The evolution of the culture of our corporations has evolved in many ways and for many reasons. There were many different factors that played an important role in developing the change in the evolution of corporations. Societal and cultural influences played a major role in the early development of the objectives and reason for existence of corporations. Political forces have and will continue to play an influential role in the structure of corporations and the responsibilities corporations have
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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
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Ethical Behavior and Morality in Organizations begin with “The Tone at the Top” Executive Summary Unethical behavior in organizations creates many intractable problems which climax in fraudulent acts. When behavior in an organization is not ethical regulations are broken, and the likelihood of legal suits increase. Fraud in Enron and Adelphia in the early 2000s led to big bankruptcy filings resulting in huge losses in investments. Employees also lost jobs as well as significant portions of
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clearly depict its operations and finances with shareholders and analysts”. Wikipedia also mentions complex business models and unethical practices, including a modified balance sheet so that it portrayed a more favorable depiction of its performance. 3. What was the prime motivation behind the decisions of Arthur Andersen’s audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? Cite examples that reveal this motivation. It sure
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the state of the development of the country.” (Peter, pg 12). Maximizing shareholders’ wealth is just not enough. The author of the article is absolutely correct in stating that it leads to many unethical practices as we see in the case of the unethical conducts of big companies such Enron and WorldCom. Top executives’ compensations are tied into stock options; therefore, they have more incentives to manipulate financial reports. Developing corporate culture of ethical behavior would greatly benefit
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company’s real performance for they have the control to provide negative or positive feedback. There have been many examples where stakeholder’s wealth and interests were extremely affected by fraudulent or at least unethical management decisions. These examples include ENRON, WorldCom, Tyco and many more. Of course, business ethics is affected by inside trading and bribes. It turns out that the extent to which professional managers’ value business ethics can have a substantial impact on shareholders
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it comes down to the choices and decisions that people and organizations make that affect others. Now whether it’s for personal gain or to move a corporation along its solely dependent on the circumstance. For example usually when you hear about unethical practices you hear about issues in the work place. These issues can range from employees lacking decent health insurance to not getting their annual raises due to some foreseeable background issue within the company that was orchestrated by the
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Abstract Trust between employees and management within an organization directly affects the organization’s ability to perform the function for which it was created. In addition trust directly affects the well being of employees as well as their ability to perform their tasks. Recent historical events suggest that trust between employees and management has been negatively affected however, with the enactment of new laws and ethics policies has there been a strengthening of this trust relationship
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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
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MCI that contributed to the commission of this fraud. When we listen to Pavlo and outside sources, like ethics professor Stephen Henn in his book “Business Ethics,” we hear of employees concealing bad debt in Pavlo’s department. It seems that “unethical decisions were commonplace” (Henn 2009). We see an upper management that, when notified of large amounts of bad debt, completely denied any problem. Pavlo states, “I sent a memo to senior staff telling them that we had about $180 million of bad debt…
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