...A good reputation is something that all companies strive to have. With one public relations nightmare, a company with a good reputation can crumble, and that can lead to a loss of major business. It is important that companies can trust each other enough to be able to make large business deals together. It is also important that customers trust a company in order to make purchases from it. If customers feel that their money is going to be used for an unethical cause, they may choose to do business with another company. One often overlooked aspect of trust in a business setting is how much employers trust their employees and vice versa. This paper focuses on two companies (Walmart and Hewlett Packard) that have taken a major public relations hit recently. We will describe the events that caused these major hits and steps that the companies could have taken to prevent them and their responses to the incidents. Walmart Walmart has been one of the most successful companies in recent history. According to cnnmoney.com, they have ranked as one of the top 2 companies in the Fortune 500 since 2007 (Fotune 500, 2011). Walmart has over 2 million employees and is the second largest employer in the world. In the next five years it is estimated that they will add 500,000 more employees (Gardner, 2011). Former Senior Vice President of Walmart, Ron Loveless gives ten reasons why Walmart has been so successful. He credits leadership, communication, corporate structure and ethics, among...
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...principles. These principles are “responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature services” (Mintz & Morris, 2011). Each of these principles are used as a guide for the accountants performance of professional responsibilities and the commitment to uphold the publics trust even at the expense of personal benefits. This code of conduct is considered to be the foundation of ethical reasoning in the accounting field because it touches on all aspects of the accounting profession. It also protects all the parties that are involved, the accountant, investors, the public, and creditors. I believe that the three most important purposes of the AICPA is to protect the client, the public, and the accountant. I would say that the most important purposes of the AICPA because the client, the public, and the accountant are the individual parties that make a company succeed or fail. Protecting these individuals is accomplished by following the AICPA principles in all situations. The three main principles that do this are responsibilities, the public interest, and integrity. Accountants have responsibilities to anyone who employs their accounting services. They also have the “responsibility to cooperate with other accountants to improve the art of accounting and to maintain the public’s confidence” (Mintz & Morris, 2011). The second principle, the public interest, effects the public in a couple of ways. For example, the members of...
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...is presented to support that organizational performance can be enhanced through ethical leadership. An ethical corporate culture has been associated with trust, commitment to quality, customer satisfaction, employee commitment, and financial performance. There is an opportunity for managers to take a proactive approach to incorporating ethical concerns into strategic planning. In addition, there has been public policy support for top management to be responsible for organizational ethics. Academic researchers can assist by investigating the relationship between ethical leadership and organizational performance variables. The Role of Ethical Leadership in Organizational Performance There is increasing support that it is good business for an organization to be ethical and that ethical cultures emerge from strong leadership. The rewards to organizations supporting ethical cultures include increased efficiency in daily operations and decision making, employee commitment, product quality improvements, customer loyalty, and improved financial performance (Ferrell, Maignan, and Loe 1999). Three different approaches are used by companies to implement ethics initiatives. Through compliance an organization can use internal controls to gain ethical conformity. Organizations may use ethics in public relations to enhance their reputation and gain extra media attention. A third, more committed approach involves using a value-based philosophy that incorporates...
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...American Institute of Certified Public Accountants (AICPA) was originally founded in 1887. The AICPA founded accounting as profession, which is distinguished by high professional standards, strict educational requirements, a detailed code of professional standards, and a commitment to serving the public interest. In the early years of the organization rules and regulations were drafted. During the 1970s the responsibility of setting generally accepted accounting principles (GAAP) was transferred to the Financial Accounting Standards Board (FASB). The AICPA provides training, professional skills, programs, services, and publications to its 394,000 members. The AICPA Code of Professional Conduct consists of rules and principles. The principles provide the framework for the rules and rely on the professional conduct and knowledge of its members. The code is considered the foundation of ethical reasoning in accounting because it addresses all aspects of the accounting process in detail. The code of professional conduct expresses the profession’s responsibility to the public, colleagues, and clients. The code defines the expectations of individuals as a voluntary act within guidance of the principles. I believe the three most important purposes of the AICPA Code of Professional Conduct to be in Section 53 – Article II – The Public Interest, Section 55 – Article IV – Objectivity and Independence, and Section 54 – Article III – Integrity. Article II, The Public Interest, states all those...
