...STRATEGIC RAIL FREIGHT APPLICATION PREVIOUS EXAMPLE: CORBY EUROHUB * Application 2006 * 2007 planning permission secured by Astral Developments * Early 2008 crisis and threats to sue and in October 2008 works starts on a road linking the DCs with the national rail network. http://www.northantstelegraph.co.uk/news/top-stories/work-to-begin-on-rail-road-link-1-792520 * 2010 dispute to pay Section 106 payments or the Community Infrastructure Levy * 2012 revised plan was granted to encourage balanced economic growth Suspected Abuse of Procedure A few years ago there was a similar application made by ProLogis in Corby for the Eurohub strategic rail freight terminal including warehouses and manufacturing buildings which was never built. Planning permission for this project was granted in 2007. It took a long time for any type of work to begin on the site, local people feared that the project had been cancelled, but in October 2008 they started construction of a road linking the DCs with the national rail network. ProLogis issued out a statement reassuring the public that everything was fine. Speaking on new rail freight terminal at the Eurohub main development in Corby in 2008 Simon Jenkins, from ProLogis, said: “We remain committed to the development of Eurohub Main, Corby, at which we have recently just completed the first phase of site preparation. The Stanion rail freight terminal was supposed to provide a direct train link to and from the Felixstowe port...
Words: 808 - Pages: 4
...Legality and Ethicality of Corporate Governance United Thermostatic Controls is a publically traded corporation and is in the middle of an internal audit going on. The company makes and sells the thermostats that are in refrigerators and furnaces in residential and commercial properties. Frank Campbell (the director of the Southern sales division) is worried about their goals not being met due reasons concerning the big fluctuations in the market, the end of the year approaching, the thermostat parts not being in such a high demand anymore, etc. Frank Campbell starts making decisions concerning the ethicality behind the results of the internal audit. Legal Issues and Applicable Laws Since United Thermostatic Controls is a publically traded company, there are several laws that the Company needs to abide by. The Sarbanes-Oxley (SOX) act of 2002, the Generally Accepted Accounting Principles (GAAP), and the AICPA Code of Conduct. In regards to this specific case, there are certain regulations that the auditors need to follow when they are performing an audit. Sarbanes-Oxley and United Thermostatic Controls When examining the criteria that need to be followed by United Thermostatic Controls concerning the Sarbanes-Oxley (SOX) act of 2002, there are a few specifics that come to mind. For example, Corporate Responsibility for Financial Reports (Section 302) is in reference to the responsibility that the CEO and CFO have when signing off on financial reports, and it certifying...
Words: 949 - Pages: 4
...Corporate Governance United Thermostatic Controls, a publicly owned company, like many other companies in the world faced financial difficulties in 2010. The company set sales goals in the different regions they serve for 2010; most of the regions met or exceeded their goals although one region was below the target. The director, Frank Campbell, of the region with below target sales thought of an idea to meet the goals. The CPA, Tony Cupertino, was informed of the idea and the effects to the organization. Could the decision cause ethical or legal effects for the organization? Further review of the decision was needed to ensure SOX was followed and to determine if the decision would be equitable for stakeholders. Many people think accounting decisions are always clear based on laws and regulations; however, organizations need to be mindful of effects for everyone involved in the organization. In the United States there is no formal report for corporate governance; however, companies must disclose, and adapt corporate governance guidelines. The CEO of each organization must acknowledge the acceptance of the guidelines and comply with them (Mintz & Morris, 2011). After the Enron case New York CPA candidates must met ethics requirement criteria (Mintz & Morris, 2011). In this respect it is important for United Thermostatic Controls to separate ownership and control in the organization. The legality of the activities of United Thermostatic Controls are questionable based...
Words: 850 - Pages: 4
...Legality and Ethicality of Corporate Governance Nicolle Pack ETH376 / University of Pheonix Abstract The publicly traded company, United Thermostatic Controls, is currently in the middle of an internal audit. The different divisions of the company are regionalized according to their area. The southern division has had struggled with decreasing sales and is having a hard time reaching the target set for their sales. The company pushes the different divisions to be aggressive with increasing revenue and sales. Legality and Ethicality of Corporate Governance Corporate Governance is a combination of rules and regulations that function as a control mechanism to keep management operating ethically and legally. The absence, of corporate governance, would allow a company’s management team to operate under guidelines which may or may not involve integrity, responsibility, or accountability. The publicly traded company, United Thermostatic Controls, is currently in the middle of an internal audit. The different divisions of the company are regionalized according to their area. The southern division has had struggled with decreasing sales and is having a hard time reaching the target set for their sales. The company pushes the different divisions to be aggressive with increasing revenue and sales. Legality United Thermostatic Controls needs to be in compliance with certain laws and accounting regulations in order to maintain operations. These laws and regulations are the Sarbanes-Oxley...
