Enforcing Ethical Business Practices in Fraud in Financial Reporting - Causes and Solutions

613 WordsFeb 2, 20182 Pages
Ethics Video #1 One of the primary struggles in relation to ethics in the business realm (and in any realm of life for that matter) is the art of determining the morality of specific day-to-day issues— especially the gray areas within business finance. Some financial issues, however, are not so gray or they become more black or white to one person after he or she ponders the matter deeply, obtains wise counsel, learns from experience, etc. When finally convinced that an issue is either right or wrong, enforcing an opinion within a corporation can turn out to be an even more difficult hurdle to overcome. This hurdle is the premise of Kirk Hanson and Dave Price’s conversation in the 7:19 long video by Markkula Center for Applied Ethics at Santa Clara University entitled “Fraud in Financial Reporting - Causes and Solutions.” The questions posed by Hanson to Price use a scandal involving financial fraud in WorldCom to find out what measures can be taken now to prevent a similar scandal from occurring again. WorldCom “used shady accounting methods to mask its declining financial condition by falsely professing financial growth and profitability to increase the price of WorldCom's stock” (JJ, Yahoo Contributor Network). Dave Price explains that part of the problem that led to this scandal was the instability in the so-called “corporate culture” in which the lower-ranked employees’ opinions on ethics are not given as much credibility and worth as they should and where there is an

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