Adhering to the IMA Statement of Ethical Professional Practice is a challenging task for multinationals that have to operate in heterogeneous market environments. For instance, adhering to these guidelines requires firms to invest many resources, some of which could have been used for production purposes. In addition, ethics may reduce a firm’s competitiveness as it has to balance between doing good and making products whereas other firms are concerned with making profits. However, in the light of extensive consumer education programs, most consumers nowadays want to be associated with firms that adhere to ethical guidelines. Consequently, although adhering to ethical guidelines may seem demanding and costly in the short-term, it is a worthy investment as firms benefit in the long-term.
Inhaltsverzeichnis (Table of Contents)
- Introduction to Managerial Accounting
- Task 1: Considering Ethics
- Outsourcing
- Sustainability
- Social Responsibility
- Effect on Competitiveness
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to review the extent to which business processes of outsourcing, sustainability, and social responsibility adhere to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice. The key themes explored are:- Ethical considerations in business processes
- Balancing profitability with ethical practices
- The impact of ethical business practices on competitiveness
- The challenge of adhering to ethical guidelines in a globalized market
- The role of consumer awareness in shaping ethical business practices
Zusammenfassung der Kapitel (Chapter Summaries)
The essay begins by introducing the concept of ethical considerations in business, highlighting the need to balance profit motives with the well-being of stakeholders. It then delves into three specific business practices: outsourcing, sustainability, and social responsibility, examining their alignment with the IMA Statement of Ethical Professional Practice. The outsourcing section uses the example of Apple, which outsources production to manufacturers in countries with lower labor costs. This raises concerns about ethical practices, particularly regarding working conditions. The sustainability section examines Tesla Motors' efforts to produce electric vehicles while maintaining profitability. The company's commitment to sustainability faces challenges in meeting investor expectations. The section on social responsibility explores McDonald's fast-food industry and its potential negative impact on consumer health. It highlights the ethical considerations of marketing and information disclosure. The essay concludes by considering the impact of ethical practices on competitiveness, arguing that while adhering to ethical guidelines may pose challenges in the short term, it can lead to long-term benefits.Schlüsselwörter (Keywords)
This essay focuses on the intersection of ethical business practices, managerial accounting, and globalized market environments. Key concepts explored include outsourcing, sustainability, social responsibility, the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, stakeholder welfare, profitability, competitiveness, and consumer awareness.- Quote paper
- Nicholas Guantai (Author), 2011, Introduction to Managerial Accounting, Munich, GRIN Verlag, https://www.grin.com/document/207541
