Financial Management Call for New Approach to Ethical-Based Financial Statement Analysis

It is true that today's business world has been characterized by moral bankruptcy violating all norms of good business ethics which, in turn, has caused mounting economic (financial problems) due to frequent company and bank failures and insolvencies, the result of their engaging in fraudulent (manipulative) deals. Inasmuch as enterprises are started with profit-making motives, the need for a thorough link between men and profit is something forgotten and the following questions have remained unanswered: Is an enterprises' success solely dependent on its profit and if so by what means is the profit achieved? Organizations responsible for production have become, save in exceptional cases, mere profit making institutions without taking into account ethical and human values, i.e., spiritually-rooted qualities at work, viz., integrity, character, inspiration and reverence. These are the qualities that are the key factors contributing to an enterprise's success in terms of ethical profitability.Keeping these considerations in view, the author has formulated a new approach to financial statement analysis incorporating moral values in business management