...Effects of Unethical Behavior Article Analysis ACC/291 July 8, 2012 Effects of Unethical Behavior Article Analysis Ethical practices and behaviors are different for everyone. In order to identify what might lead to unethical practices and behaviors in accounting, it is necessary to examine who is in control. Some individual may look at what can be done versus what are legally acceptable accounting principles and behaviors. The Sarbanes-Oxley Act of 2002 was enacted by United State Congress to protect investors from the possibility of fraudulent accounting activities by corporations. This created a world wind of anxiety for corporate executives. Section 302, a mandate which require senior management to certify the accuracy of the reported financial statement. Corporations were mandated with strict reforms to improve financial disclosures and prevent accounting fraud. Internal controls by management were of special concern and so a section of the Act called Section 404 was imperative for upper management. They must not only certify the company’s financial reports, but must now take full responsibility for any erroneous or misleading statements. Management and auditors must establish internal controls and reporting methods on the adequacy of those controls. For publicly traded companies, Section 404 had costly implications, as it is expensive to establish and maintain the required internal controls. According to Investopedia.com, the scandals with Enron...
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...priority to corporate ethics and social responsibility had risen from less than 40% in 2004 to 50% 2007 and still rising” (Wheelan, 2010 p. 74). The author of this paper will discuss how the role of ethics and social responsibility will effective stakeholders and society. In addition, the author will discuss how the Arthur Andersen Corporation overstepped their ethical boundaries to their stakeholders. Ethics and Social Responsibilities Ethics spells out the important in order to achieve a specific result within the organization in existing or occurring issues. Moreover, the way people as a society make ethical decisions in his or her personal lives, is not necessarily the same way they make decisions in a business environment. Upper management implements ethical policies for all employees, this information should be updated continually through manuals or on the company’s website. Organizations in the United States use two views for business responsibility in the area of ethics Milton Friedman’s and Archie Carroll’s view. Friedman’s view is widely accepted in the business environment. According Friedman the best approach in business and for sociality is “ to used its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” (Wheelen, 2010, p. 72). For example, General Mills spent millions in charity, community events, and...
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...way, we can find several individuals and entities acting unethically. In this paper, we are going to discuss three unethical activities and entity occurred in the movie, including the ways local tanneries deposed toxic chemicals, and try to cover it after the lawsuit has been filed; the defendant attorney’s behaviors throughout the movie; the judge’s position in the case. First unethical activity is the ways local tanneries carelessly deposed toxic chemicals. As we know that toxic chemicals is danger in any course, and need to handle and depose in proper way. However, the local tanneries dump directly to the land, which they call “swimming pool”. After long period of time, the soul was loaded with toxic chemicals, and leaked them to the water supply. This is unethical and morally wrong. Moreover, after t lawsuit has been filed, they rented a dump truck and destroyed the evidences to cover what they did. Second unethical activity is the defendant attorney’s behaviors throughout the movie. In the movie, the defendant attorney tries to give Jan Schlittman an offer to settle the case twice, before the trial and during jury deliberation. These offers clearly show that he know his clients were wrong. Therefore, by taking this client, he is ethically wrong. Also, the movie has shows some scenes about how the defendant attorney teaches in the law school. In his class, he stated that it...
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...of our management consulting company understand it’s our role to help non profits that inspire individuals and communities for public benefit. It’s for this reason we feel it’s our social responsibility to operate with integrity and accountability in all our affairs. As a company, we are committed to maintaining the highest standards of business ethics. Furthermore, we expect our employees to act with personal and professional integrity in all aspects of their business activities. Regardless of a person’s role in the company, everyone is expected to follow the letter of the law in everything we do. While we feel human capital is our greatest asset, it’s imperative that we create a structure for the organization that will allow us to grow now and in the future. Past this, we feel having standards and procedures in place will help us build trust with our clients. Governance Our board of directors is responsible for defining the mission of the company. Furthermore, the board will provide strategic direction for the company. Financial Management The company must comply with all legal and financial requirements that apply to the organization. Past that, it’s the company’s responsibility to follow sound accounting principles producing reliable and verifiable information. SUBDMAIN 310.2 ETHICS Human Resource We will exercise fair hiring practices of employees. Our goal is to attract and retain the most qualified employees. Employment law will be followed. In addition, we will...
