¶ … flurry of ethical fiascos at companies like Enron, Tyco, Peregrine, Adelphia and WorldCom have spurred many corporations to take a close look at the rules that govern their corporate behavior. Enron, likely the most famous of these cases, involved accounting and other forms of fraud at many levels of the company, including the executive level. Clearly, the actions of these corporations represent a failure in the moral and ethical actions of a number of players. In response, there have been a number of calls aimed at tightening ethical considerations within corporations, including restructuring rules within corporations. Restructuring a corporation's rules of conduct has a number of moral considerations. Importantly, it can be argued that the basic, underlying motivation of a corporation is essentially at odds with many other ethical notions held by society. At its most basic, a corporation's goal is to make money. Hessun Wee, columnist with Business Week Online, notes the pressure of a capitalistic, "Wild West culture that sublimate(s) everything to the goal of driving up the stock price" (Wee). It is this pressure to make money and drive up stock...
Corporations are often asked to be good corporate citizens, and ensure the well-being of their employees, the environment, and even society as a whole. This is all well and good, and certainly ethically defensible, but a problem arises when a corporation's fundamental role of making money comes into direct conflict with these goals. What happens to the viability of corporate ethical codes when a company must choose between making a profit or polluting the environment by dumping waste into a local river (and thus saving money)? More importantly, what happens to corporate ethics when a corporation must either commit an unethical act (like polluting the environment, harming human health, or falsifying accounting records) or go out of business, thereby damaging shareholders, employees, as well as executives. These…
Corporation Diversifying Internationally In the recent past, after the onset of the economic meltdown, firms, companies and businesses at large have been resorting to less traditional methods and entrepreneurial tactics in order to combat reduced demand, much more competition and increased costs. International diversification was the answer for many firms, following in the tracks of multinational and transnational companies; many businesses have resorted to relocating their plants and facilities to gain
Corporations often use ineffective strategies to tackle workplace diversity issues. For example, many attempt to utilize affirmative action policies prescribe hiring by quota. Such policies are doomed to fail when a company finds itself hiring unqualified people for managerial roles. If that happens, it benefits nobody. People in senior management lose faith in hiring women and minorities and this has a knock-on effect on attitudes throughout the organization as well. In
Rules of Debit and Credit Financial transactions under double entry system have double effect because they involve at least two accounts. One is credited and the other is debited. The debiting and crediting has to be done on basis of laid down rules. Accounts are often classified in terms of assets, liabilities, income, and expenses (Larson & Jensen, 2005). Expenses are further classified thus: capital expenses and revenue expenses. Assets are classified
" The analysis cited above continues to describe the ways in which corporate "life" (in the sense of how many different individuals and entities are vital to the running of a corporation in the current climate): Businesses today must be consumer, profit, and publicly oriented. Only a few years ago, the first two would have sufficed. But, in support of our dualistic argument regarding the marketing concept, that is -- creating exchanges
Corporations The modern corporation has a lengthy history that spans four centuries, but this business model has expanded greatly since that time to include a wide range of corporation types with fundamentally different ownership structures and goals (Rao 2). Given the global impact that corporations have on the economy today, it is important to gain a better understanding of corporations, including most especially their similarities and differences and how these
The dark side of solidarity-based cultures is that they can become overly impersonal, neglecting the needs of the individual in favor of the collective. A culture with high levels of sociability and high levels of solidarity becomes Communal. A culture with low levels of both sociability and solidarity is described as Fragmented. Organizational cultures with High levels of sociability but low levels of solidarity is Networked, and an organization with
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