| Abstract |
There is a growing consensus that focusing on short-term profit or shareholder value leads to poor business results, so businessmen should shift from short-term profit orientation to long-term success. That paradigm shift in business doing is a massive challenge for accounting theory. It requires re-thinking much of accounting methodology. Accounting theory should therefore encompass not only financial and economic data, but also should embed social aspects, among them ethical and environmental issues. In author's opinion, these times of historic change will reshape financial services provided by accountants. The objective of the article is to contribute in accounting transformation by addressing the need to incorporate ethics into the theory of contemporary accounting. With respect to reliability, author discusses the importance of ethics stressing that modern accounting is no longer based on mathematical models only. Making ethics an important part of accounting is in accordance with sustainable finance that fosters initiatives promoting activities that are economically viable, socially beneficial, and environmentally responsible at the same time. |