Ethics is so important in financial accounting and reporting that the government has passed a law regulating ethical actions of businesses related to their financial reporting practices. Why is ethics in financial reporting so important for the country's economy? Investors and creditors will no longer provide financial backing to companies if they believe their financial reporting practices are unethical. Finance executives will not know how much to pay in dividends to stockholders if their company's financial reporting practices are unethical. Production managers will not know how many units of each product to make to support customer demands if their company's financial reporting practices are unethical. Taxing agencies will not know how much to tax companies to support the government if they believe their financial reporting practices are unethical