Words: 981 - Pages: 4
...Governance Name ETH 376 January 30, 2012 Instructor Legality and Ethicality of Corporate Governance United Thermostatic Controls is a publically traded corporation, and currently they are in the middle of an internal audit. The company manufactures and markets residential and commercial thermostats. The company is divided into four regions, U.S.A Sales Division, Western Sales Division, Eastern Sales Division, and Southern Sales Division. Each of these divisions has its own goals, and so far all of them have met them, except the Southern Sales Division, from which Frank Campbell is the director. Due to fluctuation in the market, parts are no longer in a high demand, and as the year end approaches, projections and goals are most likely not to be met. This paper will analysts the decision takes by Frank Campbell and the ethicality of his actions and the results of the internal audit. Legal Issues and Applicable Laws There are several laws that United Thermostatic Controls need to abbey in order to function. Sarbanes-Oxley (SOX) act of 2002, the Generally Accepted Accounting Principles (GAAP), and the AICPA Code of Conduct, and in this case, the regulations that auditors need to comply with while performing an audit, for example the Statement on Auditing Standards, and their responsibilities to the company they work for. Sarbanes-Oxley and United Thermostatic Controls There are several provisions in particular, from the Sarbanes-Oxley (SOX) act of 2002 that need to...
Words: 942 - Pages: 4
...Legality and Ethicality of Corporate Governance Paper ETH/376 Legality and Ethicality of Corporate Governance Paper United Thermostatic Controls is a publicly owned company that manufactures and markets residential and commercial thermostats (Mintz & Morris, 2011). As a publicly owned company, United Thermostatic Controls common stock is listed and traded on the New York Stock Exchange. Frank Campbell is the director of the Southern sales division. Because of regional economics getting worse, the pressure to achieve sales revenue targets has created stressful and possibly unethical situations. Mr. Campbell feeling the pressure that he would not meet budgeted revenues for the fourth quarter, researched purchase orders received during late November and early December. Mr. Campbell decided to manufacture and ship orders prior to the end of the year to have the sales revenue contribute toward the fourth quarter. This action by Mr. Campbell resulted in sales revenue to be 18.6-percent increase over the actual sales revenue for the third quarter of the year and exceeded the budgeted amount by $80,000. This prompted the internal audit staff to question the appropriateness of the recorded revenue of $150,000 on two shipments made by the Southern division in the fourth quarter of the year. Further investigation revealed that the customers did not want delivery of product until the earliest of February 2011; in addition, one of the customers did not want partial shipment...
Words: 959 - Pages: 4
...The United Thermostatic Controls Company is one of many that is publicly owned and manufactures and markets residential and commercial thermostats. As a publicly owned corporation. United Thermostatic Controls mutual stocks are to be listed and traded on the New York Stock Exchange. Frank Campbell is the director for the Southern sales division; however beings the economics are getting worse for the Southern Region Campbell is faced with a tough decision in order to make his sales quota. Considering Campbell may not meet his budgeted revenues for the fourth quarter he has researched purchase orders that should have been received during November possibly December. With those purchase orders Campbell decided to manufacture and ship the orders prior to the end of the year to have the sales revenue for the third quarter of the year exceed the budgeted amount by an additional $80,000. The action that Campbell has taken increased his revenue for sales by 18.6% above the actual sales for the third quarter. With this sudden increase in revenue the auditing staff started to question the recorded revenue of $150,000 on the two shipments made by the Southern division in the fourth quarter. The investigation continued uncovering the fact that some customers did not want the delivery of any product until February 2011 with one customer not wanting partial deliveries, which is what they ended up receiving. This paper will address the legality of the activities based on federal, state...
