...Ethics Ethics in a corporation is a matter of following the rules and conditions of the company sponsoring one for employment or doing business with different corporations. The corporations have to keep in mind that any actions or decisions they may take if for the worst to the better it will affect the company as a whole, the stakeholders, and the employees whom it involves along with other businesses that are associated with the corporation. It is mainly the social responsibility of the corporations to make such decisive actions toward the company. Ethics and Social Responsibility in Strategic Planning Ethics and social responsibility are similarities to one another in different scenarios when having or developing a strategic plan. When a corporation goes through various decisions that have to make an action toward a situation, it needs a strategic plan because it does affect the employees, the corporations as a whole and the corporation’s stakeholders. When deciding about strategic social responsibilities it “means going beyond the letter of the law to truly accomplish good in the world and reduce the negative impacts of doing business”(Ingram 2012). Ethics of course takes the big understood as the rights of doing something accordingly that will be beneficial for the whole. According to Aminah Abdullah: “Ethics refer to the fundamental principles of an individual or a group. Social responsibility is how a business...
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...Week Two Learning Team Reflection There are several things that we discussed in week 1 and week 2 giving us a better understanding of basic components of business research. This week had shown us what to look for the issues in America, showing how these issues have an impact on business in America. As the issues arise companies look for a way to solve those issues and tools such as business research was one of those tools these companies used to better make choices in order to determine what is best for the company. By doing so the companies also are weighing the pro, cons and ethics of each to ensure that the foundation of the company is better. The business ethics is a main art in order for a company to run and create a revenue, without valid behave and having unethical behavior it creates a tear in the company, creating a refit and causing much to be disregarded in business research. Thus stating that the stages of business research must be attained to at all times to hold employees and the company accountable for unethical business choices as well as giving the company a chance to better increase its revenue and company outlook. These steps are clarifying the Research Question, Proposing the Research, Designing the Research Project, Data Collection and Interpretation, and Reporting the Results. These stages help me better understand how the business research better works. These past two weeks have shown me many things in research so that I am better able to conduct...
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...Effect of Unethical Behavior Article Analysis Travis Murphy ACC/291 August 17 2013 Professor Kelly Bair A very common example of an unethical accounting practice is the misrepresentation or false recording of figures. Accountants will do this to cover up situations and complications that have hampered the company. Accountants believe that the occurrence or occurrences will soon improve so that falsifies the numbers to put a band aid on the wound until it hopefully heals. What occurs sometimes though is if the numbers were recorded accurately and were communicated through management, the company would most likely recover sooner. If the band aid is put on the issue for an extended period of time there might be no recovery from the issue and the accountant could be fired, or worse, the company could go under. Another situation for misrepresentation of figures could be from hiding money, which is fraud, in relations to taxes or personal gain. The consequences for this are of course a hefty fine and imprisonment. Companies do this very frequently but not all get caught. Companies and accountants will do this to try and squeeze every dollar into their budget and in to their pocket at the end of the year. But thanks to the Sarbanes-Oxley Act of 2002 accountants and company have no choice but to be more accountable for their actions. “Since its enactment in the summer of 2002, the Act has effected dramatic change across corporate America and beyond, and is helping to...
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...Culture o There is a lack of leadership and structure from management that is causing doubt and ambiguity among the company. o There is not a comfortable working environment that allows an employee to feel safe or secure with their thoughts or concerns. o Management was demeaning and condescending; often making threats and harsh remarks to employees. • Rapid Expansion o There is a poor growth strategy, which had led to a hodgepodge of new companies along with their employees and different management customs. o The acquisition process has a weak integration process to incorporate the new companies. This has caused disorganization and inconsistencies in management. • Performance Pressure o Improper and unethical accounting procedures were made to help achieve targeted performance goals. o Employees in Finance and Accounting departments were bullied and into making corrupt entries and they were rewarded for their unlawful activity. • Internal Audit o The Internal Audit department had a limited scope of work and authority. o Reporting directly to CFO compromised Cooper’s ability adequately perform an audit without interference. Recommendations • Hire a strong Human Resources department to implement a proper code of conduct and company wide policies. • Establish implementation process to help streamline and coordinate efforts between existing and new companies. • Develop realistic target performance goals by incorporating forecasting and budgeting processes for future...
