(b) What are the ethical issues involved in this situation? The ethical issues involved in this situation pertain to following accepted accounting principles. Violating the generally accepted accounting principles to satisfy a short-term personal or company would create misleading financial statements. This situation would therefore be unethical. Robbin Industries is jeopardizing itself by not properly reporting the advertising costs.
Davey Jones could also argue misrepresentation—he was induced to enter into the contract based on representations made about the quality of the ship. There appears to be no evidence of fraudulent intent. As a result, Davey Jones will have to plead either innocent or negligent misrepresentation. Since he appears to want to cancel the contract, he can plead either innocent or negligent misrepresentation. If he claims fraudulent misrepresentation and is unsuccessful, then Davey Jones will likely have to pay Captain Jack Sparrow Inc. its full legal costs.
If this is an acceptable form of payment, how might you ensure that it is ethically sound and that no power differential exists between you and the client? According to licensing boards, Consumer protection agencies, risk management experts, and ethics committees, fair exchange bartering (all bartering for that matter) is largely frowned upon, as there is the potential to create power disparity (power differential) between the councilor and client (Zur, 2011). Moreover, there is a heightened potential for disclosure concerns, boundary
Step 6: What are the consequences of each course of action? Under Option 1, the true values would be reported. He would not maintain the requirement of the bank loan, which may have a negative affect on the financial state of his business. However, Josh would maintain his values and reputation, which best serves the interest of the shareholders. Under Option 2, false values for the current ratio would be reported.
The PCAOB is now issuing its own auditing standards, including establishing standards for audits of the effectiveness of internal control over financial repprting. 2-10. Generally accepted auditing standards have been criticized by different sources for failing to provide useful guidelines for conducting an audit. The critics believe the standards should be more specific to enable practitioners to improve the quality of their performance. As the standards are now stated, some critics believe that they provide little more than an excuse to conduct inadequate audits.
Mr. B. was vulnerable when he was left unattended. Finally, the LPN on duty displayed a dangerous knowledge deficit by ignoring the de-saturation alarm on the oximeter. Improvement Plan Using Change Theory Change theory helps to effectively organize ideas that bring about long-term change. Implementing change theory first requires an identified driving force. In the scenario, Emergency department staff members were likely shaken by this poor outcome of Mr. B., and would be motivated to change to a safer model just to avoid a repeat in the future.
o A tendency to avoid reversing changes even if it was not the best choice o In reality, past expenditures are sunk costs and the organization should use a clean slate to look at new choices, but to the manager, this will come at great personal loss. • This relates to strategy because it is important to understand the effect management has on it. o If a manager will suffer personal embarrassment or a loss by adopting a new (although better) strategy, they are more likely to simply stick with the current course of action. o This can be avoided by assessing and addressing the problems of an organization prior to major investments being made o Implication on strategic choice, as they can act for the betterment or detriment of the organization. o Differences in manager’s preferences are specific to their individual personalities, experiences and situations.
Be proactive in customer service, this makes for long-term customers. Complete Ethical Dilemma on page 113 If Clive feels like he is doing something wrong by avoiding certain areas in his presentation, then he is definitely being unethical. Clive knows about a problem with the machine, and it would be wrong of him to walk around the problem just to make a sale. Omitting the truth is just as bad as lying. Customers will not trust a company that lies to them.
Business Ethics Individual Assignment Due date: Thursday, November 29, 2012 Submitted by: Dwight S. Williams Summary of “The parable of the sadhu” An analysis of the parable written by Bowen H. McCoy has many thought-provoking discourse and debates but I would like to highlight three main points. 1. A lesson in Corporate Ethics --- if the organization does not inculcate a value system then managers may not be supported when the organization is faced with simple or complex ethical issues despite the moral standards of individuals. Ultimate moral standards may be similar but implementation approaches may differ and so moral justification must be based on sources external to the conscience of individuals. However, such a value system must be cognizant of and be sensitive to the individual needs and manage them to the benefit of the organization.
(INTRO) One of key accounting activities this WorldCom case points out is how WorldCom capitalized leased lines which brought little or no value to the organization, but were accounted as capitalized assets, and the impact this can have on external users. “To maintain and broaden public confidence, members should perform all responsibilities with highest sense of integrity.” (AICPA.com) By capitalizing the costs of these leased lines instead of it would have shown a significantly lower net value of the company. It would have negatively affected cash flows and all the ratios. This activity certainly discredits the profession. It does not offer the fullest disclosure, objectivity, and transparency.