EXAMPLE: HIGH DISTINCTION PAPER ETHICAL ISSUES QUESTION 1 Richards adopts a teleological-parochialism position 1 to justify that his actions are ethical, 2 even though they are illegal (Baugher & Weisbord, 2009). 3 Richards argues that his actions are ethical as they resulted in desirable consequences, in the form of better sales/performance figures, which met analyst forecasts and positively affected shareholder value (Radtke, 2004; Fernando, Dharmage, & Almeida, 2008). 4 He acted in the interests of his ‘in-group’ (other executives/managers), maximising their performance-based compensation, 5 at the expense of others (Barnett, Bass, & Brown, 1994). 6 Richards also claims that his actions were not serious, as recognising revenues …show more content…
Overall, his actions appear to be unethical. 13 Accounting flexibility refers to managers’ discretion in choosing among numerous acceptable accounting policies that cover the same subject. 14 If CA had achieved the same financial results within “allowed accounting flexibility”, Richards’ actions would be legal; but just because accounting is within the rules does not mean that it is ethical. Furthermore, legality is a continuum, and the line between legal and illegal practices is blurry, and subject to individual interpretation. Legality and ethics are also not co-extensive, and thus it would not significantly adjust my argument (D’Souza, Jacob, & Ramesh, 2001; Rizzi, 2002). 15 11 Shareholders were led to believe that CA was more profitable than it was, and consequently suffered enormous losses. They had either paid more than they should have for the stock, or held on to it when, if they had known the truth, they would have sold it. 12 This extra compensation was at the expense of shareholders. 13 Richards’ actions would be considered unethical under the utilitarianism position, as his actions harms others, and under deontological positions, as he did not follow rules. In this sense, Richards’ actions would be regarded as much more serious under a deontological position, than under a teleological-parochialism position. 14 Accounting flexibility, or financial reporting choice, may also
S.P. is admitted to the orthopedic ward. She has fallen at home and she has sustained an intracapsular fracture of the hip at the femoral neck. The following history is obtained from her: She is a 75-year-old widow with three children living nearby. Her father died of cancer at age 62; mother died of heart failure at age 79. Her height is 5’3 and weighs 118 pounds. She has a 50 pack year smoking history and denies alcohol use. She has severe Rheumatoid Arthritis (RA) and had an upper GI bleed in 1993 and had Coronary Artery Disease with CABG 9 months ago. Since that time, she has engaged in “very mild exercise at home.” Vital signs are 128/60, 98, 14, 99 degree farenheight (32.7 degrees C) SAO2 94%
Stephen Richards’s actions were extremely serious; manipulating Computer Associates’ quarter end cutoff to align CA’s reported financial results with market expectations by violating the generally accepted accounting principles and their financial reporting responsibilities. According to the U.S. Securities and Exchange Commission, Richards with other CA executives extended CA’s fiscal quarter, “ instructed and allowed subordinates to negotiate and obtain contracts after quarter end while knowing, or recklessly disregarding the fact that, CA would improperly recognize the revenue from those contracts, and failed to alert CA’s Finance or Sales Accounting Department that CA salespersons
As a member of management Clive Jenkins is responsible for boosting employee morale to ensure that company goals are met
4) Due to the rebounding industry growth rate of 15% in 2011 comparable to the explosive CAGR of 16.1% from 2003-2008 combined with the partial opening of the new plant in Slovenia, OH Rates are most likely to increase with higher volume orders and larger scale operations. This in turn will decrease our bids and make it more attractive for prospective clients.
Thomas Foods is a third party entity that will best benefit working off of a Purchase Order over trying to change their accounting procedures entirely. With a
Sony have been known worldwide as a Japanese multinational company, its efforts trying to expanding business in United States, have made that Sony acquires CBS Records and Columbia Pictures. Thus, creating Sony Music and Sony Pictures, which represent Sony entertainment. This involved to the company in $1.2 billion of debt, and assigned goodwill assets for $3.8 billion.
