ASSIGNMENT #5
The claim that accountants will save the earth is true considering the context in which the claim is discussed. The fact that there is need to be accountable to the society and the shareholders on the activities of the organization calls for the inclusion of accounting professionals in preparation of reports that offer a true reflection of how a company makes money such that there are higher level of transparency in running organizations .
There is need to address how resources are used within the firm by adhering to corporate reporting practices that expose the returns of the organization. Reliance on accountants is not only important to the society and shareholders but also to the organization as it provides a situation where firms are able to compare performance with other industry players as well as make performance measurable through the estimates provided in the reports. Transparency in running the affairs of a firm implies involvement of external and internal accountants who are able to analyze and compare the findings between them. External accountants are preferred in this case since they are believed to be independent and free from interference by the management.
This then makes it possible to achieve higher levels of transparency in making the society and shareholders informed on the activities the organization engages in, how it makes money and how the returns are divided among the key areas that need attention. However, while we appreciate the fact that accountants could save the world, there is need to consider the aspect of financial greed that makes firms and accountants fail to give a reflection of material facts in the corporate reports. There is need for regulations that make accountants accountable for their actions so as to achieve higher levels of integrity when compiling and making reports accessible to the public.
The Money Game
The major claim made from the reading is the fact that changes in financial systems have changed the attitudes of individuals and governments. The money game involves acquiring money people hold in a manner that depicts greed. Such actions have led to transformation of societies such that the society have departed from efficient production of wealth to extraction and concentration of wealth. The United States has faced major criticism for its influence on the financial systems where it created the dollar as a universally accepted currency but with the agenda of expanding its military and commercial sector.
The need by individuals and businesses to have more money has led to replacement of human capabilities with automated operations that produce more while managers carry out millions of high speed, short term transactions with the aim of protecting their reputations and careers. The motivation of every manager is to make money multiply at a rate larger than that of the current rate of interest which then proves that money games have led to so much greed among individuals and businesses.
However, while there is need to acknowledge the fact that money has played a critical role in improving socio-economic status in countries, it is important to analyze the consequences of money games. Money games have led to power dominance where powerful nations continue to compete in efforts to have an influence on the developing nations. This form of dominance is subject to major political tensions that in turn put the lives of the society in danger. Corporate organizations continue to engage in forms of competition that are geared towards limiting the success of rivals since aspects such as economies of scale and control of strategic resources limit entrance of new firms into the industries.
Works Cited
Bakker, Peter. "Accountants will Save the World." Harvard Business Review (2013): 2-5. Document.
Korter, David. When Corporations Rule the World. Bloomsfield: Kumarian Press, Inc, 2002. Document.
