Introduction to Managerial Accounting

Scientific Essay from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: None, Egerton University, language: English, abstract: 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.