Again, note that the actual state rate is reduced by 25% to allow for the deductibility of state income taxes on the federal income tax return. If Dana’s state tax rate increases to 10%, corporate bonds are still superior to Treasury bonds. 50. [LO 1] At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current
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
INTRODUCTION At times we may wonder what is meant by ethics, why accountants need ethics in their business life or even how they are related. As we may know, definitions of ethics vary with time but in most cases it is defined” With these definitions we can understand that basically ethics is knowing what is right (Mitchell 2009). Ethics in accounting and finance a global concern today (Onyebuchi, 2011). However, the accounting and finance sector has over the past years developed a culture of ethical misconduct (Gianneti & Yue Wang, 2014). According to Anup & Chadha (2005), Ethical misconducts often lead to corporate scandals that come with serious consequences e.g.
1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe were most responsible for that crisis. Briefly justify each of your choices. Out of the many parties in the league and the major force behind the debacle of Enron concern Andersen's, the accounting and auditing firm that once deserved name in the industry for its conscience in accounting professional services and auditing.
Why are ethical behaviour and government regulations important to marketing? Ethical behaviour is used within many businesses to ensure the business provides accurate information to customers as well as other businesses to engage in fair competition. It is important for a business to have ethical behaviour in relation to the marketing side of the business so that goods produced, promoted then sold do not provide misleading information. If identified by consumers, it can have a major impact on all functions of the business as it has the potential to ruin the business’s reputation placing the business at a declining stage of the business’s life cycle. In a similar manner government regulations are also important and must be overviewed by all functions of a
There were also unethical issues involving the entity that was supposed to secure and watch over those that are investing our money. That entity, known as the Securities and Exchange Commission, failed to properly investigate certain claims that were made against Madoff long before this scheme broke wide open. The SEC was warned numerous times about the inconsistent information from Bernie Madoff. Ethical misconduct within this case has made more investors aware of what is needed besides forking over large sums of money and charitable contributions to someone who claims they are doing the work of the people. Investors now know that it is also their job to challenge and be more “in tune” to what their money is doing and how their money is working.
Everyone one from their employees all the way up to upper management and partners must adhere to the code of ethics put into place at the corporation. Microsoft recognizes that they face intense competition and will continue to face harsh competition across the markets of products and services, but yet they refuse to bend any rules in order to make it to the top. Microsoft also has a code of standards for their finance division that is separate but in addition to their ethical standards. The finance code of ethics demands the executives and the employees to act in a responsible manner and to avoid conflicts of interest. It also demands the employees to abide by the laws and regulation set forth by the state and federal governments.
According to Robert Solomon, “Good Ethics is Good Business” and “unethical conduct hurts business as a whole”. I agree with his point of view because in the business world, we have witnessed big companies fail and fall down due to their unethical practice. I also agree that being aware of the 3C’s, which are Compliance, Contributions, and Consequences, is the best tool to define Good Ethics in Business. Solomon used Break Breaker Inc. case to prove that unethical business strategy will lead to the quick failure of business. 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.
However, it’s complicated; the term “culture” means different things across such a range of disciplines and ways of thinking that it is among the most complicated words to define in the English language. Culture means different things to different audiences, as Peg Neuhauser said: “For most people, corporate culture is a vague and slippery concept at best. Almost everyone agrees that it is an important factor in the success or failure of any organization, but many people have difficulty pinning
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.