Restoring Trust: Ethics, Scandals, and the Reform of Financial Reporting Practices

Dr. J. Madegowda
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Dr. J. Madegowda: Vidyavardhaka College of Engineering, India

African Journal of Commercial Studies, 2025, vol. 6, issue 5

Abstract: This study examines the role of ethics in financial reporting, emphasizing its importance in maintaining transparency, accountability, and stakeholder trust. By analyzing corporate scandals such as Enron, WorldCom, and Satyam, the research identifies systemic failures, governance weaknesses, and individual lapses that contribute to unethical financial practices. Drawing on perspectives from psychology, sociology, law, and corporate governance, the study uses qualitative content analysis to examine regulatory frameworks, corporate governance mechanisms, and ethical decision-making processes. The findings highlight persistent challenges in enforcing ethical standards and emphasize the need for stronger regulatory oversight, ethics education, and integrity-driven corporate cultures to reinforce financial transparency and stakeholder confidence.

Keywords: Corporate Governance; Ethics in Financial Reporting; Financial Transparency and Accountability; Fraudulent Financial Practices; Whistleblowing (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2025-98

DOI: 10.59413/ajocs/v6.i5.5

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