...Effect of Unethical Behavior Analysis Unethical behavior is an action that does not follow the approved standards in someone social or professional behavior, and business practices. This mainly includes the ability to take advantage of another without them having knowledge or giving consent. Unethical behavior or unethical practices is a form of manipulation on something or someone without their knowledge or permission. Unfortunately unethical behavior is very common in the social world but even more common in the business or professional setting. When it comes to a business or organization people find it hard to believe that unethical behavior is being committed, especially in an organization that is well known in the community. There are several reasons that can encourage unethical accounting practices or behavior in organizations, but the most common reason would most likely be money. Accountants are paid professionals that work for an organization or is hired outside the business to perform services such as: audit and assurance, consulting, deals, financial advising, tax accounting services, and so much more. These services are imperative for an organization to maintain good business accounting and good strategic planning of the business finances. Since individuals in the accounting profession have such a considerable amount of responsibility to companies and to the public, there has to be a level of confidence in the knowledge and the behavior of accountants. However...
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...Unethical Conduct Michael Roberson RES/351 April 17, 2014 Deborah Levin Unethical Conduct The ability to report unethical conduct has flourished in the business research community. In Marketing, salespeople among groups demonstrated the lack of personal ethical judgment when unethical conduct was linked to personal, ethical perspectives. The purpose of this essay is to discuss unethical behavior as it affects a salesperson. Individuals have a different approach to marketing because of its blinding effect on the points of levels. The personal, ethical perspective of a salesperson is philosophical. In an organization, unethical behavior is a rule that is administered by the organization for the purpose of communicating marketing strategies. This rule applies under a code of ethics that involved taking surveys from the organization, the individual, and society. The survey is designed to simulate the unethical behavior situations that grow over the amount of sales a salesperson receives from merchandise discounted without management approval. The importance of the survey identifies the salesperson in the organization, but in an organization, society portrays each as a component. The salesperson encounters the decision that stems from unethical behavior. Ethical pressure is mostly the work group that becomes the next level. The unethical behavior could be avoided by not following the organization's rules (Ferrell, Johnston, & Ferrell, 2007)...
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... 2 The medical field is one that unethical research happens. The way it happens is when doctors or hospitals publish findings in some area but they do not research other results for the same test. In the article titled “The highly profitable but unethical business of publishing medical research”, it discusses how to make money in the medical field companies do not complete research and just publish information without the complete facts that accompany it. The reason publishing medical information without the complete research is unethical is because it can cause great damage to the consumer reading the report. It is also a problem because it means that the researchers in charge of looking up the right information are not doing their job. A better way to understand it is by know what unethical behavior is. According to smallbusiness.com, “Unethical behavior in business runs the gamut, from simple victimless crimes to huge travesties that can hurt large numbers of people. Whether it is stealing a pen, padding an expense report, lying to avoid a penalty or emitting toxic fumes into the air, unethical behavior cannot be condoned by a company. A strict ethics policy is the cornerstone for any business that wants to maintain a good reputation” (). In the article there are several issues presented. The first one is the lack of information, that is the primary unethical behavior involved in the case. The reason it is unethical is because in the medical field the medicines...
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...1 Unethical Business Practices 2 Unethical Business Practices Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Ethical and unethical business research practices have an effect on the organization as well as the public. From an unethical standpoint development in technology, medicine, and many production lines may harm people if there is a lack of honesty or deception in the results from research. De Beers is the world’s largest diamond producer. De Beers has been charged with price-fixing and other anticompetitive conduct. Under scrutiny since World War II for refusing to provide industrial diamonds for the war effort they were forced to leave the American market. In 1994, an indictment was filed against the De Beers Diamond Company for violating the Sherman Antitrust Act by fixing the price of industrial diamonds. In this indictment the Government contended that the subsidiary company General Electric (G.E.) conspired with De Beers to fix the price of industrial diamonds. These acts that De Beers were accused of were unethical because being the world’s largest diamond producer they were able to control the market and keep the prices high by making the world believe that diamonds were scarce. The purpose of...
