...Running Head: ETHICAL ISSUES IN BUSINESS 1 Ethical Issues in Business Dxxxxxx Student ID: 000XXXXX WGU 04/22/13 ETHICAL ISSUES IN BUSINESS 2 Abstract This paper examines social responsibility issues within Company Q and offers ideas for areas of improvement. ETHICAL ISSUES IN BUSINESS 3 Corporate social responsibility is a double edged sward. On one edge is the corporation’s social responsibility to its shareholders, employees and suppliers to avoid business activities that reduce the financial success of the company. On the other edge is the public good. (Duff) Companies are often torn between the need to be competitive and successful and the expectation to be socially responsible. A company that is socially responsible conducts business ethically and is philanthropic while remaining profitable. Economic responsibilities include producing desired, quality goods and services at a reasonable price, while providing profits for shareholders. Companies also have legal responsibilities to comply with all laws and regulations. Lastly, successful companies support philanthropic activities and organizations that promote human welfare and goodwill in the communities they serve. Company Q is making business decisions based solely on profit. Their current attitude toward social responsibility is affecting their profitability and damaging the community’s perception of their business. Company Q is attempting...
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...Licensed to: iChapters User Licensed to: iChapters User CONTEMPORARY AUDITING REAL ISSUES & CASES MICHAEL C. KNAPP SEVENTH EDITION MAKE IT YOURS! SELECT JUST THE CASES YOU NEED Through Cengage Learning’s Make It Yours, you can — simply, quickly, and affordably — create a quality auditing text that is tailored to your course. • Pick your coverage and only pay for the cases you use. • Add cases from a prior edition of Knapp’s Contemporary Auditing. • Add your course materials and assignments. • Pick your own unique cover design. We recognize that not every program covers the same cases and topics in your auditing course. Chris Knapp wrote his case book for people to use either as a core e book or as a supplement to an existing book. If you would like to use a custom auditing case book or supplement the South-Western accounting book you are currently using, simply check the cases you want to include, indicate if there are other course materials you would like to add, and click submit. A Cengage Learning representative will contact you to review and confirm your order. G E T S T A R T E D Visit www.custom.cengage.com/makeityours/knapp7e to make your selections and provide details on anything else you would like to include. Prefer to use pen and paper? No problem. Fill out questions 1-4 and fax this form to 1.800.270.3310. A Custom Solutions editor will contact you within 2-3 business days to discuss the options you have selected...
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...Exercise 1. MICROECONOMIC ISSUE Ethical Issues in Business. It seems that every day lately we are confronted with a new company that has acted at least unethically and possibly illegally in the operation and financial reporting of their company's business dealings? Briefly discuss one of these issues. How would you expect this to affect the equilibrium price and equilibrium quantity for this company's products and services? Is the elasticity of demand or supply affected? What about the effect on production levels and costs? Are ethical issues more likely to occur in one market type rather than another market type? You don't have to cover all of these topics. Ethical Issues in Business. It seems that every day lately we are confronted with a new company that has acted at least unethically and possibly illegally in the operation and financial reporting of their company's business dealings? Briefly discuss one of these issues. How would you expect this to affect the equilibrium price and equilibrium quantity for this company's products and services? One of these issues is the over reporting/ under reporting of net income. The company management seeks to show that every quarter the net income of the business has grown. In order to show this they adopt unethical means/illegal means in the operation and financial reporting. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate...
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...310.2.1-05 Ethical Issues in Business – Company Q Ethics is a part of life and it is a crucial aspect of our existence that keeps our world under a certain level of control. Ethics can be evident in personal behavior as well as business. Ethical decisions in business can have a profound effect on both the business entity itself as well as the communities it conducts its within. Company Q is a company that appears to be in a difficult position as are many companies similar to it. Company Q is a small company located in only one metropolitan area so in order to grow they are forced to make decisions in the best interest of the company, however they must also make their decisions ethically in order to expand their customer base and maintain a positive reputation at the same time. There are many challenges ahead of company Q to ensure their growth, such as providing quality products to their customers. Health conscious and organic products are becoming increasingly more important to most shoppers and Company Q has been asked for a long time to provide such products. They are doing the correct thing by finally selling healthier products in their stores not only for their customers well being, but also their financial well being since there are higher margins for them on the health conscious and organic items they offer. Company Q should also begin to offer a greater variety of health conscious foods to show that their customers are important to them. Ethically Company Q does appear...
