Ethics Of Performance Enhancing Drugs

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A scandal broke in 2013 over the Cronulla Sharks concerning the administration of performance enhancing drugs to players during 2011-2012. Some of the ethical and corporate government issues associated with the clubs actions will be explored in the following case study.

Question 1: Scandals in Australian sporting clubs

Failures in corporate governance
The five fundamental ethical principles of the Australian Accounting Profession as listed in APES 110 Code of Ethics of the Australian Accounting Profession are integrity, objectivity, and professional competence and due care, confidentiality and professional behaviour.

Integrity implies that actions are to be “straightforward and honest in all professional and business relationships”
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According to APES 110, “to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent Professional Services based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards” is the definition of professional competence and due care. Management did not exercise adequate due care for their players when faced with these conditions. The informal nature of Dr Stephen Dank’s employment intensified this negligence as he was passed the duty of care of these players although he did not hold accountable to the club. Therefore those who involved Dr Stephen Dank bypassed the Human Resources procedures showing complete disregarded of the due care principle.

Finally, APES 110 states, professional behaviour is “to comply with relevant laws and regulations and avoid any action that discredits the profession.” This principle has clearly been violated through the action occurring in 2011-2012. To advance a substance that pushes the boundaries of legality discredits not only the Cronulla Sharks and the NRL league but put the whole athletic realm into question as they concurred that to be a natural athlete was no longer good enough.

Preventative corporate governance mechanisms
As clearly outlined in the above review the Cronulla Sharks failed in a number of corporate governance practices. These failures ranged malpractice
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