Chapter 5 Discussion Case: Aloca’s Core Values in Practice 1. How would you classify Aloca’s ethical work climate? Which ethical criterion, as shown in figure 5.1, was used by the company: egoism (self-centered), benevolence (Concern for others), or principles (integrity approach)? Or, using Professor Paine’s two distinct ethics approaches, as discussed in this chapter, was Alcoa’s approach more compliance or integrity? Ans: Alcoa, from the time of its inception, has strongly focused on its values.
AICPA Code of Professional Conduct Certified public accountants (CPAs) perform a role that is essential to society. Because of the importance of that role, CPAs have responsibilities to anyone who employs their professional services. CPAs also have a responsibility to assist one another in enhancing the accounting profession, maintaining the public's confidence, and consistently fulfilling the profession's exclusive responsibilities. The voluntary association of CPAs, better known as the AICPA, has proposed a code of conduct that CPAs have chosen to adhere to. Now it is time to discuss the purpose for AICPA’s code, why it is considered the foundation of ethical reasoning, and its most important purposes.
When it comes to organizational culture affects the way workers respond and react when positioned in ethical problems Organization’s culture can disclose the unwritten ethical standards that guide workers in their decision-making. Some companies can prevent unsafe ethical behavior by changing their organizational culture. Organizational culture is the study of the attitudes, beliefs and psychology within an organization. It not only includes how workers act together, but also how they connect with others outside of the organization. Ethical standards are the code of conduct required by the organization for workers to follow.
These principles include Responsibilities, Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Accountants can use these principles as a guide when they encounter questionable requests from their clients, or supervisors, as well as avoiding any conflicts of interest that may arise (Mintz and Morris, 2011). It is important that accountants act ethically in reporting a company’s finances. Investors, as well as the general public rely on information when making financial decisions and whether to invest in a company. Out of the purposes of the AICPA Code of Professional Conduct, three of the most important include public interest, integrity, and due care.
The text provided details for why it is so important to follow the ethical norms of society. The lessons learned from this topic could be applied to the team member’s professional careers because it assures the team that our current beliefs match those of an ethical society. The lesson further confirms that business and ethics go hand-in-hand and is just the
How do you perceive the role of a business/ organisational manager, ie what things does a manager need to do and what resources do they draw upon? Submit your answer for assessment. 3. Organisations and the individuals within them should consistently demonstrate ethical behaviours. What does this mean and how can you, as a leader, promote ethical workplace behaviours?
Why? DQ 3: What are two platforms that business leaders can use to demonstrate and articulate their purpose, principles, and values? Discuss them. DQ 4: Do you think consumers hold companies responsible for their actions? Why is it important to have a corporate code of conduct?
The intention of SOX is to restore the confidence of the public and investors through the enhancement of corporate governance, improving the oversight of auditors, focusing the attention of companies and auditors on internal controls, and strengthening the penalties for noncompliance (Deloitte, 2004). Internal controls are essential for establishing corporate governance. In sections 302 and 404 of the Sarbanes Oxley Act, emphasis is placed on the importance of internal controls on corporate governance within an organization. In order to address internal control issues, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued control guidelines called the Internal Control-Integrated Framework. “COSO was formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private-sector initiative which studied the causal factors that can lead to fraudulent financial reporting.
Ethics and Compliance FIN/370 Ethics and Compliance Ethics and compliance play an immense role in many organizations. The ethics and compliance within an organization depict the standards of legal, ethical, and professional behavior of the organizational culture. It also outlines a set of fundamental principles, which is used as a basis for operational requirements and prohibitions. Therefore, most organizations define their most important guiding values and formulate behavioral standards for employees to enforce those values to the roles and responsibilities that they hold within the organization. Starbucks is one of the companies that highly upholds business ethics and compliance.
How Personal Can Ethics Get? Dr. Ronnie Jones The Business Enterprise – BUS 520 7/12/11 Strayer University Abstract The personal preferences of individuals, differences, cultural implications of ethics and how they effect organizations and their policies are a hot topic in the business management arena. There are no universally accepted principles on ethics and how to handle these situations. However, with effective leadership, and an employee code of conduct written and documented within the organization’s policies and procedures manual, one can handle an ethical situation feeling good about their decision personally, and that they made the correct decision for the organization