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...advisory services. discuss at least four types of relationships and possible conflicts an accountant faces in performing the above roles How soft skills can boost your career Former Harris Scarfe officer jailed The Ford Pinto Nestle Milk Powder Exxon Oil Company Jacinta faces distress in the office what circumstances apply professional judgement Module 2 Accoutants,ethical issues and the corporate governance context apply the code's conceptual framework approach to explain threat to independence Arthur Andersen and auditor independence accountant no experience,what he should do to perform audit The cautionary tale of Jose L.Gomez contact or obtain professional clearance prior to accepting the appointment? fundraising for a charity,sole tax purposes,voilation of ethic? marketing professional services Explain why integrity is an essential attribute of the profession quality control, merger,not yet completed a review kitchen-tabling-Keith Purcell's earnestness Utilitarianism Does employer have a right to inquire your personal life-rights theory Cheating-the pressure on Pasquale Vialletta to succeed which stage of Kohlberg's of CMD best describes the decisionmaking behaviour of the general community of accountants? Six cures for current ethical breakdowns how to prevent bullying in the workplace,corporate culture,tough management style What reasons or factors can you think of that may cause an employee to compromise his or her personal ethics in workplace Why should accountants in business...
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...Q. 1. What is the difference between an ordinary decision and an ethical one? Q. 2.Why study business ethics? Q. 3. What is the primary objective of U.S. antitrust laws? Q. 4. Why was the Sarbanes -Oxley Act enacted? Q. 5. What is the difference between athical delama and ethical Q. 6. When do you consider insider trading legal? Q1. Ordinary decision does not have ethical decision tied in to it. Which means the ordinary decision does not have much effect as making ethical decision. The Q2. It is important to study business ethics, because businesses should believe in hiring good people with strong ethical values. It should be considered as part of the companies assets. Individuals personal values and morals plays a factor in the ethical decision making process. Even in life decision makings is applied on how you distinguish everyday ethical issues from the business spectrum. Q4 The big companies “BIG FIVE” led the Congress to pass the Sarbanes-Oxley Act in 2002 due to address the loss of confidence in financial reporting and corporate ethics. The intention of this act is to change organizational control and accounting regulations. What happened was, the accounting firm, was convicted of obstructing justice after shredding documents related to its role as Enron’s auditor. The reputation of the firm, ultimately went out of business. The Sarbanes-Oxley Act and the FSGO have institutionalized the need to discover and address ethical and legal risk...
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...Culture and Values for an Ethical Workplace FOURTH QUARTER–2009 Whether in domestic or global companies, ultimately, the commitment to business ethics and the foundation is built through organizational culture, with ethical values reflected in the workplace. Business Ethics: The Role of Culture and Values for an Ethical Workplace Abstract An ethical workplace is established through an organization’s culture, values and leadership. To promote ethical behavior, human resource professionals, people managers and senior management need to be knowledgeable about business ethics—from leadership, codes of conduct and related legislation to compliance training, ethical decisionmaking, and cultural and generational differences around ethics. Transparency, fairness and communication are key for establishing and maintaining an ethical workplace. Introduction In the business world today, issues of trust, respect, fairness, equity and transparency are gaining more attention. Business ethics includes organizational values, guidelines and codes, legal compliance, risk management, and individual and group behavior within the workplace. Effective leadership, with open dialogue and thoughtful deliberation, develops the foundation of an ethical workplace, is woven into the fabric of the organizational culture and is mirrored in ethical decision-making. Toward this end, all organizational leaders have a key role in establishing corporate values and modeling ethical behavior for their workforce...