Words: 317 - Pages: 2
...Legality and Ethicality of Corporate Governance This paper will discuss the legality and ethicality of United Thermostatic Control’s (“United”) corporate governance. Given the fact that United is a publicly owned company, the role that the Sarbanes-Oxley Act of 2002 (“SOX”) played in this case will be examined. The discussion will cover various regulations such as the AICPA Code of Conduct, GAAP, and the ethicality of the activities that occurred at United. United Thermostatic Controls manufactures thermostats for commercial and retail users. Like most companies its goal is to achieve increased sales and higher profits for its shareholders. This is particularly important because it is public traded and any drop in sales or deviation from earnings might cause the price of the stock to drop. United is divided into four divisions, Eastern Sales, Western Sales, Southern Sales and USA Sales. With the exception of Southern Sales, all of the other divisions are doing well and meeting expectations. Southern Sales has been experiencing a decrease in its sales and is not meeting the targeted amounts. If the year end financial statements are released and this situation has not improved, it would not only have a negative impact on the market price but it would probably affect management’s bonuses as well. The company will face ethical and legal challenges in how to maximize the last quarter of 2010 to meet sales goals. Frank Campbell is the director of Southern Sales. Realizing...
Words: 1073 - Pages: 5
...9-502-030 R EV: JUL Y 1 0 , 2 0 0 6 ____________________________________________________________ ____________________________________________________ Professor Youngme Moon and Research Associate Kerry Herman prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Some data have been modified or disguised. Copyright © 2002 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she...
Words: 6571 - Pages: 27
...9-502-030 REV: JULY 10, 2006 YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He had been looking forward to this opportunity to discuss an HBS case possibility. In May 2001 Aqualisa had launched the Quartz shower, the first significant product innovation in the U.K. shower market since—well, to Rawlinson’s mind—since forever. But here it was early September 2001, and the euphoria surrounding the product’s initial launch had long since faded. Rawlinson knew the Quartz was technologically leaps and bounds above other U.K. showers in terms of water pressure, ease of installation, use, and design. But for some reason, it simply wasn’t selling. The U.K. Shower Market Rawlinson leaned forward as he began to explain his situation. Showers in the U.K. were plagued with problems. While everyone had a bathtub, only about 60% of U.K. homes had showers....
Words: 6470 - Pages: 26
...9-502-030 REV: JULY 10, 2006 YOUNGME MOON Aqualisa Quartz: Simply a Better Shower Plumbing hasn’t changed since Roman times. — Tim Pestell, Aqualisa national sales manager Harry Rawlinson (HBS ‘90) shrugged out of his overcoat and headed to the reception desk of the South Kent County Marriott. “Can you direct me to the breakfast room?” he asked, “I’m meeting some guests from America.” The receptionist pointed toward a hallway lined with photographs of the region’s golf fairways and putting greens. “It’s just to the left down there,” she said. As he strode down the narrow corridor, Rawlinson, managing director of Aqualisa (see Exhibit 1), a U.K. shower manufacturer, felt a surge of energy. He had been looking forward to this opportunity to discuss an HBS case possibility. In May 2001 Aqualisa had launched the Quartz shower, the first significant product innovation in the U.K. shower market since—well, to Rawlinson’s mind—since forever. But here it was early September 2001, and the euphoria surrounding the product’s initial launch had long since faded. Rawlinson knew the Quartz was technologically leaps and bounds above other U.K. showers in terms of water pressure, ease of installation, use, and design. But for some reason, it simply wasn’t selling. The U.K. Shower Market Rawlinson leaned forward as he began to explain his situation. Showers in the U.K. were plagued with problems. While everyone had a bathtub, only about 60% of U.K. homes had showers. Archaic plumbing...
Words: 6565 - Pages: 27
...sales are far below expectations. Customers do not have brand awareness of Aqualisa, plumbers are wary of innovation and salesmen are unsure of how to positively market a product without negatively reflecting on other products in their company. Background of the situation: In the United Kingdom only about 60% of homes have showers due to the unique issues of bathroom remodels in Victorian era homes. Homes with plumbing from this period are gravity fed, with a separate boiler; this meant poor water pressure and temperature fluctuations. Three types of shower solutions were installed in UK bathrooms. * Electric Showers use water from cold water supply. Electrical heating elements in the shower raise the temperature of the water. This type of shower did not address the flow problem. These are a budget solution and very bulky. * Mixer Shower valves; either Manual or Thermostatic. Both mix hot and cold water to create the desired temperature of the water; these require a lot of excavation of the wall during the installation. To help the water pressure additional booster pump was used. These are a high end, attractive, but costly solution. * Integral power showers are compact with thermostatic mixer valve and a booster pump. They require mounting of a box in the wall but do give a pressure of 18 liters per minute. This is a convenient but not as reliable solution The average customer’s largest complaints about the showers are poor pressure and temperature fluctuations...