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...school, they were told that the only way to gain success was through hard working. As a student, you should work hard to get good a grade. As an employee, you should work hard to get a promotion. This is a classic American dream: as long as you work hard, you can always achieve your dream no matter what backgrounds you come from. However, reality seems to be disappointed. Working hard is not the only way to get ahead any more. Those who work much harder seem to be less successful than those who work less hard but know how to play tricks. Cheating is a secret weapon that could make you move forward. It is becoming more common, tempting and covert than it was fifty years ago. It is the time to hold our remaining virtues to fight against unethical behaviors. We should identify factors that have led to the phenomenon of cheating and then seek effective ways to conquer it. In their book Final Accounting, Toffler and Reingold (2003) talked about how the world once greatest accounting firm Arthur Andersen cheated together with its clients to mislead investors and eventually collapsed after being disclosed many astounded accounting scandals of the firm. Toffler and Reingold (2003) pointed out that people tend to blame such cheating scandals to a few bad individuals. Whereas, it is the culture that should take the responsibility. It is the corrupting culture that makes cheating an attractive way to get what you want (p.204). In the book, The Cheating Culture, David Callahan (2004) provided...
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...These uncertainties are a cause for concern and should be thoroughly gone over. Choosing a child’s traits and altering his/her genes could lead to deformities in his/ her offspring. These procedures are not perfected yet and so these scientists are prone to make mistakes which could lead to a mutation causing more problems for the body. On a serious note, experimental failures on the part of these scientists will terminate the life of the embryo. There is also the possibility that the traits chosen will not manifest in the child as he/she grows up. Also, having these selected traits might cause other negative traits manifest as well (abusive, psychotic behavior) and who will be to blame for these ‘negative’ traits? Later on, people will not admire or appreciate diversity because some traits are desired more than others, for example, long, slender hands may be preferred to short and fat hands and they would go for these ‘good’...
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...is, would it be ethical if I download big files or stream high quality video especially during peak hours and bog down the network? The trend of telecommuting in companies is on rise and different companies have different policies about working from home. But it is ethical for some to misuse this privilege? During a personal discussion with family or friends or business discussion with coworkers or vendors is it okay to talk more and listen less? There are lots of similar questions about our and others behavior that we experience and observe daily and that we should be ask ourselves. In my opinion studying ethics is more like soul searching and finding out are we following the same basics that we learned in our first 10-15 years of life from our parents and teachers on how to be a good and responsible citizen in this global village we live in. We all hear about how businesses are doing unethical practices but in reality it is the people who are demonstrating the unethical behavior not the business. It is important for all of us to study ethics so we can make good choices and decisions in our personally and in our professions. 2. Why should we be concerned about doing “the right thing”? The one simple reason for being concerned about doing right thing is in the proverb, ‘What goes around, comes around’. It is an individual or a business or a country, there is no shortage of examples of the disasters at every level for the same reason of not doing the right thing....
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... In our textbook Organization Behavior by Nelson and Quick, ethics is defined as “the study of moral values and moral behavior” (Nelson and Quick). Ethics are a very important aspect in an organization. Ethical behavior by an organization can set them apart from others and give an impression of a good, honest working company. Ethical behavior is defined as “acting in ways consistent with one’s personal values and commonly held values of the organization and society” (Nelson and Quick). This definition is a little more open ended because it gives the organization power to decide what is ethical. The key part of this definition is “values of the organization and society”. This aspect of the definition means that ethical behavior based off of societal values and not just personal beliefs. Unethical behavior in an organization can cost many companies. Things such as wrongful termination and other unethical behaviors can lead to lawsuits against a company. Organizations that have not abided by the codes of ethical behavior have had major consequences, which are shown in throughout this paper. A major question is should an absolutist view be taken towards ethics or should situations be judged at the time of the issue in order to apply the rules the way you see fit? When it comes to ethics any illegal actions are clearly immoral but certain cultures and values create what is wrong and what is right within an organization. Ethical behavior in an organization is key to it...
