Legality and Ethicality of Corporate Governance Eth 376 Week 4
975 WordsAug 10, 20134 Pages
Legality and Ethicality of Corporate Governance
The United Thermostatic Controls Company is a publicly owned company that manufactures and markets residential and commercial thermostats. As a publicly owned corporation, United Thermostatic Controls mutual stocks be listed and traded on the New York Stock Exchange. Frank Campbell is the director of the Southern sales division; however the Southern sales regional economics getting worse, the pressure to achieve sales revenue targets has created stressful and possibly unethical situations by Campbell. Campbell has pressure because he may not meet budgeted revenues for the fourth quarter, he researched purchase orders supposed to receive during late November and early December. With those…show more content…
Cupertino is serious about his responsibilities and obligations for coordinating the work of the internal auditing department and the external auditors. Plus, he has responsibility to the public of having accurate financial statements.
The internal and external stakeholders could be potentially negatively affected because of what Campbell decided to do with the transactions, just to have enough or over enough revenue in sales. The production and shipment of the transactions and pushing them out to the customer prior to their desired receipt date theoretically will cause loss of future orders from the customer, in turn losing future revenues. Additionally, possibly losing prospect customers from the negative feedback from the customers who did not receive moral customer service that they deserved. Both the internal and external stakeholders will be affected by loss of business because it will be lose in revenue and could ruin the company.
It was clear from the beginning of this case that Campbell and Lorenzo acted unethically and put the company at risk for future investigation and losses of revenue. It was apparent that they were thinking short-term of the goals than having a long-term goals for the company. Campbell was only thinking about what numbers they needed but he was not taking any consideration of the public interest for the company financial state. Cupertino was put into a position that he believed that he