Words: 1272 - Pages: 6
...Legality and Ethicality of Corporate Governance Corporate Governance is control mechanisms that keep management operating within the rules and regulations. Without corporate governance, management could start operating under their own guidelines which may or may not involve integrity, responsibility, or accountability. Publically traded companies are required to have some type of corporate governance in place since the scandals from Enron and WorldCom. The case study that we are discussing is from United Thermostatic Controls. United has many different divisions and they are all decentralized according to their respected area. The southern division has been gradually decreasing in sales and having a hard time meeting their sales targets. The company as a whole is very aggressive with increasing revenue and pushes the different divisions very hard to try to reach or exceed their sales goals. Top management receives bonuses based on these goals as well as corporate profits. The director of the southern sales division decides that he is going to try to push through PO’s that are really for the next year and this raises many questions from the auditors. The question is which laws or regulations will this particular decision break or be non compliant. The first thing that this would go against is the fact that he is pushing customers into taking products that they are not wanting until the next year. Because the products are being sent FOB shipping point, this means that the buyer...
Words: 770 - Pages: 4
...Week 3: Individual Legality and Ethicality of Corporate Governance Alisha J. Simental March 6, 2014 Katherine Parks Introduction In Case 3-3, we are introduced to the United Thermostatic Controls," that engages in the manufacturing and marketing of residential and commercial thermostats."(S. Mintz, R. Morris, 2011) They use their thermostats control temps in refrigerators and furnaces, mainly selling to retailers. According to the text, economic conditions and the reduction of demand has created internal problems and tension to still achieve target revenues. In addition, the sales department is feeling the pressure to increase or expand earnings. The internal auditor found two cases that did not follow correct procedures, because the accounting department recorded revenue for these earlier in order to meet the target revenue, due to pressure from Campbell the director of sales division. In this paper I am going to discusses the legal activities, criteria of SOX act, ethical activities, and decide on the best nest step decision. Legal Activities The two shipments made up about 150,000 in revenue and were the main concern for the internal auditor. In the first shipment United ship the product on the 31st of December even though the company, Allen did not want it delivered before the 1st of February due to not needing it until the 1st of March. In the second shipment, the company shipped a partial shipment to Bilco Corporation on the 30th of December even...
Words: 1232 - Pages: 5
...Ethical Obligations and Decision Making in Accounting Text and Cases Steven M. Mintz, DBA, CPA Professor of Accounting California Polytechnic State University, San Luis Obispo Roselyn E. Morris, PhD, CPA Chair and Professor of Accounting Texas State University-San Marcos Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Table of Contents Chapter 1 Integrity: The Basis for Ethics in Accounting 1 What Is Ethics? 1 Definition 1 Application of Ethical Reasoning in Accounting DigitPrint Case 33 32 Conclusion 34 Discussion Questions 34 Endnotes 36 Chapter 2 Cases 37 2 Case 2-1: A Faulty Budget 38 Case 2-2: Better Boston Beans 39 Case 2-3: Eating Time 40 Case 2-4: Is Internal Whistle-Blowing "Right"? Case 2-5: Play Ball 43 Case 2-6: Supreme Designs, Inc. 44 Case 2- 7: The City of West Buckle 46 Case 2-8: The CPA Review Course 47 Case 2-9: The Ethics ofiPod-ing 48 Case 2-10: The Tax Return 49 Distinguishing between Ethics and Morality Religious and Philosophical Foundations of Ethics 3 Teleology 4 Deontology 6 41 Acting with Integrity Personal Integrity 8 7 The Moral Point of View 7 The Six Pillars of Character.... 8 Trustworthiness 8 Respect 10 Responsibility 10 Fairness 11 Caring 11 Citizenship 12 Chapter 3 Ethical Decision Making in Business 50 What Is Business Ethics...
Words: 1401 - Pages: 6
