Review of Accounting Ethics Essay

1045 WordsJan 1, 20135 Pages
Review of Accounting Ethics Establishing principles for ethical behavior frequently starts with a policy on ethics. Businesses acquire a policy on ethics to guide their measures and to set up a general meaning of correct versus incorrect. According to the American Library Association, code of ethics is a handbook for suitable behavior (2012). Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer Existing businesses and regulatory environment is more conductive behavior because some companies and managers feel as though they can get away with it. The unpredictable increase and…show more content…
Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach. Best Buy Chairman and founder Richard Schulze exited Monday after directors determined he used poor judgment for failing to disclose CEO Brian Dunn's personal relationship with a young subordinate, a violation of company ethics that led to Dunn's departure last month. In light of these revelations, Schulze ‘acted inappropriately,’ by failing to bring the matter to the company’s audit committee. While Best Buy made it clear that Dunn did not use the company’s resources to facilitate his relationship with the female employee, the internal probe found that Dunn’s behavior showed ‘extremely poor judgment and a lack of professionalism. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment. In April, Dunn abruptly decided to call it quits as the Richfield, Minnesota-based company further investigated his relationship with the subordinate employee. The internal probe was initiated by the firm’s audit committee and completed by an outside law firm. Dunn is expected to walk away with a severance package worth up to $6.6 million from the embattled consumer electronics chain. There is still no word on who will succeed him. Schulze said in a statement that when he questioned Dunn about his actions, they were denied and now he accepts
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