Accounting is one of the major contributions in a company’s image of ethical reporting. Accountants play a significant role in preparing and assessing daily affairs where finances flow in and out of the company. The report under discussion discusses and informs the retail industry’s tryst with accounting misuse and manoeuvring the balance sheet in order to make the financial statements appear as healthy. The retailers under immense pressure from the owners and shareholders end up in misusing their dominant position to use suppliers in order to sustain their profit ratio and performance standards.
The suppliers become the foremost prey of these retailers who use innovative ways to misuse their position in bargaining to secure a deal that is misleading and one sided, and favouring the retailer. Major players like Woolworths, Wesfarmers, Coles, Dick Smith Group, Target, Aldi, and others, are party to such unethical practices. The pressure is intense and so is the need to capture the market and prevent the one which is already held. Accounting practices are lenient in their performance and ethical compliance, which is why misinformation, twisting financial statements for favouring profits, seem to be rampant and without relevant authorities’ and judiciary intervention (APES 110 Code of Ethics for Professional Accountants, 2010).
Corporate governance is deteriorating on a daily basis, as these retailers tend to shift the blame to market conditions and use unethical means to sustain profits, thereby hurting the suppliers, consumers, and the government. This points to a culture of unethical and immoral behaviour which is becoming commonplace, and shall become subsequent if there is no intervention by the authorities. Ethical nature of accounting practice is declining to the extent of going unethical. It also misuses one’s dominant position to suppress the demands and entitlements of the weaker section of the retail chain, the suppliers and consumers (Zack, 2013).