Effect of Unethical Behavior Article Analysis

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Effect of Unethical Behavior Article Analysis Ladyv Williams Principles of Accounting II ACC/291 July 1, 2013 David Fewkes Effect of Unethical Behavior Article Analysis Unethical behavior within a corporation can, and has cause the worst negative impact on many corporations. When things are done and practiced in an unethical manner the entire corporation can suffer. Unethical behavior can cause public disgrace to the corporation. It can ruin family lives. It can cause a corporation to have large financial losses. There are many reasons why unethical practices or unethical decisions are made within a corporation. Some of these decisions can and may come from greed. “Some people enjoy having a lot of money and will break the law to get it. Whether it being done on individual base or within the context of a multinational corporation offers the opportunity to “cook the books” and take a little or a lot more for yourself without actually pointing a gun or breaking into someone’s house. The white-collar nature of accounting crimes makes them very tempting because nobody seems to be getting hurt. The presence of large amounts of money activates the greed centers in some people’s brain. What Are The Causes Of Ethical Lapses In Accounting, (2013). Managing earnings (or “cooking the books”), is simply a way of making things look better than they actually are to keep stockholders happy, entice new investors, meet budget, and most importantly, earn executives bonuses. Not all book cooking is motivated by greed. By making revenues appear larger than they actually are, a struggling company could stay afloat with investor’s money until it can turn a true profit. Here is a great example. Imagine you’re a kid with a lemonade stand and you want to build a roof over it so that you and your customers aren’t in the hot sun. You don’t have the money because

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