative effects and free exchange of information (2006). The organizations that decide to implement and follow good ethical behavior exit come upon success and an excellent status as ethical and fair instiution to the clients, employees, and the shareholders. These benefits will assist the organization in the financial phase, and when organizations fail to execute will result in poor financial performance.References Albrecht, Stice, Stice, &038 Swain, (2005). Accounting Concepts and Applications (9th Ed. ). Quebecor World, Versailles, KY South-Western, Thomson. Lebovits, N. (2006, August, 2006). Beyond Sarbanes-Oxley tether best practices to adopt in your organization. Retrieved March, 2011, from http//www. aicpa. org/pubs/jofa/aug2006/lebovits. htm N. D. (2006). The Sarb anes-Oxley Act. Retrieved from http//www. soxlae. com The Journal of Accountancy (2007). Retrieved March, 2011, from http//www. aicpa. org/pubs/jofa/joahome. htm