Meaning that the number of people working is undetected. The downside to this is the macro economic policies are likely to be too expansionary and social policy too excessive. The second issue is these underground economy wages are escaping taxation which causes a loss in tax revenue. Lastly it shows that the citizens and the government have an unhealthy relationship. The taxpayers are not happy with the public services from the government and seek help with out having to pay taxes.
Does Power Corrupt? Lord Acton has said that “Power Corrupts and Absolute Power Corrupts Absolutely”. The abuse of power by those in power has caused great suffering and is one of the most common themes of history and politics. But unfortunately the list of leaders who were not eventually corrupted by their power is rather short and it seems to be a fundamental human fallacy that people are seduced by power and once they conquer it, it corrupts their character. Resisting the temptation to abuse one’s power is a challenge that only few people live up to if given the chance to do so without danger.
Effect of Unethical Behavior Article Analysis Effect of Unethical Behavior Article Analysis Creative accounting is not a new accounting practice, but it can be detrimental to the companies that use it. “Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences” (Krantz, 2002, para. 1). Internal unethical accounting practices include under and overstatement of revenue, expenses, liabilities, and misuse of capital. External unethical practices include manipulation of financial market regulations, investment and trade fraud, and kickbacks.
It is the practice of obtaining power, influence, or other personal gains through illegitimate means, often at other people’s expense. The more widespread and acceptable corrupt methods are in a given society, the more corrupt that society is said to be. Corruption has resulted to crises in many parts of the world, and those on top have used it to take advantage of others (Corruption Watch, 2013). Corruption exists in any institution where legitimate means of getting ahead are circumvented by allowing individuals to enhance their personal power with money or favors. As a result, it becomes harder or impossible for others to operate above board.
(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.
In order to be competitive and also profitable, companies need to find ways to reduce or eliminate costs associated with routine and repetitive business transactions. Those transactions often fall in the areas of purchasing, billing, accounts receivable, and accounts payable. It is in these areas that the confusion caused by translating part numbers is most noticeable. Time spent translating one part number to another part number for the same item adds very little, if any, value to the transaction. The errors that result from errors in translation are the cause of many problems in invoicing and making payments.
Subsidies and price supports have existed for centuries, but now they are incredibly wasteful and completely outmoded for world markets. Subsidies, fostering the protection of domestic industries have a negative effect on employment, the budget deficit, and other economic aspect. The economic implications of subsidies are significant. Government subsidies given to the private industry usually end up hurting the economy. A subsidy sponsors unprofitable business enterprises and often favors one firm over another.
However, there are people who are feared it will not be good and has an opposite impact for all concerned. It looks like a win-to-win scenario; it creates a good amount of jobs needed and reduces tariffs that benefit all members involved, but some are concerned about the agreement will benefit some specific groups and some will not. The problem is while the cost of labors in the US is expensive the labor’s cost of neighbor countries is cheaper; this leads to the jobs loss for the American people and workers. For example, Columbia is still one of the most dangerous places on Earth because of the government and its persecutions for those who against it; just like Chinese government. Next, the working condition for Columbian workers is poor and that concerns of some the human right group.
Though the lower cost makes the exporting countries’ products competitive in the global market, the profit has been earned at the cost of individual’s wellbeing, social stability and development of the relative industries. The unfair situation that the workers in the exporting countries are confronted with has become one of the most severe ethical issues. It is unethical for employers to take advantage of workers’ weak awareness of their own rights and poorly forced law. The ethical issue was mainly arisen in three aspects: low payment, bad working conditions and overtime working. Child labor caused many other ethical issues in the society.
When an individual is arrested, the labour force of the country is enfeebled and thus results in less profits in the economy. There is a saying ‘prevention is better than cure.’ If preventative measures are taken then less strain would be put on the economy to deal with criminals. It is know that there is a lot of corruption within the governmental services such as the army, police service and judiciary. If the society must rid itself of criminals the corrupted individuals within these services must be detached. This is where the government plays a role in attempting to confiscate the positions of the officials in the system who endeavor to promote crime.