Globalization has managed to increase the interaction of people from various lifestyles. While it has led to networking among people from various continents, it has also greatly assisted in the field of commerce. Several transactions are carried out daily between different organizations, some of which are publicly listed and traded companies in major stock exchanges around the world. A huge amount of traffic is experienced online since most corporations have embraced information technology. With so many companies in different sectors of the economy being set up, there was an urgent need to set rules that were meant to regulate the quality of goods and services offered. This was to ensure uniformity in a world of diverse preferences (Sawani 2009, p.5). The International Accounting Standards Board constituted these universal guidelines. However, as from 2001, they have been renamed International Financial Reporting Standards (IFRS). In preparing their financial statements, all companies are advised to do so under the guidance of these standards. This ensures that investors and stakeholders who could be located anywhere in the world are able to access the information and easily understand a company's position at any given time. Therefore, International Accounting Standards have greatly simplified trade in the international arena and simultaneously improved management systems in many organizations worldwide hence proving to be beneficial (Gilbert, Rasche and Waddock 2011, p.24).
By use of these sets of rules, corporate ethical values have improved tremendously. This is because of the large scope of expertise involved. When formulating these rules, the board consults widely and takes into account the various cultures spread across all nations. They even give audience to several lawyers who offer their submissions in order to strike a balance that will get popular support by many countries.
