When unethical decisions are made, everyone involved in the corporation and its well being are affected in a negative way and will jeopardize the well being of the business. “Ethical responsibilities of an organization’s management are to follow the generally held beliefs about behavior in society” (Wheelen and Hunger, pg 58). An ethical role within the corporation is not mandatory, however it is practiced in most businesses would be giving employees notices of
According to Investopedia, a stakeholder is a party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations. (Investopedia 2012) The familiar obstruction that develops with having several stakeholders in an organization is they have an assortment of self - motivating agenda’s that may not be congruent to each other. The fact is that they or more than likely in discord with the other faction.
| Managers answer only to shareholders and act only with shareholders interests in mind. | | | c. | Managers are responsible to larger society, but serve it best by being responsible to shareholders. | | | d. | Managers answer to larger society and should serve larger society. | | | status: incorrect (0.0) correct: b your answer: a feedback: Incorrect. This is a description of the enlightened self-interest approach to social responsibility.
As a C-corporation the business, not the owner, would be held liable for any financial damages. Any accidents involving employees or customers would be the responsibility of the corporation to settle. Financially speaking incorporating is the best option because as a sole proprietorship the owner is currently paying a much higher tax rate versus the corporate tax rate. With the tax code being different for corporations there is better profit retention and security. The client also mentioned the issue of partnership and the selling of stock in order to expand the company.
Sarbanes-Oxley Act reiterates the importance of the cost of law to the companies and to the future of the economy by placing officers in charge of such obligations. “These officers require lower-level employees to certify accuracy of those portions of the financials for which they are responsible, and are creating a practice of a series of meetings down the line to discuss control issues” (Carney, 2006, p 144). Many other sanctions have been put into place to regard the cost of owning a business and the importance of safekeeping of financial records. “The law also forbids corporate loans to officers and directors, requires issuers to disclose a code of ethics for senior financial officers or explain why one has not been adopted, and prohibits adverse employment actions against whistle-blowers” (Carney, 2006, p 144). The adaptation of pushing such a law into firm action can make for either a better future for the economy or for a fiscal cliff as it is now
Ch. 23: Exercises 23.10 & 23.12 of Managerial Accounting: The Basis for Business Decisions ACC 400 Week 4 Team Assignment – Interpreting Financial Statements Report The CEO of your organization has asked your Learning Team to analyze the two companies assigned to your particular Learning Team. As an investment, your organization may be interested in purchasing some stock in one of these two companies. Resources: The financial statements for your Learning Team’s assigned two Companies found in the Course Materials Forum. Financial Accounting: Tools for Business Decision Making.
Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate. Government price controls distort the economic theory of supply and demand. Supply and demand is a significant underlying feature of free-market economies. This theory allows individuals and businesses to make decisions based on self-interest. Businesses often pay individuals a wage based on current market standards.
Among solutions to the agency problem in publicly-held corporations are all of the following EXCEPT Answer a. stock options. b. performance shares. c. cash bonuses tied to goal achievement. d. bonuses based on short-term results. 4 points A more recent issue that is causing major problems in the business community is Answer a. the privatization of ownership.
In this task, I will be describing how political, legal and social factors are impacting upon the selected business activities. The two businesses which I have chosen are, Oxfam and also Tesco. Political factors for Tesco Taxation Large business such as Tesco is largely affected by the government taxes, such as income taxes and business rates. Tesco is a large business which means that a lot of corporation tax taken away from their profits. Corporation Tax is a tax on the taxable profits of limited companies and other organisations.
If the officials who are to keep the corporations in check are run by the giant companies themselves, the concept of checks and balances can almost be discarded. If the public is informed of what is going on and reacts to the bribing events, then the big companies, who hire the lobbyists, can be forced to alter their mindset by their customers, and the special interest lobbyists can become benefactors for the general