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...Ethics of Marketing to Children: The Unethical Side The Ethics of Marketing to Children: The Unethical Side The Ethics of Marketing to Children: The Unethical Side Contents Introduction: What is Unethical Marketing? 2 Why are Children Targeted? 3 How are Children Targeted? 4 Nag Factor 4 Psychology 4 Brand Loyalty 5 Buzz Marketing 5 The Internet 5 Technology 6 Sexualisation of Children 7 Case Studies 8 Jours Après Lunes 8 Pink 9 Conclusion: What can we do? 10 Bibliography 11 Introduction: What is Unethical Marketing? Unethical marketing is a complex topic. Whether practices are considered ethical or not can be openly discussed and examined. It is not until we have a clear understanding of what ethics is that we can begin to examine the unethical side of marketing. Ethics is known as the study and the philosophy of human behaviour, with an emphasis on the determination of right and wrong. For a marketer it refers to rules, such as standards and principles, and the significances of marketing decisions (Ferrell, 2005). Ethical marketing can be defined as “practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders” (Murphy, Laczniak, Bowie and Klein, 2005). If ethical marketing seeks to promote honesty, equality and responsibility, therefore unethical marketing endorses a dishonest, deceptive...
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...Effects of Unethical Behavior Article Analysis ACC/291 Principles of Accounting II (AXIA) November 12, 2012 Effects of Unethical Behavior Article Analysis The impact of unethical accounting behavior can be devastating, often leading a company to closure or bankruptcy. Some examples of internal unethical accounting practices include under and overstatement of expenses, revenue, liabilities, and corporate assets, misuse of capital (possibly for personal gain), etc. Examples of external unethical practices would include fraud regarding trade and investment, bribery, and kickbacks, and manipulation of financial market regulations. Enron Corporation is one of several companies who have committed unethical and illegal accounting actions. Enron started in the 1990s in Houston, Texas. This American company concentrated on the energy sector. In the highlights of Enron’s success, it has about 21,000 employees and considered the leading supplier of electricity, natural gas, communication, and paper. Enron’s perceived success was a mask for the cast schemed fraud called the “Enron Scandal” (Kadlee et. al. 2002). Enron Corporation not only committed financial fraud but also may have been brining people for contracts on South America. Later, this accumulated, and reports started to appear regarding the fishy accounting structure of Enron and its partner in crime, Arthur Anderson (accounting firm). Consequently, Enron resulted in bankruptcy. This bankruptcy would be the world’s...
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...Effect of Unethical Behavior Article Analysis Numerous professions are probable for unethical behavior in the place of work. The bookkeeping occupation precisely can have a massive influence on an institute. In various circumstances this power can distress other businesses and also the over-all community. Unethical behaviors in the accountant business are often challenging to identify. An accountant is good in what they do. They transfer money to their own bank account from the company account without anyone knowing. These actions also include bribes, insider swapping, misappropriation, and corruption. Also the furthermost things are exploitation of money and giving false material on business reports for private expansion. A lot of of the matters we go through with the present economy are responsible for the unethical conduct in the accounting business. Two of the well-known corporations that were finally jammed and arraigned for unethical conducts were Enron and WorldCom. The misrepresentation of business statements and deceitful commotion in the stock market affects thousands of stakeholders to miss money. Throughout this humiliation, a hand full of people in this company was making millions of dollars from other people expense. The Sarbanes Oxley Act of 2002 or frequently mention as Sox is known as Representative Michael Oxley and Senator Paul Sarbanes. Sox were announced to law in 2002 with the new rule guidelines concerning the approaches of economic procedures...
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...Running head: IMPACT OF UNETHICAL BEHAVIOR ARTICLE ANALYSIS Impact of Unethical Behavior Article Analysis Donna Sutton University of Phoenix Financial Accounting II ACCT 363 VERN May 09, 2010 Impact of Unethical Behavior Article Analysis The impact of the financial crisis created by such companies as Enron gave a reason for Congress to address some of the unethical practices of accountants. The American public no longer trusted accountants after losing retirements and life savings after making investments in companies that were reporting false financial statements. President George Bush signed the Sarbanes-Oxley Act into law in 2002 to try to avert any future dealings of an unethical nature (Dummies.com) The Sarbanes Oxley Act states that companies must enact internal controls to counteract fraud, deceit and wrong doing by its auditors, CEO’s, financial personnel, and accountants when reporting the financial statements for their companies. CEO’s can no longer say they were unaware of deceitful financial statements. They will be held responsible for the company’s financials and also be penalized. This act will prevent companies from reporting inaccurate financial statements to the public and allow Americans to make informed investment decisions from accurate financial statements. Confidentiality is a huge concern for clients of companies. This issue was addressed in Ruling 112. A client is now given the choice of sharing their information with other companies...
