The Spread of Efficient Financial Management Ethics in Today's Society

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ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, and this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views and not essentially which are associated with university.

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ABSTRACT

This dissertation is an attempt to study the spread of efficient financial management ethics in the society of today. Financial management is one of the traditional functional areas of management that can be found in any organisation, and shall be responsible for analysing, decisions and actions related to the financial means of the business of the organisation. This research work has applied secondary method of research in order to meet the objectives and the purpose of the study. This research study has also incorporated the case of Enron and the financial difficulties it has faced due to the ethical problems that prevailed in it while managing the finances. It has also discussed the problems which led the organisation to bankruptcy.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

1.1 Background of the Study1

1.2 Aim and Objectives3

1.3 Research Questions3

1.4 Significance of the Study4

1.5 Layout of the Research5

CHAPTER 02: LITERATURE REVIEW6

2.1 Introduction6

2.2 Overview of Financial Management6

2.3 Functions of Financial Management8

2.4 History of Ethics in Finance10

2.5 Current Ethical Standards of the Accounting Industry12

2.6 Ethics in Financial Management12

2.7 Theories of Financial Management14

2.8 Conflict Management16

2.9 Ethics and Restatements of Financials19

2.10 Ethical Violations21

2.11 Financial Ethics & Increasing Role of Independent Directors22

2.11.1 Historical Context24

2.12 Ethical Codes27

CHAPTER 03: RESEARCH METHODOLOGY29

3.1 Introduction29

3.2 Research Method29

3.3 Overview of the Secondary Research29

3.4 Pros and Cons of Secondary Research Method30

3.5 Inclusion and Exclusion Criteria32

CHAPTER 04: ANALSYSIS AND DISCUSSION33

4.1 Introduction33

4.2 Scandals of Financial Reporting at Enron and Other Organisations33

4.3 Ethical Issues in the Financial Management of the Organisations33

4.4 Role of the Auditor35

4.5 Regulatory Environment37

4.6 Causes of Financial Reporting Problems38

4.7. Enron: A Brief History39

CHAPTER 05: CONCLUSION42

REFERENCES51

CHAPTER 01: INTRODUCTION

1.1 Background of the Study

Accounting is the heart of any business. Originated more than 7000 years before, in ancient Babylon, Assyria and Sumeria, accounting was initially used to record the growth of crops and herds. Today accounting is a vast subject of which financial management is an integral part. The recession in 2011 has shaken the basis of efficient financial management and has portrayed a question on the reliability on the ethical values in financial management. The dissertation aims to investigate the various aspects of financial management and its flaws in its development as into the modern society and the ...