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...Ethical Analysis of Company Q Business ethics is defined as the choices and actions businesses make that reflect their values. Not only are businesses expected to perform in a manner that benefits their stakeholders and shareholders, there is now an expectation that businesses will support the communities in which they operate. Company Q is a small grocery store chain operating in a major metropolitan area. A recent analysis of its ethical culture shows there are areas that could use improvement. Recently, the company decided to close several stores. These stores were located in areas of the city considered to be high crime and the stores consistently lost money. While this can be considered an ethical decision because it protects the profits of the company, many may not see it that way. Many may view this as an unethical decision because closing the stores affects the community in which they operated. The decision to close the two stores affects not just the company but supplies, contractors, and increases unemployment. The decision also affects the community because of lost taxes, which pay for community programs and improvements. Business must take into consideration all of these factors. In addition to closing these stores, Company Q is also taking steps to retain consumers while increasing profits. The company has decided after many requests to begin carrying high margin organic items. This decision is beneficial to Company Q in two ways. First, the new organic...
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...Company Q: Social Responsibility Social responsibility is critical to an organization’s future. An organization should focus on having a positive image and reduce any negative impacts on stakeholders. A socially responsible company will maintain a good reputation with all of their stakeholders. Social responsibility follows several guidelines; ensuring profitability, maintains a legal structure, abides by ethical standards, and engages in philanthropy. Company Q does not engage in a very positive social responsibility. The company had two of their grocery stores located in areas with high crime rates. Because of this, they eventually had to close down both of the stores, resulting in a decrease in profits and disappointed loyal customers in the area. Company Q also lost out on profits when they decided to put a limited amount of their new healthy and organic items on the shelves. Although the new items were high margin, they did not benefit the company because there was only a limited amount being offered to customers. As far as philanthropy, Company Q does not provide donations to the local food bank in order to avoid possible fraud or theft from their employees, causing them to lose out on a good public image. If fraud or theft occurs in the company, it goes against the legal structure that the company is required to have. Based on the fact that the company is worried about legal issues which prevent them from making donations, it is clear that the company lacks ethical...
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...Objective 310.2.1-05: Ethical Issues in Business Blake Richey WGU Student Objective 310.2.1-05: Ethical Issues in Business A local business can grow successfully if proper care is taken regarding its public image and worth. Every misstep will be magnified and scrutinized within the community. When a business forgets it ethical duty to be socially responsible, it can lead to negative effects not only within the company, but also within the community it participates in. We will look at Company Q’s current attitude toward social responsibility and how it can make an immediate and resolute improvement. Evaluation of Company Q’s Social Responsibility – Task A Company Q’s current attitude toward social responsibility is bleak. It does not seem to have any trust in the community nor its employees. The book defines social responsibility as “an organization’s obligation to maximize its positive impact on stakeholders and to minimize its negative impact” (Ferrell, Fraedrich, 2010, p. 12). I would expand further to say it includes the ethical duty to the community and everyone the company comes in contact to. Their errors and lapse of judgment are not difficult to assess. The company must make a more conscious effort to revive its attitude toward social responsibility. 3 Areas for Company Q to Improve its Social Responsibility – Task B Many restaurants and food service related business find it not only rewarding, but also beneficial to donate unused food at the end of business...
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...Company Q is a small grocery chain that has a few local locations. Events in the past have led to the grocery company being deemed less than acceptable when it comes to social responsibility. Because a few of the store locations were reporting a loss in money the company decided it was in their best interest to close the locations, which were in high crime areas of the city. A local food bank recently requested that company Q donate their day-old products to help the needy, rather than throwing them in the trash. The manager of the company was quoted saying that they would rather throw away the food, instead of donating it, because they were concerned that the employees might steal and cover it up by saying that they were going to donate the food. Also, the community has been expressing an interest in health conscious food which the company has a limited stock of available. Unless company Q wants to close down more of its stores they need to make a change and become more socially responsible. The first step in making this change would be to have the board members review their ethical expectations and core values that the company was founded on. Next, they should look inside the company and find someone that they think is a good example of those core values and promote them to ethical officer. This newly created position would be responsible for overseeing the ethical culture of company Q. An ethical culture should be introduced into the company in order to cut back on the...