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...HealthSouth, the nation's largest provider of outpatient surgery and rehabilitative services, was founded in 1984 by Richard Scrushy and co-founder Aaron Beam. HealthSouth was involved in a corporate accounting scandal in which Richard Scrushy was accused of directing company employees to falsely report grossly exaggerated company earnings in order to meet stockholder expectations. Revenues continued to grow to more than $3.5 billion allowing Scrushy and Beam to enjoy the lifestyle that accompanies corporate success. Then everything changed when, in 1996, the company’s earnings fell slightly short of its goal. According to Beam, Scrushy ordered the books to be fixed. Beam explained, "HealthSouth was a very viable company," Beam explains (2012), "Our earnings projection was just shy of what Wall Street was expecting in 1996 - we were 90-95% there. When it got to the point that we couldn't legitimately make our numbers, Richard couldn't accept that. He's such an intimidating person and led the company as a maniacal dictator. He convinced us to fudge that 5-10% so we would make our numbers. He made us believe that we’d make it up in the next quarter. Unfortunately, my lead accountant said he thought he could make the entries and hide them from the auditors, and Richard said, ‘Let’s do it.’ The correct thing to do was to say no to him, stand up to him, but I didn’t. Obviously, I was weak of character.” Beam’s actions were not uncommon to say the least. Many business professionals...
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...Effect of Unethical Behavior Article Analysis February 25, 2013 ACC/291 After the unethical acts of two famous companies Enron and World Com congress passed the Sarbanes-Oxly Act in 2002. This legislation was put in place due to the companies cooking the books and making the company look better financially then they really were. This defrauded a lot of public investors and thus the act came in to being to protect the public from scandals like this. To do this it called out for stronger internal controls, outside auditors, and protection for people who witness and had information that an employee is practicing unethically and allowed for the employee to become a whistle blower. This law also made the CEO and CFO of a publicly traded company responsible for the accuracy of the financials or stiff fines or imprisonment was possible. The government forced ethics of finances and record keeping which was indeed needed to steer companies back in the right direction and protect investors as well. As the years have passed on since the act was put in place there are companies that actually teach ethics to employees. Human Resources are conducting test that will show a persons moral or ethical stands on things before they hire the individual. Employee handbooks have clear guidelines on what is acceptable ethical behavior and those that are not and punishment for infractions. The Sarbanes-Oxly act does cost a company more to keep themselves...
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...Are you Persuaded? Yes, persuaded to use the internet as a resource and totally agree with it needing to be cited just like text books need to be sited when used as a reference. The internet holds a world of information and is characterized by constant change, and getting data that is current, correct, and resourceful is becoming increasingly popular by using this source. It is this reality of continuous change that places the extreme demands for the information that is posted on the internet today. Ethical or Unethical The available use of information on the internet is becoming a big business and constantly evolving. Individuals or companies posting information for resource purposes to educate or inform the user is not unethical. Presenting the information as your own words or idea is unethical. The main reason a lot of consumers turn to the internet is that they perceive it as a place where they can research information, build ideas, and compare information with their text books for added measure. The internet is a learning tool that is used with the text book to educate and inspire students. Ultimately, it is the student’s responsibility to use the information found wisely and site all known and unknown resources properly. Distant learners Use of the internet can provide opportunities for distant learning. Students and teachers can network, study, and collaborate with others around the world. Teaching strategies can be shared through communication...