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...Running head: Ethics in accounting Ethics as an Accountant The main objective of this proposal is to gain insight into the unethical accounting practices of major corporations (with a majority of the focus on Enron, WorldCom, Tyco, and Adelphia) and ultimately exposing the true perpetrators behind these scandals (the CEO's) in an effort to restore credibility in the once revered accounting profession. Many of the people responsible of these crimes are enjoying retirement in lavish homes while receiving ludicrous pension plans and company benefits at the expense of investors. If they are not brought to justice, they will realize they can get away with this sort of behavior, and the prevalence of unethical behavior will continue to rise. Research Question Are the accountants truly responsible for the fraudulent claims companies are making these days, or are they simply pressured by their bosses to fabricate figures that enhance the image of the company's profitability and fill the CEO's greedy pockets? Literature Review In the past 5 years, a plethora of articles and books have been released, dealing with ethical business practices. Balancing the books: The crooked E, is an article by Anita Peltonen, which examines Enron's practice of kiting (Illegally benefiting from altering the amount of money or time represented by checks that are in transit between deposit and payment, or credit card purchases that are between the purchase and the payment. For example...
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...1.0. INTRODUCTION The term ethics comes from the Greek word “ethos” which mean character or attitude and personality. Some philosopher defined that ethics as one of the research towards morality and some said that ethic is also the behavior principles that control the individuals or profession as a standard in making decision or action. For the technocrat group, ethics is linked with study on standard of morale issue. Ethics played an important role in a person life because ethics really show the person morale whether its good or bad. Ethics have many theories that explained the principles that can be used in designing the good personalities in oneself. One of the important theory is the Consequentialist Theory, The Consequentialist Theory is divided into many theories such as the egoism and utilitarianism ethics. We should learn about ethics in our daily lifes and anywhere we are. 2.0. THE VALUES IN ETHICS RESOURCES There are four (4) resources in the value of ethics. The resources are religion, philosophy, the culture experience and also law.. 3.1. Religion Religion is the main and oldest resources in the values of ethics. Religion played an important role in building the ethics value in oneself and as well as the organization. For the individual that are Muslim, they are tied with the ethics value that is stated in the holy Quran which was left behind by the prophet Muhammad which was written in the hadith. Whereas other religion they are also tied to their...
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...population. Many doctors became driving forces in the creation and widespread building of concentration camps as well as the Lebensborns, which were registered associations in Nazi Germany with an aim to increase the birth rate of "Aryan" children of parents who were identified as "racially pure and healthy". Influence and leadership from doctors, similar to Davenport’s contribution to American eugenics, allowed for the movement to become widespread. The Nazi party thus had complete power over these child producing programs. The SS soldiers would detect and pinpoint Jewish orphanages, overtake them, and in progress, send Jews to concentration camps while killing those who would not voluntarily go with officers. They would then fill up these now empty buildings with young girls predetermined to be child-bearers. Desirable women were kidnapped from countries such as Poland, Czechoslovakia, and other Northern European nations in order to gain as many women as possible to carry children. In total, 100,000 girls were taken from Poland alone in order to fulfill their goals. These women were given drugs in order to progress their puberty system earlier than natural. This allowed them to be much more capable of having more children in a much safer way, although it was still extremely dangerous for the young women. This applied practice of the Nazi agenda was extremely successful in eradicating their ideas of unfit members while also accumulating a pure Aryan race. Concentration camps are...
