Paul Cluff

SLCC FIN ACCT 2010 / Aldredge

ETHICS

Development of your personal ethics AND how personal ethics

relate to financial reporting.
Ethics is a system of moral principles: the ethics of a culture. It is that branch of philosophy
dealing with values relating to human conduct, with respect to the rightness and wrongness of
certain actions and to the goodness and badness of the motives and ends of such actions. The
discussion of ethics originated in the 1300s in both English and Greek cultures.
(dictionary.com)
The development of my personal ethics began at a young age, and I believe continues every
waking day. It is my opinion that ethical behavior is a continuous journey rather than a
destination - and either grows or diminishes by the choices we make each day in different areas
of our lives (e.g. family, friends, work, and play).
My family, religion, environment, and other factors has each played a role in my ethical
development. I was born in California, and raised in Utah as the oldest child in a converted LDS
family of married adults and six children. Although the organized religion of Mormonism and
respective principles and beliefs contributed to how I differentiate between right and
wrong, fundamental honesty and integrity were central to what and how I was taught at home
growing up. I continue to choose right or wrong from an internal compass that has been
established over many years of experience, education, and choices (both right and wrong).
Let me share a recent situation when I was faced with making an ethical choice.
I am currently employed as a Commercial Banker with Wells Fargo. When I received an
application for a new account a couple of weeks ago, the application had been signed by the
customer but one of the required boxes was unchecked although technically immaterial. I could
have checked the box, and submitted the application as though the customer had signed and
completed the entire application as required. Instead I elected to return it to the customer for
them to check the box although this was a hassle for both me and the customer. Would I do the
same thing again? Absolutely. I felt it would be unethical to check even a simple box.
Shifting to the Accounting world I believe strongly there is a strong correlation between ones
personal ethics and the quality of their financial reporting. Personal ethics could affect an
organizations financial reporting decisions depending upon the ethical experience, approach,
and integrity of the person completing the entries and the organization reporting the financial
results. Yes there are an infinite number of general standards, guidelines, rules, and principles
that outline all parameters of accurate accounting. But at the end of the day the culture of the
organization and ethics of the individual will determine the moral principles underneath the
financial reporting.