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... Stan Sewell paid $50,000 to have a business which allowed him to market software applications in the countries of the European Union. Sewell planned to sell individual companies for the main language groups of Western Europe-German, French, English, Spanish, as well as Italian. Obviously, investors thinking about buying a company from Sewell asked to see the financial statements of his organization. Supposing the price of the company to be $500,000, Sewell wanted to capitalize his own company at $500,000. The law company of St. Charles LaDue assisted Sewell create a corporation chartered to issue 500,000 shares of common share with par value of $1 for each share. Lawyers recommended the following series of dealings: a. Sewell's relative, Bob, borrows $500,000 from a bank and buys the company from Sewell. b. Sewell pays the corporation $500,000 to get all its shares. c. The corporation purchases the company from Cousin Bob. d. Cousin Bob repays the $500,000 loan to the bank. In the bottom line, Cousin Bob is debt-free and away from the picture. Sewell has all the corporation's shares, and the corporation has the franchise. The corporation's balance sheet lists a franchise purchased for $500,000. This balance sheet is Sewell's most effective marketing strategy. Requirements 1. What is unethical about this situation? 2. Who can be harmed? How can they be harmed? What role does accounting play? Business - General Business ACC306: Intermediate Accounting II Week...
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...Group Members Acknowledgements First of all I would like to thank all mighty Allah for giving me the courage and strength to complete this report. Then I would like to thank my course instructor Sir. MIRZA AKHTAR AHSAN, who gave me the opportunity to apply what I have learned in the course in a practical manner. He was the one who helped me in understanding the course very well. Without his guidance the report would have not been possible. I would also like to thanks Mr. Hassan Ameen, the owner of Cherry International in co-coordinating with us. Introduction [pic] Cherry International was established in 1978 in Karachi to produce yarn, all for export to Japan, Europe and United States of America. Yarn was exported to the Far East. In 1981, Cherry International began to produce poly cottons and poly viscose for the local market. From 1983-1991, it catered to the domestic market only, because of heavy import duties on fiber. In 1994, synthetic and blended fabrics were exported. Cherry International believes that business relationships are built on the basis of trust and partnership. This is the maxim for their creative dialogues with clients, business friends and employees. Satisfied clients are our top priority. It is their objective to develop and apply new technologies in order that their clients have a competitive edge. Their client support services and product quality are a result of this strategy. Cherry International...
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...chapter one © The McGraw−Hill Companies, 2008 1 What Is Strategy and Why Is It Important? Strategy means making clear-cut choices about how to compete. —Jack Welch Former CEO, General Electric A strategy is a commitment to undertake one set of actions rather than another. —Sharon Oster Professor, Yale University The process of developing superior strategies is part planning, part trial and error, until you hit upon something that works. —Costas Markides Professor, London Business School Without a strategy the organization is like a ship without a rudder. —Joel Ross and Michael Kami Authors and Consultants Thompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 16th Edition M I. Concepts and Techniques for Crafting and Executing Strategy 1. What Is Strategy and Why Is It Important? © The McGraw−Hill Companies, 2008 anagers face three central questions in evaluating their company’s business prospects: What’s the company’s present situation? Where does the company need to go from here? How should it get there? Arriving at a probing answer to the question “What’s the company’s present situation?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strengths and capabilities, and its competitive weaknesses. The question “Where does the company need to go from here?” pushes managers to make choices about the direction the company should be headed—what new or...