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...Impact of Unethical Behavior Several key concepts of ethics in accounting and financial decision-making are trust, confidentiality, collaboration, and a code of ethics. Trust and confidentiality go hand-in-hand in business accounting because trust is essential if a company wants loyal customers. Confidentiality is also an integral aspect of financial dealings because privacy is often a concern for many companies and customers. Collaboration is another area of financial decision-making that is relevant because ethical practices promote collaboration. A code of ethics is necessary in accounting and financial decision-making because it provides guidelines and standards for employees on all levels. The Sarbanes-Oxley Act of 2002 was passed in response to the financial scandals such as Enron and WorldCom, and it inevitably had a strong impact on accounting and financial decision making. This law required publicly traded companies to be much more accountable for their finances. The Sarbanes-Oxley Act set new regulations and penalties for public companies to provide investors with security. This act also caused the creation of the Public Company Accounting Oversight Board, or PCAOB, which is in charge of overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. This new law impacted accounting and financial decision making, because it required companies to be responsible for their financial decisions. It also regulated the...
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...Nike Inc. Nike’s Unethical Business Practices Nike’s Unethical Business Practices Love those Nike shoes your wearing? Have you ever thought how they were made, who made them, and at what price they were made at? I bet you probably don’t. I bet that you see those Nike shoes at the store, and think to yourself, “oh I like those shoes, I have to have them,” and then buy them. What you don’t know is that those pair of shoes you just bought were probably made in a third world factory by employees who are probably working in harsh working conditions. These factories are not owned and operated by Nike, but contracted by Nike. Nike chooses to locate the majority of their production in such countries because of the abundance of cheap labor. Nike contracts factories around the world in effort to get the best product for the cheapest price made, without concern for contracted factory employee. Nike has not been concerned about what goes on in these factories only that the product is made, because Nike is not in the business for Human Rights, they’re in the business of athletic shoes sales. The Ethical Dilemma Nike has been accused with human rights violations. The charges that were made against Nike include the following: the use of child labor in factories, unsafe working conditions including exposure to toxic chemicals and the use of machinery without the proper safety precautions, pay below minimum wage and forced overtime hours. The contracted factories Nike uses to produce...
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...UNETHICAL CONDUCT For the topic of exploring the ethical conduct in the world of business, we are encouraged to discuss a legal case that includes with it the court proceedings and the punishment that was dished out. For the sake of intrigue, I chose a case in which a very controversial punishment was given by federal prosecutors. In the wake of the 20 year surge in white collar crime…and after the dust settled from the Enron scandal & the Sarbanes-Oxley Act of 2002…there lies a handful of businesses that don’t seem to mind being unethical in a myriad of ways. The majority of the businesses in that group are in the banking business. My subject is Wachovia Bank, formerly one of America’s six largest banks by assets. In 2012, Wachovia completed what amounted to a year-long probation arising from a March 2010 settlement deal with federal prosecutors who were pursuing criminal proceedings against Wachovia for its facilitating of illegal money transfers from Mexico totaling $378 billion. To put that number in perspective…that is more than the annual budget of the Pentagon, the world’s headquarters of military operations for the U.S. Anyone interested in the happenings of the U.S. congress can research the percentage of U.S. dollars appropriated by our nation’s congress and see that military funding makes up, on average, over 50% of the federal budget. Conversely, an average of less than 10% is spent on education, job training, employment and social services combined! The...
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...Effects of Unethical Behavior Article Analysis Effects of Unethical Behavior Article Analysis Sarbanes Oxley Act was established in 2002, mandating organizations large or small to follow. “The Sarbanes Oxley Act has introduced major changes to the regulation of financial practice and corporate governance” (Sarbanes-Oxley Essential Information, 2012). The act has also changed the way financial statements have to be reported. In a Post Sarbanes Oxley Era companies need to adapt to become more relational to stay successful. The Sarbanes Oxley Act has changed the reporting of financial statements by making organizations include an internal control report. The reason for this report is for the purpose of “showing that not only the company’s financial data is accurate, but that the company has confidence in them because adequate controls are in place to safeguard financial data” (Sarbanes-Oxley Essential Information, 2012). Also at the year-end financial reports need to have an assessment of how effective the internal controls are in which the issuer’s auditing firm attest to the assessment. This happens after the auditing firm reviews the “controls, policies, and procedures during a Section 40/40 audit, which is conducted with a traditional financial audit” (Sarbanes-Oxley Essential Information, 2012). For firms to become more relational in a Post Sarbanes Oxley Era, they need to redefine the roles of each audit professional and retrain their employees to incorporate...
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