Unethical Accounting Behavior
Our hypothetical situation is a company that sells housing units in a resort community. We will call the company, Jones, Inc. Jones Inc. uses techniques to sell as many units as possible in a given fiscal period, financing almost all, regardless of whether the client is credit worthy or not. The sales force receives a bonus from the real estate conglomerate for selling a certain number of units, and operates on a strong of volume rather than actual cash flow. From an accounting standpoint, Jones' underestimating bad debt within certain fiscal periods as opposed to presenting appropriate quarterly reports allows the books to look far better than the actual cash flow of the organization. Clearly, utilizing proper accounting procedures, income/debt ratios should be reported during the specific quarter or time-period they occur, rather than "overstating" or "understating" within a fiscal period (See: Smith, et.al. 2003).
In addition, GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. These principles govern the licensing and standards of all accountants, and were designed to allow the ethnical believability of certified accounting documents throughout the industry (see, for example, www.fasab.gov/accepted.html). These guidelines are a standard, a framework for fiscal accounting reporting and responsibilities. It includes, but is not limited...
Corporate Compliance Plan: Riordan Manufacturing Our company, Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. While the introduction of ethics into the curriculum is laudable, it really is not what corporate compliance is about. In a sense compliance is beyond ethics -- not
Hypothesis Five In the fifth hypothesis of measuring the business ethics levels of Taiwanese ITPs the Null and Alternative Hypotheses are defined as follows: H0: In the ethical climate of independence, the business ethics level of Taiwanese ITP's is high. H1: In the ethical climate of independence, the business ethics level of Taiwanese ITP's is low. Results of Testing Hypothesis Five It has been established in the fourth hypothesis that the greater the ethical climate
Cultural Differences in Ethical Decision-Making Using Multidimensional Ethics Scale The objective of this study is to examine cultural differences in ethical decision-making using the multidimensional ethics scale. The Multidimensional Ethics Scale (MES) was developed originally by Reidenbach and Robin (1988, 1990) and is one of the most often used measures in business ethics research. (Lin and Ho, 2008, p.1213) The MES is an instrument found to be useful in business
However, some of the most difficult ethical issues involve speculative homebuyers who did not misrepresent their financial qualifications but who understood enough about the housing market and the direct connection between wide-scale mortgage fraud and its effect on artificial real estate appreciation but chose to profit by "flipping" homes nevertheless. The actual harm caused by any single person in that fashion is likely impossible to measure; on the other hand, such
The trainer will then focus on the steps to be taken to develop new skills. For example, if the trainer wants to talk about motivating, leading, negotiating, selling or speaking, it is best to start with what the learners do well before showing some chart on Maslow's theory, Posner's leadership practices, or selling skills from some standard package that has been develop elsewhere. Many foreign trainers make grave errors
83). Let us go through these arguments. The first argument does not suggest that a person involved in business should disregard any ethical obligations. One can economically survive in business without violating the norms of morality. Moreover, as Beverluis argues, "we are in a real sense 'doing' business ethics. For what is a 'right'? If one puts forward the claim to have certain moral rights (as opposed to legal rights),
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