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...Statement of Values and Code of Ethics for Nonprofit and Philanthropic Organizations This document was drafted by a special taskforce of the INDEPENDENT SECTOR Ethics and Accountability Committee, distributed to IS members for review over a four-month period from October 2003 through January 2004, and approved by the IS Board of Directors on January 29, 2004. It constitutes the Statement of Values and Code of Ethics that IS will use for its own work. In addition, the Board of Directors of IS encourages IS members, and the field as a whole, to use this document in either drafting and adopting your own statement of values and code of ethics or, for those who have already done so, reviewing and revising, as necessary, your statement of values and code of ethics. As stated within, IS believes that each and every organization in the independent sector should have a code of ethics. IS firmly believes that the process by which a code is adopted is as important as the code itself, and that the board and staff should be involved in developing, drafting, adopting, and implementing a statement that fits Covenant Partners’s unique characteristics. Going through this process with the board and staff also begins to infuse into the culture of Covenant Partners a recognition of how important it is to address issues of values and ethics on an ongoing basis. We encourage all organizations to set aside time in your board meeting or at a retreat to discuss in detail all aspects of an ethical code—and...
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...The most powerful ingredient of trust is transparency and telling the truth The job of public relations is defined as telling the client’s story, often in a positive aspect. The role of trust in this model is critical to gaining credibility with the media and, ultimately, the audiences they reach. Therefore, The need for trust in the practice of public relations is imperative. The author James said, “The single most powerful ingredient of trust is disclosure. Powerful, productive and permanent relationships are built on the trust that disclosure establishes.” In term of the disclosure, I think it all depends, and situation related to disclosure will typically fall under the following relationship: Client & organization – truthful and full disclosure of information is fundamental to this relationship. Employee & Employer – transparency of information regarding organizational practices, decisions and employee expectations can enhance employee morale and commitment. I think the most powerful ingredient of trust is telling the truth. Virtually all codes of ethics begin with the duty to tell the truth under all conditions. Telling the truth will help enterprise to safeguard the reputation. In 2014, GM waited a decade to recall 2.6 million Chevrolet Cobalts, Saturn Ions and other vehicles over an ignition-switch defect that is tied to 13 deaths. GM is in a deep crisis after the recall-post, they really don’t have a reputation for quality and must take proper action to regain...
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...Discuss whether or not CPAs who provide accounting, taxation, and related services to small business have a responsibility to serve as the “moral conscience” of their clients. The accounting profession requires ethical behavior in order to maintain the public trust. Ethical problems and dilemma arise when there is a conflict in fulfilling the moral duties or obligations and self interest. Therefore the CPA and public accountants are required to act in the line with the standards and code of ethics. According to the Utilitarian theory the action is considered as ethical if it results in achieving the greatest good to the maximum number of people. The AICPA principle of professional conduct requires that members should act with responsibility, in public Interest, objectively and independently, with integrity and due care towards the professional and technical standards to deliver the quality services. A profession is considered as a group of specialized people who posses skill based upon their impenetrable knowledge and thus they are expected to act in the best interest of public. According to the IFAC code, the responsibility of the professional accountant is not to satisfy the needs of the employer or the client but to serve the public interest. Adhering to the above expectations and professional requirements, the CPAs should serve as the moral conscience of their clients. When the CPAs come across any activity of the client which is not ethical they should discuss the issues with...