1. A company’s ending accounts receivable balance and the period’s advertising expense would be found on which financial statements, respectively
Such an intense focus has been placed on quarterly earnings as an indication of a company’s success by everyone from analysts to executives that ethics have for the most part been thrown out the window, sacrificed to the all important number, i.e. earnings per share. This is the theory in Alex Berenson’s book “The Number: How the Drive for Quarterly Earnings Corrupted Wall Street and Corporate America.” This number has become part of a game to be played, a figure to be manipulated – beat the number and Wall Street all but throws a parade, miss it and a company’s stock may be abandoned. Take into account the incentives that executives have to beat the number and one can find plenty of reasons to manage earnings.
IgG – funtions in neutralizing, opsonation, compliment activation, antibody dependent cell-mediated cytocity, neonatal immunity, and feedback inhibition of B-cells and found in the blood.
Starting a business can be an exciting time for an entrepreneur but new market concepts and opportunities are useless without the strategies to operate the company to success. Day to day strategies are needed to achieve the organizations goals. The largest expense of any company is usually the compensation strategy. The face of the retail company is the service staff and their relation to the customer are paramount to success. Firms are in competition to find qualified, engaged employees. The pressure for an organization to get it right is the key to competitive success. Companies now look to creative compensation strategies to create a environment that employees want to
f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should
Like several companies, Nortel stipendiary their executives with stock choices (Collins, 2011). This compensation solely inspired the tendency to be but honest regarding the company’s finances. author closely-held stock choices that solely inspired his actions to fulfill or beat the benchmark set by analysts. If Nortel’s earnings showed to be higher than the benchmark, Nortel’s stock costs would rise creating the stock closely-held by management to be even a lot of valuable. By tweaking the books to indicate the road earnings price as critical the allowable accumulation price he created the stakeholders assume that the corporate was creating extra money than it had been. “Nortel ne'er incomprehensible a benchmark over the sixteen quarters (Collins, 2011).” it had been too tempting to bump the numbers up so the stocks gave the impression to be value over they were. “Nortel’s accounting practices junction rectifier to AN investigation by AN freelance review committee, that found that insubordination with accumulation and accounting fraud were undertaken to fulfill internally obligatory earnings targets (Collins, 2011).”
This paper, prepared by the Ontario HR Manager for Scanim, argues the company is ready to start the new Inbound Service and Warranty Claims Contract for Chrysler Corporation. Scanim management’s recognizes
1. The basic purpose of Generally Accepted Accounting Principles (GAAPs) is to: a. Minimize the possibility of the business becoming insolvent b. Ensure the financial statements include the type of information that is best suited to every type of business decision c. Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements d. Eliminate the need for professional judgment in preparing financial statements 2. The accounting principle of matching is best demonstrated by a. not recognizing any expense unless some revenue is realized. b. associating effort (expense) with accomplishment (revenue).
Financialization has been taking place since the 1980s (Froud et al., 2006) and involves interaction of financial intermediaries with management consultants to generate shareholder value (Jensen 1988). Shareholder value can be increased by making a firm more efficient for example cutting costs and boosting profitability. Kraft took over Cadbury in January 2010 after Cadbury Chairman Roger Carr accepted a £11.9 billion bid worth 850p per share. Cadbury, founded in 1831 (Cadbury 1999), was operated under strict Quaker values placing emphasis on employee welfare and product innovation leading to a product and altruistic spirit within the firm. Financialization resulted in the market for corporate control (Jenson 1988), which gives empowerment to the shareholders, and ultimately opened the door for Kraft’s takeover of Cadbury. In this essay I will discuss the existence of Cadburys altruistic spirit when the firm was taken over and the factors which caused the takeover relating to shareholder values. I believe that the takeover didn’t result in the destruction of the altruistic spirit because financialization and share value have been diminishing this spirit before Kraft took over Cadbury in 2010. To reach this conclusion I will firstly show how shareholder values outweigh an ethical business culture when firms are influenced by the capital market. I will follow this up analysis of how Cadbury