These same individuals trusted and respected Bernard Madoff and yet he showed less than the mutual respect a professional investor should show toward his clients. Family members were not immune to his scheme. In fact, other family members were encouraged to invest and also bring in new investors into the fold of his deliberate hoax of profiting off of the rich and unassuming. Madoff showed that he lacked care and empathy for his clients, clearly a pure dereliction of duty, to provide the best information and protect investor’s financial investments. There were also unethical issues involving the entity that was supposed to secure and watch over those that are investing our money.
Break Breaker Inc. to some extent obey with some legal rules, but failed to comply with principles of morality and community, contribute to the society by producing honest high quality services, and account the consequence of damaging their reputation. I think that Solomon’s argument is fairly accurate, but everyone’s views are different on this. Some actions may be acceptable to some but unacceptable to others. Ethics provides the bigger picture in the business life and it must be understood. In my opinion, nothing is more dangerous to a business than a bad public image caused by being unethical.
It establishes a fundamental systems and processes for presenting and detecting misconduct, for investigating and disciplining, and for recovery and continuous improvement (Ferrell, Fraedrich, & Ferrell, 2011). The corporate governance did not protect the stakeholders because there was embezzlements from some employees and greed from the executive leadership. There was a lot of turnover at the executive level which made the organization weaken and may not able to carry out its mission. Not having this process in place to detect when there was some unethical acts being taking place has caused a lot of turmoil for this no-profit agency. There was not process in place to follow for recovery for when a mistake was discovered or a problem was reported.
Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important. Clearly, SOX has both positive and negative effects. However, the implementation problems of the Act do not provide sufficient reason to weaken or eliminate SOX requirements or to adopt significant exemptions based on company size. 2. What advantages would China offer foreign companies to list on its exchanges?
This response likely had the added effect of offending their employee base by suggesting that their employees would utilize the program to steal from the company. This offense has the significant potential for lowering employee engagement and retention. Clearly, Company Q is not educated in how ethical conduct and social responsibility by a company can actually boost its profits. Their current position only serves to perpetuate the long lived consumer mind-set that companies are inherently dishonest and only have eyes on profit. It is unrealistic to believe that Company Q can instantly jump from their current posture to one of deep and meaningful social responsibility and corporate ethics.
When revenue is less than expenses, there is a problem. Identifying the overages in expenses is crucial because these costs have a negative impact on the performance indicators profit margin and return on equity. This is what the CFO, Sullivan, was trying to avoid. The purchase of the line leases was a bad business decision that caused a major problem for the company and rather than deal with the consequences of the bad business decisions, Sullivan and others tried to hide the problem. The internal controls monitoring provided by Ms. Cooper and Mr. Morse uncovered the fraudulent transactions meant to hide the losses incurred when the telecommunications business fell off.
The stress of the audit partner is tremendous and choosing that profession is one that I would prefer not to undertake. The anxiety and pressure to certify that a company’s financial records are in good standing can be daunting. 3.) Independent auditors are sometimes perceived as the “necessary evil” by corporate executives because of the possibility of exposing corruption. To change this point of view an auditor can try to explain their intent to educate and improve the company’s policies, which can in turn lower costs.
Business Research RES/351 Business Research Business Research Ethics Ethical behavior has been overlooked in the past, but due to unethical business research, the manners in which businesses are run have changed. Unethical behaviors in business were becoming too common, so government laws and regulations were put in place to help regulate efforts of preventing these unethical practices. Research misconduct is both illegal and unethical. The government defines research miscount as "fabrication, falsification, or plagiarism." Unlike deviations from research methods, misconduct is always deliberate.
The lack of ethical leadership at Enron enabled a culture to develop among management that it was all about the money! While the desire for money, greed and power is not a new concept in corporations, Enron’s failure was not simply the result of a lack of ethical rules and legal guidelines and requirements. At Enron, leadership had created a culture that pushed the envelope, a culture that encouraged and rewarded risk taking, a culture that was fixated on the bottom line and not ethics. The central problem at Enron was not a lack of awareness, or a lack of moral reasoning, but rather the absence of moral leadership and the neglected development of a moral corporate culture. Ethical thinking and Critical thinking are an essential part of leadership.
CREATING SHARED VALUE Is CSV an attempt to legitimize bad business practices? According to the article “Contesting the Value of creating shared value”, in Michael Porter point of view, “CSV compliances with the law and ethical standards, as well as mitigating any harm caused by the business”. In fact, there is a viscous circle between business and society and companies have being seen as creating profits at the expense of the community, and not creating profits that automatically benefits the community. Because of that, the government has increasingly perceived business as a problem, as a source of bad practices in society and starts to regulate, to control the tax, so political leaders are unable to pursue business in friendly public policies because the political environment almost forced them to be tuff the business despite the fact that business and society need each other. There are many things that company can do that don’t involve the trade-off, and that’s what company should focus on.