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...employees view the fairness of work-related issues in the workplace and the trust they have in the organization and its management. According to Burge, the study of organizational justice is important for three reasons: 1. Justice is a social aspect that strongly affects every-day life, whether it is social or organizational. 2. The most important asset of any organization is its members, and the manner in which they are treated influences behaviors such as commitment, trust, performance, and turnover. 3. Since the global workforce is becoming more educated and skilled, workers are demanding not only better jobs with better pay, but also more respect and dignity in their work environment. (as cited in Marjani & Ardahaey, 2012, p. 125) Some theorists such as Schmink, Cropanzano, and Rupp (as cited in Marjani & Ardahaey, 2012) have stated that organizational justice is influenced by the structure of the organization and that organizational structure, justice, and ethics are potentially related. The way organizational members view the justice and the fairness they receive from the organization will affect the way they work and interact with others in their group or team. These factors, in turn greatly affect the organization’s effectiveness and efficiency. Studies have linked organizational justice to the actual health of the organization’s members. A study in the “American Journal of Public Health” showed that a state of distress is instilled in members who have...
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...Psychologists Association (APA) , “If this Ethics Code establishes a higher standard of conduct than is required by law, psychologists must meet the higher ethical standard.” (p. 2). The rationale for this higher standard is that legislation gives these professions and the people who are members of them unique and special rights to serve the public within their specific discipline. With these rights come added responsibilities to protect the public trust. As noted by the APA (2010), “Psychologists are committed to increasing scientific and professional knowledge of behavior and people’s understanding of themselves and others and to the use of such knowledge to improve the condition of individuals, organizations, and society…They strive to help the public in developing informed judgments and choices concerning human behavior.” (p. 2). In Canada, most professional bodies are governed by provincial legislation that gives authority to accredit professional training programs, confer professional licenses, monitor professional practice of individual members, and create conduct review and disciplinary procedures based on complaints by the public or other members of the profession over the conduct of a member. In this paper, I will outline based on theories of ethical and relational leadership what principles a leader in an organization needs to consider in order to conduct themselves in a manner consistent with the goals of the APA...
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...Assignment 1: The American Red Cross (ARC) While the Red Cross’ reputation soared immediately following the September 11th attacks in the wake of their good works, the organization was soon the target of public criticism. By late October 2001, the Red Cross was being condemned by victims’ family members, politicians and the media for allocating a portion of its Liberty Fund towards future terrorist attacks, rather than addressing the needs of those who were directly affected on September 11. The three main operation fund resources are contributions, revenues from products and their services, and investment income from other sources. These funds come from corporate, foundation and individual giving, which includes the United Way, federal, wills and grants. Large donations are received from such corporation as Wal-Mart and the GE Foundation. The American Red Cross uses the Red Cross Disaster Relief Fund to support the American people who are victims of thousands of disasters across the country each year. The funds assist the Red Cross in meeting the immediate needs, such as shelter, food, and critical mental health counseling. Most recipients have been impacted by natural disasters like hurricanes, house fires, floods, tornadoes, and winter storms. Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their...
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...“AICPA Code of Professional Conduct” ETH/376 The American Institute of Certified Public Accounts (AICPA) Code of Professional Conduct is a body of principals that has a goal to guide Certified Public Accountants (CPA’s) in the “performance of it professional responsibilities” (Mintz, 2011). The AICPA Code of Professional Conduct has six essential principles and they are: Responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Each of these principles is meant to be followed by the members of the AICPA. These articles are used to explain the responsibilities that CPA’s have to clients, colleagues and to the public. The first principle, Responsibilities, protects the public of irresponsible and immoral behavior. The Public Interest makes sure the public’s best interest is protected. The third and fourth principles guarantee that the trust of the public is greatest served; integrity, honesty and confidentiality are of highest importance, as well as objectivity and impartiality. The fifth principle deals with the level of quality service and competence that the public receives and deserves. The sixth principle ensures that CPA’s have good internal controls put into place, and makes sure that CPA’s are unbiased and free of conflict when performing an audit for a client. These principles are put into place to protect the public and also to protect CPA’s, because as they follow them they will ensure that their...
