United Thermostatic Controls Case

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RUNNING HEAD: UNITED THERMOSTATIC CONTROLS CASE United Thermostatic Controls Case ETH/376 United Thermostatic Controls Case Meeting sales and revenue goals for companies throughout the United States are a common objective to achieve. However, when demands start declining, the chances of meeting goals began to decrease. Management will work hard to meet or exceed expectations, but there are some who will do whatever it takes to meet company goals. “The incentive to commit fraud typically is a self-serving one” (Mintz & Morris, 2011). United Thermostatic Controls is a publically traded corporation that specializes in manufacturing and marketing thermostats for residential and commercial consumers. There are for regions that are decentralized in the U.S.: Eastern Sales Division, Western Sales Division, Southern Sales Division and U.S.A. Sales Division. Each division has their own expectations on goals for sales where all but one division is meeting expectations. The southern division has seen decreasing numbers in sales and having difficulty meeting sales targets. The company is very assertive with increasing revenue and encourages each division to work hard to meet sales goals. The company is publicly traded and failure to meet annual sales goals can cause the stock price to drop, affecting bonuses for senior management. The company will face ethical and legal challenges in how to maximize the last quarter of 2010 to meet sales goals. Frank Campbell, Director of Southern Sales Division, has recognized the decrease in sales and desperately seeking to meet sales goals. Because of this pressure, he pushed two orders to be posted in December 2010. The two orders were not to be fulfilled until February 2011. He pressured the accounting department to recognize the sales in December 2010 and to ship out the products to the consumer. This

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