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...REVIEW OF THE LITERATURE Psychology and Social Perspectives 7-9 Theories to Analyze Police Behavior 9-15 CHAPTER THREE: DISCUSSION Implications of Police Corruption and Conclusion 15-18 REFERENCES 19 Abstract Society has a responsibility to respect the community and of course, the police officers that protect the community. More often than not, society’s respect of police officers is nonexistent due to the constant media reports of police corruption and brutality. Police corruption has been around since its conception, but is now being publicized more heavily. As a result, mistrust of police officers has increased. Solutions to the mistrust must be discovered and implemented. Even more important than solution is prevention of police corruption and practices that will make the police reputation and actions more ethically sound. With appropriate discipline and prevention practices in place, integrity will be established within the organization and public trust will be established within the community. CHAPTER ONE Introduction and Background Police Corruption takes place when a police officer engages in an unethical way that is motivated by the desire for personal gain. In most countries there is no specified crime that defines corruption because the definition and rules around corruption would vary from agency to agency. Typically corruptive behavior is more often than not classified as bribery or extortion, but depending on the legal system...
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...In business, leaders, managers, and employees face conflicting incentives, messages and pressures from multiple stakeholders. Conflict of interest is said to occur when a professional’s self interest offers an incentive that mitigates his or her judgment against the best interest of the corporation or its customers. In turn, most professionals are unaware of their unethical progression because they are blindsided by internal motivation and expectations. It has been proclaimed that the most important job of the board of directors is hiring the right CEO, causing most boards to fail to notice unethical behavior in someone they do not wish or expect to find it. In fact, research suggests that it is usually difficult to report wrongdoing in an organization because most employees believe the same and fear retaliation, rejection, or disbelief from corporate leaders. Ethical principles will often offer advice for procedures and norms that can reinstate ethical concerns before unforeseen behavior damages an enterprises culture or reputation. In general, ethical systems are designed to improve the ethical behavior within an organization. To do so requires examining the interaction of many factors and forces in a working environment - which were investigated (analyzed) in this report. Executives sometimes use accounting to try to hide things from investors, society, and corporate leaders. Officers will fall prey to wall-street expectations and begin focusing on improving their ...
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...Price of Unethical Behavior MGT7019-8 Ethics in Business Laura M Brooks July 21, 2013 We as a society have assumed companies in whole have been ethical in doing business. It wasn’t until Enron in 2001 that the public has become more aware of business activities. Shortly after Enron, Tyco International caught the public eye. One must first have an understanding of what it is to be ethical and moral. Once there is an understanding of these two terms, one may gain an appreciation of the occurrences in the corporate business world in the early 2000’s. One occurrence in particular is Tyco International. Tyco International will be evaluated. This evaluation will include the historical aspects, the corporate spending and the loans obtained, the outcome of events, and the punishments imposed. Further, the question of is it difficult to see ethical breaches that we may commit will be discussed. Ethics and morality are interconnected and thus integrity is also linked. According to Stephens, one cannot be defined without the other being in the definition. Stephens states many definitions of ethics have morals within the definition. One may differ with Stephens. While both ethics and morals relate to right and wrong, ethics is set rules of conduct that spells out how things are based on the rules for a specified group or action and morals are based on a person’s habits or principles and ideals as to their conduct. Integrity is a rigid adherence to a code of behavior. Ethics...
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...Business Ethics in the Workplace Jamie J. Lear MT3250 – Organizational Behavior Dr. Carl W. Proehl, Jr. November 10, 2013 Abstract Work ethics is a group of moral principles, standards of behavior or set of values regarding proper conduct in the workplace. This is something organizations need to focus on in order for them to succeed and strive to remain on top while the competition in the marketplace is so high. Ensuring your employees know and practice work ethics is important so employees remain loyal to the organization as well as knowing when and how to report an incident no matter how big or small. Companies should always have this information available and periodically have training in this area to keep current with the times and create an environment where employees feel they can talk to their supervisors or managers without fear of retaliation or retribution. In this paper, I will discuss in detail what work ethics are and what organizations can do to help this process. Businesses and corporations that stand and uphold ethics in the workplace tend to show more productivity and less job turnover than companies that don’t support ethics in the workplace. The need for this is essential. In a market where competition runs rampid, companies that practice dirty ethics and customer distrust are on the rise, a company that has integrity and shows promise is the companies that customers tend to favor...
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