Effect of Unethical Behavior Article Analysis Terra Postelle ACC/291 January 08, 2013 Bennie Clark Effect of Unethical Behavior Article Analysis The effects of the Sarbanes-Oxley Act of 2002 on financial statements are general guidelines as to how the information is gathered, calculated and presented to clients while enforcing their accuracy and legitimacy. Companies such as Enron, Tyco, Global Crossing, and WorldCom are just a few examples of corrupt business cultures, practices, and greed
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WHY THE SARBANES-OXLEY ACT CAME ABOUT OR HOW TO COOK THE BOOKS The Sarbanes-Oxley Act of 2002 (Sarbox, or SOX) was enacted on July 30, 2002, to protect the general public and shareholders from accounting errors, unethical behavior, and corporate scandal. There are 11 titles that include the requirements for reporting, retention period for records storage, management of electronic records, and standards for external auditors. The act is supervised by the Public Company Accounting Oversight
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Ethics Strategic Planning and Implementation – STR/581 October 8, 2012 The major concern of any shareholder is to maximize the profit of the business; therefore organizations that seek to maximize their profits tend to periodically redefine the company’s missions and strategies. Those in successful strategic management positions also realize the importance of social responsibility. Strategic managers must recognize the importance of the stakeholders, which include stockholders and employees
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Broad-based input for joint decisions Forethought MGMT641_S1_2015_JLarkin 1 The Ethics Challenge “In the Post Enron, post-bubble world, there’s a yearning for corporate values that reach higher than the size of the CEO’s paycheck or even the latest stock price. Trust, integrity and fairness do matter, and they are crucial to the bottom line.” Source: Excerpt from J A Byrne, “After Enron: The Ideal Corporation,” Business Week, August 26, 2002, p. 68 Corporate Social Responsibility Pyramid MGMT641_S1_2015_JLarkin
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had been reported taking place in very successful companies, including Enron, WorldCom, AIG, and others (Weygandt, Kimmel, Kieso, 2012, p. 7). The number and magnitude of these scandals resulted in great suspicion of financial reporting, which proved to be detrimental to a company’s success. In my opinion, the most memorable scandal to have taken place in the business world during that time was Enron. During its existence, Enron was an American energy company based in Houston, Texas, and there were
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Richards and other members of Computer Associates' management are acceptable or cross the line into unethical or illegal behavior? Provide reasons for your answer. 5. What other actions could Computer Associates have taken to achieve its financial reporting objectives. For each alternative action, assess whether you believe it is acceptable or whether it crosses the line into unethical or illegal behavior. 6. What actions can other companies take to avoid the same outcome as Computer Associates? 7. Suppose
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such as Enron, initiated the enactment of the Sarbanes-Oxley Act 2002 also known as SOX. Prior to its existence, the public became aware of Enron’s weak internal control, misleading earnings reports, and conflict of interests between executives and their chief auditor.Misleading information provided in false earnings reports allowed Shareholders and employees to continue to investing in Enron. Misappropriation of funds invested and eventually Enron filed bankruptcy in 2001. The fall of Enron had an
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with ethics being the focal point of the decisions being made. A strategic plan is a base line from which a company works from in order create ethical guidelines. All organizations should take into consideration that there is a chance that unethical behavior may occur within its employees, which may include executives and/or subordinates (Pearce & Robinson, 2013). In the past we have seen
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remark that floating the ethical code. The very next thing was Benji’s notice the reports which were about how company built up businesses, sold them up at higher profit level and went into another business. There were other things which show the unethical business practices which are how they treated their distributors in slow economic. When Benji reached at New Gen Health Sciences and met recruiter, he was given gifts by company. While they having lunch, the recruiter told Benji’s about the chances
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MGT/521 03/10/14 CHRISTINE GNIEDZIEJKA Lessons from Lehman Brothers: Will We Ever Learn? 2. What was the culture at Lehman Brothers like? How did this culture contribute to the company's downfall? Anyone knows that rewarding bad or illegal behavior can lead to the making of a person who is irresponsible and reckless. This is a general description of the type of employees involved in the Lehman Brothers company culture. The Lehman Brothers culture was out of control and a blind eye was turned
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