Corporate advisors, in this case a CEO or CFO are legally required to make fair and ethical financial decisions. The Sarbanes-Oxley Act or SOX, passed by Congress in 2002 holds corporate advisors that have access to influence company decisions legally accountable for any instances of misconduct (Titman & Keown, p. 11, 2011). The SOX act is in effect in order to protect corporate shareholders against financial misconduct and accounting fraud. According to Starbuck’s Code of Ethics for CEO and Finance
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The Ethics Thing: Why It Matters More in Hard Times and Why It’s So Hard to Do What Makes Good and Smart People Do Dumb and Unethical Things? Professor Marianne M. Jennings W.P. Carey School of Business Ethical Lapses • • • • • • • • • • • • • • • • • • • • • • Student loan lenders: Sallie Mae and 17 universities Adelphia Boeing Cendant Computer Associates Tyco International T I t ti l General Electric Global Crossing Merrill Lynch Enron Qwest WorldCom Royal Shell Nortel Krispy Kreme Refco
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activities (Cooper, Schindler). Enron’s ethical behavior started with its accounting department and the desire for greed. Without a governing body to ensure ethical responsibilities Enron continued to borrow money from itself eventually went bankrupt. In the wake of its missteps were retirements, stock, and countless employees. Enron’s lack of social responsibility, ethical failures, and poor management environment continued a cycle of irresponsibility. The ethical guidelines established by Enron were
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Effective managers and leaders contribute to the organizational success of an organization. Companies lacking strong managerial leaders failing to enforce the ethical code of conduct of an organization are prone to organizational failure. Yukl (2006), states, “One viewpoint is that leadership occurs only when people are influenced to do what is ethical and beneficial for the organization and themselves” (p. 4-5). The notorious Enron scandal created a historic impact to the organizational culture and processes
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years. This is a sad world that we live in when we cannot trust the people that have sworn to serve and protect our communities to make the right decisions when it comes to their duties. There are so many real-life examples that show police misconduct, because bad things always make front page but all the good that they do is overlooked. This case was very strange to me, officer from Oakland County, Michigan knows what the departments are capable of doing and still downloads and shares child
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police are not promising. This is why the creation of civilian complaint boards arose. Civil complaint boards are independent agencies, with subpoena power that handle complaints about different types of police misconduct (Civilian Complaint Review Board). It is the same police misconduct which erodes the public’s trust in law enforcement. Instance of racial profiling, corruption, excessive force and abuse of authority have slowly rubbed off the shine of the police in America in the last decade
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become more aware of all the right – wrong – good – bad relating to the world of business, Ethics comes to set the guidelines for behaviours and conduct within an organization. However, unethical behaviours still exist despite all attempts to fight misconduct and can be at any level of management. In my opinion, if I were in the situation of being encouraged to inflate my expense account, it would be my moral philosophy that most impacts my decision rather than the cultural values of the organization
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Infractions repeatedly occur without stiff and appropriate consequences. More severe repercussions would result in greater compliance from businesses. Exploring Ethics and the Role Standards Play in Business Situational adherence to appropriate ethical decisions is a practice common to the business world. Some companies will decide they are compelled to do what is morally correct and other companies will not. Dual standards may exist as far as fair treatment of employees and excellent customer
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1. Examine your ethical climate and put safeguards in place. Corporations are composed of cultures. Take a good close look at your culture. What are the norms of behavior? What is valued? Are employees rewarded for succeeding at any cost or are they urged to be shepherds of the corporation's reputation as well as its assets? What pressures do they face to commit misconduct? What systemic problems exist that could encourage good people to make bad decisions? Consider conducting a formal assessment
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Ethics Program Company X Part A – Standards and Procedures Dress Code Policy for Company X First impressions are significant to our customer relations. Customers will often form an opinion of the Company by appearance of those providing services, and a favorable appearance is required of every employee of Company X. A professional appearance includes but is not limited to grooming and dress. To maintain the Company’s reputation and image, the Company has established these guidelines
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