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...In today's fast-changing business world, companies are facing multiple new environmental, social, and cultural challenges that in large part determine their capacity to establish, maintain, and protect their business, and to deliver sustainable growth to benefit all (Quinn, 2013). Company Q, a small local grocery chain, trying to survive in a thriving metropolitan area, is in the midst of those challenges. Part A: Based on the given scenario, evaluating Company Q's attitude toward social responsibility, is best achieved by identifying how the companies commitment, or lack thereof, is in line with the four aspects of social responsibility: economic, legal, ethical, and philanthropic. Economically, Company Q has shown little interest in being social responsible. At the most basic level, all companies have an economic responsibility to be profitable so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy (Ferrell and Pride, 2006, p. 91). Company Q has closed two stores in high-crime areas stating that these stores were continuously losing money. It was not stated why the stores were losing money or if the company took any measures to prevent the loss of profits. The closing of two stores, without taking proactive measures to regain profits, not only affects Company Q's future profits but also has a negative effect on the community in which the stores were located. The loss...
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...Social Responsibility and Company Q Abstract Business have a substantial responsibility to the communities in which they operate. Ethical decisions about community service and dedication fall on every business owner and its associates every bit as much as individual citizens. Ignoring issues facing a neighborhood is folly and causes companies to miss many opportunities to establish relationships, network and grow. This subject has gained an incredible audience in recent years and continues to spark conversation and debate among business leaders, government officials and everyday citizens and consumers. No matter which ethical decisions are eventually made, it is undeniable that corporate social responsibility is a concept that is here to stay and promises true progress and discovery when treated with due respect and taken earnestly. Keywords: business ethics, social responsibility Social Responsibility and Company Q Social responsibility is more than likely one of the most appropriately phrased concepts in business. The expression denotes an obligation rather than a mere suggestion. This obligation can be demonstrated by businesses, no matter their size, in a variety of ways. A company who yields a healthy social responsibility forges a sound relationship by giving back to a host community as a show of gratitude and mutual esteem between a company and the society who perpetuate it. Attitude toward Social Responsibility Company Q, though small, still has a responsibility...
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...Responsibility In today’s world many companies deal with social responsibilities on a daily basis. In my term, social responsibility is the way a company positively impacts its employees, customers, community and investors while minimizing negative impacts on them. In this scenario Company Q would seem to think they have ethical issues. My time in business I have learned that ethics drive culture, culture drive behaviors, and together they drive great results. Having an ethical practice is critical in bringing a business to becoming and staying successful. Knowing Company Q’s scenario, there are many areas in which they are associated with business ethics and social responsibility. Here are a few of the areas that will be discussed about Company Q and its social responsibility. Each area will be discussed more in depth. First off, Company Q’s decision of closing down various stores in high crime areas due to these stores consistently losing money. Second, after years of requests from customers, Company Q began to promote healthy and organic foods at higher margins. Third, Company Q has decided not to contribute its day old products to local shelters and food banks. The three actions mentioned above may cause consumers to believe that Company Q’s social responsibility is not very satisfying. Many may see these as areas of opportunity from opinion basis and personal feeling reactions as appose to seeing the facts in why Company Q has made these decisions. Even with that...
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...Company Vision Company Q’s responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making Company Q a truly sustainable company Build Trust and Credibility The success of our business is dependent on the trust and confidence we earn from our employees, customers and shareholders. We gain credibility by adhering to our commitments, displaying honesty and integrity and reaching company goals solely through honorable conduct. It is easy to say what we must do, but the proof is in our actions. Ultimately, we will be judged on what we do. When considering any action, it is wise to ask: will this build trust and credibility for Company Q. Will it help create a working environment in which Company Q can succeed over the long term? Is the commitment I am making one I can follow through with? The only way we will maximize trust and credibility is by answering “yes” to those questions and by working every day to build our trust and credibility. Respect for the Individual We all deserve to work in an environment where we are treated with dignity and respect. Company Q is committed to creating such an environment because it brings out the full potential in each of us, which, in turn...
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