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...Building an Ethical Organization Part 2 Holly Regan HSM/230 January 12, 2014 Vicki Grant Building an Ethical Organization Part 2 Establishing and sustaining a successful ethical organization with a solid morally and ethically envisioned foundation takes continuous effort by all members of the organization. Every member has a particular role to be played which contributes to the organization’s mission of improving the quality of life of homeless teens and their families and the ethical obligation of earning the community’s trust. Royalty House is a non-profit organization that is staffed and governed by an experienced, professional, diverse group of volunteers whose target population are homeless youth ranging in age between twelve and eighteen; with the exception of some clients which continue in the program until the age of twenty-one. The exception is made either when particular clients require further mentoring to provide them with the skills required by law to live independently and also for the aging out of foster care population. The services Royalty House provides to the homeless youth population are 24 hour emergency shelter, transitional housing, residential substance abuse treatment for clients and their families, parenting classes, shelter for teen parents and their children, anger management classes, educational programs to obtain a GED, workshops to learn a trade, classes to earn a degree, basic behavioral health services, and referral services for...
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...VALUES AND ETHICS INTRODUCTION Values and ethics are central to any organization; those operating in the national security arena are no exception. What exactly do we mean by values and ethics? Both are extremely broad terms, and we need to focus in on the aspects most relevant for strategic leaders and decision makers. What we will first discuss is the distinctive nature of ethics for public officials; second, the forces which influence the ethical behavior of individuals in organizations; and third, explore the actions strategic leaders can take to build ethical climates in their organizations. THE CHARACTER OF VALUES AND ETHICS Values can be defined as those things that are important to or valued by someone. That someone can be an individual or, collectively, an organization. One place where values are important is in relation to vision. One of the imperatives for organizational vision is that it must be based on and consistent with the organization's core values. In one example of a vision statement we'll look at later, the organization's core values - in this case, integrity, professionalism, caring, teamwork, and stewardship- were deemed important enough to be included with the statement of the organization's vision. Dr. John Johns, in an article entitled "The Ethical Dimensions of National Security," mentions honesty and loyalty as values that are the ingredients of integrity. When values are shared by all members of an organization, they are extraordinarily...
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...Summary The American Mental Health Counseling Association Code of Ethics was developed to set standards and guide mental health counselors in ethical decisions. There are six section in the Code of Ethics, categorizing commitments to different people within the counseling profession, including the clients, other professionals, students, supervisees, employees, the profession and the public (American Mental Health Counseling Association, 2010). There is, also, a section on resolving ethical issues (American Mental Health Counseling Association, 2010). Section I addresses the commitment to the client. This section has six subsections. Section I.A states that within the counselor-client relationship, the counselor needs to value objectivity...
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...SOCIAL RELATIONSHIPS of MARKETING and ANALYTIC DIMENSIONS NICOLE GAJADHAR ALGOMA UNIVERSITY SOCIAL RELATIONSHIPS of MARKETING and ANALYTIC DIMENSIONS Summary Any business, in order to be successful must have market researchers to analyze behaviors and actions of consumers. Without market researchers it is impossible to maintain a good business to consumer rapport. Businesses to consumer relationships are misunderstood because the dimensions of characteristics such as competence are not explained thoroughly in marketing research. This article identifies the characteristics and relationships between, “communication, trust, commitment, satisfaction and conflict handling” (Malhotra, Agarwal and Du Bisi 2010, p.20) along with a hypothesis created by the authors. The research paper attempts to prove how successful relationship marketing strategy must require an understanding of social dynamics to achieve customer satisfaction. I chose this article because I like how the authors gave thorough explanation of key characteristics behind why retail industries may lack positive business rapport and knowledge on customer satisfaction. Furthermore, I like the evaluation of content for the hypothesis and its findings displayed in the integrated model shown in the article. It explains how each social characteristic is related and how it leads to positive and negative behavior of customer satisfaction and (or) dissatisfaction. Evaluation Customer Satisfaction can be achieved multiple...
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