Financial Education - Business objectives based on different priorities and ethical values

The effectiveness of internal controls cannot be elevated above the integrity and ethical values of the people who create, manage and monitor them, are essential elements of the control environment, and affect the design, management and monitoring of the other components of internal control.

Thus, integrity is a prerequisite for ethical behavior in all aspects of a company's activities. A strong corporate ethical climate at all levels is vital to the well-being of the corporation, all its components, and the public at large.

Such a climate contributes significantly to the effectiveness of the company's policies and control systems and helps to influence behavior that is not subject to the most elaborate control systems. Ethical values and integrity in an organization are the responsibility of top management both in their determination and in their transmission to other members of the company and their monitoring.

Therefore, the objectives of an entity and the way in which they are achieved are based on the different priorities and ethical values, these priorities and value judgments are translated into standards of behavior, and must be embodied in a code of ethics that frames the actions of workers and guides the manager to act with impartiality.

Indeed, it is essential that top management has well defined standards of behavior and conduct so that there is no room for doubt or confusion after they are acquired by the other participating members.