Question

Can you please explain the answer in detail what are they talking about cuz I don't understand them. The question was: "Discuss in what ways the organization’s strategic management accounting practices might have a bearing on ethics (e.g., the ethical behavior of managers, employees, customers, etc.)"

The Answer:

The organization's strategic management accounting practices have the potential of having a bearing on the ethics of various stakeholders of the companies. First, it influences the ethical behavior of managers. Managers are usually the overseers of the various optional department of a firm. In this case, the CASS has a managerial role. The accounting practices require precision in reporting and transparency. This is because as the overall monitor of the customer system, it has the ability to cause the rise or fall of the firm. Consequently, good accounting practices put weights on CASS to uphold transparency and efficiency. Employees are the customer account manager, the product sales among others. They are in constant association with the customers. They perpetuate the company mission and vision. Accounting practices act as regulators of the employees. Most employees usually indulge in false accounting calculation with the desire to make money out of it. However, observance of good accounting principles such as documentation, maintaining information flow negates such activities. Customers are the pillars of any business. In fact, business exists to make a profit from serving customers. The primary goal of D n B is to meet the demands of the medium-sized and key customers as well. Good accounting practices create trust. In other words, the customer identifies with the bank because of the assurance of transparent and honest services. Their credits are processed on time. They are also informed of new products on time. Trust is very fundamental in creating a massive customer base. Needless to say, it is what D n B requires to ensure its long-term success.

Answer 1

The answer wants to describe the relevance of Strategic Management Accounting in regards to maintenance of good ethical behaviour in the organisation's culture also. As we know that Strategic Management Accounting is the merging of Strategic business objectives with Management Accounting information to provide a forward looking model that assists management in taking business decision. There are various model in Strategic Management Accounting which provides various model ensure achievement of business objectives along with maintaning good ethics in the culture. Such as Balance Score Card. To ensure long term sustainability of the business managing ethical behaviour is equally important as financial consideration. For example if the employer doesn't behave ethically in the society or with its employees the business will not sustain for long term.