It is probably in recognition of the loopholes in the accounting system that a set of remedial measures such as Corporate Social Responsibility were adopted by the New Labour government. Simultaneously, companies in the UK are also voluntarily adopting a set Code of Ethics, which reflects its approach to business and accounting. These sets of self-imposed rules originate from the corporate social responsibility of business corporations. It also defines the values and standards by which the company conducts its business. It provides all stakeholders with a clear understanding of the procedures and processes at various levels of the organization (Badawi, 2005). In other words it acts as the road map or set of guidelines to help the firm in acting and conducting itself in a socially and commercially acceptable manner. A well designed code of ethics will help highlight the resources available to achieve various goals set at the personal and corporate levels. A good code of ethics document will inspire confidence in all business associates – like suppliers, clients and employees. More importantly, it will also win the trust of the general public. (Shearer, 2008)
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Teri Shearer., Ethics and accountability: from the for-itself to the for-the-other., Accounting, Organizations and Society 27.6 (August 2008): p.541(33).