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...all the aspects that a business requires. When building and maintaining a business, preparation is paramount to its success. To ensure that the business is well-established for success, certain factors must be considered. In building the business organization for the Ortiz Daycare, several things were considered in the planning stages, starting with organization of the details in setting up the facility to meet state standards. A budget for operational costs was set up to help control start-up costs of the business. The company vision was then established as a foundation for what it would take for the organization to succeed. With any new business venture there are legal and ethical issues to be considered. In order to help avoid the pitfalls that sometimes come with a new business, an employee handbook outlining the procedures and policies of the business will be created. This would help in making sure that the organization would not fall into any unethical or illegal practices. Maintaining the employee handbook, and updating it as needed, would allow for ongoing adherence to the procedures and policies. This will allow the business to create a professional culture where everyone is valued, and made to feel they are protected by the employer. In business, the credo “there is a culture like it or not.” (Dougherty 2014 HBR) definitely holds true. Part of the business model for the Ortiz Daycare Facility includes the culture that the business will run most effectively when...
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...Megan Mitchell March 14, 2013 XACC/280 Paul Gomez Internal Controls 2 In order to maintain a company’s security and accuracy, a company will take all related measures and measures adopted within an organization in the form of internal controls. Internal controls are an essential way to maintain conformity with other company’s, to safeguard assets from employee theft, robbery and unauthorized use, and enhance accuracy and reliability of it’s accounting records (Weygandt, Kimmel, & Kieso, 2008). Since major company’s such as WorldCom and Enron were able to commit such extreme measures of fraud, in 2002, Serbanes-Oxley Act (SOX) was passed by congress to ensure company’s enacted internal controls and required them to maintain an adequate system of internal controls (Weygandt, Kimmel, & Kieso, 2008). The SOX requires that all companies must develop sound principles of control over financial reporting, continually verify that the controls are working, and an independent auditor must attest to the level of internal controls. There should be physical, mechanical, and electronic controls so that when jobs are segregated, there are more than one opportunity for a final verification of accuracy (Weygandt, Kimmel, & Kieso, 2008). In years prior to the SOX, the heads of companies did not pay very close attention to the many individual jobs that were necessary to maintain an accurate accounting system. When a business allows multiple people...
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...Date: September 17, 2013 To: Dr. Grieshaber From: Cindy Huynh Subject: Assignment #1 – Societal Role of Business and Social Responsibility Oil & Gas Company Social Responsibility In today’s world it is no longer enough for a corporation to serve customers, employees, and shareholders. It is the responsibility and duty of a corporation to serve the communities where they do business and enhance competitiveness of the company while simultaneously advancing social and economic conditions. This concept is called corporate social responsibility. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members. Everywhere you look today you will see most big company have a team that dedicate exclusively to corporate social responsibility. Companies Corporate Social Responsibility can be easily seen on their websites. A formal statement or code of ethics summarizes corporate values, and expectations for many companies. The societal expectations on corporate social responsibility of businesses are increasing drastically. Corporate sector has been under pressure to implement environmentally responsible practices. Oil and Gas is top among those sectors. There have been a lot of concerns regarding the use of Hydraulic Fracking in the industry. Some of the concerns are that chemical could potentially leak...
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...$2.10 will result in a favorable price variance and offset an unfavorable price variance from another component. Should Pat offset the unfavorable variance, his overall performance report will qualify him for the annual bonus. Pat would also stand to receive an impressive performance rating which would help ensure a higher paid position at division headquarters. Although the outcome of the decision to use a cheaper component will benefit Pat's professional growth, the quality and reliability of both the new component and supplier are questionable. By the time the customers and company begin to suffer the repercussions, Pat will be reaping the benefits professionally. Pat’s company has set professional performance goals and a system of rewards that can be obtained by actions that are not in the best interest of the company. The dilemma being, simply, should Pat put his interests over that of his company? The supplier Pat is considering has a reputation of making deliveries on time for the first few months only. Although the new component, reportedly, has only a slightly higher number of defective units, the life of the component is 25% less than the standard. Pat sees very little personal risk as he expects his successor will be responsible for handling any problems associated with this decision. The primary stakeholders that will be affected by the decision are top management and/or owners of Oaktown Electronics Division, investors of Oaktown Electronics Division, Pat,...
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...------------------------------------------------- business and company law Section 228(1) of the Companies Act 2014 details the eight fiduciary duties directors of companies are obliged and compelled by law to comply with. The question is why it is necessary through the application of law to limit director’s decision making responsibility. The potential for directors to abuse their positions of power with regards to company’s assets in the daily running of the company seems limitless even when directors are in their own perception acting bona fides with regards to their decisions. Section 228(1) is so important and appropriate to business law as Directors are persons who according to Callanan(2007,p207) ‘have been entrusted with powers for the benefit of others’ but the potential to damage one person or persons to benefit another is so highly possible that the law is compelled to control directors decisions. Section 228(1) (d) addresses a directors duties ‘to not use the company’s property, information or opportunities for his or her own or anyone else’s benefit’. The case of Regal Hastings v Gulliver (1942) is one which has involved much debate throughout the years. The directors of Regal although acting in their opinion bona fides, through holding a position as directors were privy to information that, had they not held their position as directors would not have been able to benefit from the transaction that they undertook. The key point behind this case was that directors...
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...From: Manager Claims. Subject: A report on Fitness Center at Rocky Mountain Mutual, as a long term benefit and continuation of the fitness centre. Thank you for inviting me to prepare a report of the benefits of fitness center in our company. From last few year reports indicate that the Fitness Center has led to an overall decline in employee absenteeism, drop in employee medical costs, and an enhance in productivity. Therefore, I attached details of the report for your review and consideration of fitness center in our company. Executive Summary: The Rocky Mountain Mutual is growing insurance company, the newly established headquarter situated far from the city. Fitness centre has been motivational factor to our young employee to work in the company, in contrast other competitor don’t have any fitness center. A review of company report identified that the fitness center helped to drop employee absenteeism, reduced company medical cost, and increases employee productivity which lead the financial asset of the company. It is true that participation of employee in fitness centre is not satisfactory as per our expectation. Hope appropriate attention with key leadership support will make the fitness centre as a greatest asset of our company. Word Count-108 Table of Contents S. No. Contents Page Number 1 Situation Analysis 1-2 2 Problem Statement...
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...To what extent is CSR beneficial to a company’s performance? The area of corporate social responsibility has been laid great emphasis recent year. Corporate social responsibility means a company concerns its business operations in an environmental-friendly way and interacts with its shareholders and customers voluntarily (Commission of the European Communities, 2001, as cited in Dahlsrud, 2008). Nowadays a large quantity of international companies have issued their CSR report and designed separate websites about their CSR performance in order to run a better business. However, opponents believe the relationship between CSR and company’s performance is neutral (Aupperle, Carroll, & Hatfield, 1985) and CSR’s benefit to a company’s performance is not obvious. As a matter of fact, even CSR performance can’t be measured easily and numerically in most cases, its benefit to a company’s performance is significant. In this paper, the elaboration will cover three most important dimensions: brand value enhancement, employee attraction and consumer relationship nurturance. To begin with, brand value will be enhanced by CSR performance. The study result of Melo and Galan (2011) shows that CSR has a positive impact on brand value. They chose a group of American corporates as target. Meanwhile, they set CSR and brand value as control variables and build a model to set up a connection between them. The numerical result shows the positive correlation of CSR performance...
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...of Fayol’s principles of management are as relevant and useful as they were when published in 1916. The principles are duplicated below from table A.I (Bateman & Snell, 2013, p. 39). 1. Division of work – divide work into specialized tasks and assign responsibilities to specific individuals. If we didn’t adhere to this principle there would be chaos. Imagine accountants assigned to a production line and vice versa. This situation would be neither productive nor efficient. 2. Authority – delegate authority along with responsibility. A manager must be allowed to make a decision in order to be responsible for the outcome of the decision. 3. Discipline – make expectation clear and punish violations. Each position in a company should be clearly defined. When an employee acts outside of their assigned role or duties, a manager should point the out the discrepancy. This will keep operations running smoothly and efficiently. However, acting outside of an assigned role could be viewed as initiative (see 13, below), which is also one of Fayol’s principles. 4. Unity of command – each employee should be assigned to only one supervisor. Adhering to this principle...
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