They would make sure the best choice for the company is made and not what might benefit some members of upper management. The chief technology officer would make decisions on how to use capital to make appropriate decisions for the company and not any one person. The chief marketing officer who ensure that any promotions of are done ethically and not to benefit any one person. The chief financial officer would make sure that all financial spreadsheets
Case 5.8 NextCard, Inc. 1. Should auditors evaluate the soundness of a client's business model? Defend your answer. Auditors should not evaluate the soundness of a client's business model. They are not required to have knowledge and expertise to start and maintain a successful business.
ETH501 - Business Ethics Module 1 – Case Business Ethics and Deontology TUI University Keith Broomfield ETH501 Summer 2012 Professor: Mark Friske The collapse of Worldcom brought ethical concerns to the forefront of public scrutiny. The demise caused thousands of Worldcom employees to lose all of their retirement savings, and provided a wake-up call to investors across the country that held their entire retirement savings in a single stock. The failure to educate those employees about the importance of diversification was perhaps more than mere corporate or fiduciary oversight. In this case we will discuss what the ethical problems raised in the WorldCom cases are? I am going to critically evaluate WorldCom’s ethical problems using the deontological framework.
The value of these equity markets grew at exponential rates; this was seen as risky by some analysts. The high volumes of investment caused a bubble and this bubble “burst” when the chairman of the Federal Reserve, Alan Greenspan, decided to raise interest rates making it more expensive to borrow money for investment. The internet based companies which were so heavily invested in also began to report losses. The dotcom crisis was stated to have occurred between March 2000 and October 2002. As we can see from the data UK unemployment constantly fell from January 1998 till roughly midway through 2001.
Running head: PROBLEM SOLUTION: Remington Peckinpaw Davis Inc. Problem Solution: Remington Peckinpaw Davis Inc. Mary Jacobs University of Phoenix Problem Solution: Remington Peckinpaw Davis Inc. Remington Peckinpaw Davis (RPD) was always a Wall Street force to be reckoned with. A hardware crash forced the brokerage firm to pay $2.7 million in damages to customers who could not log on to their accounts during a 2.5-hour span. The negative feedback gave the management team the drive to create a better online system to compete with the online companies in today’s market. Implementing the 9-step model for analyzing the system issues is put into place to ensure better online access to current market prices.
The main ethical issue seems to be related to the last paragraph and whether or not the board of directors can use their position on the board of the Energy Cooperative for personal gains by stating "I am calling as director of the Energy Cooperative" -the board of directors are self-employed consultants with no allegiance (duty) to any particular company. Therefore, the ethical issue is: Is this a conflict of interest, where the board of directors would be using their positions for personal gains? Or, since they have signed a statement to the effect that they have no duty to any particular company, does this negate the conflict of interest? In other words, the members of the broad directors would be using their position to gain new clients if when calling their personal potential clients, they would be able to state,"
This means that when the credit crunch struck banks were forced to reduce the amount of money they lend to people. This was due to a huge amount of “bad debts”. In other words people started to borrow too much and couldn’t repay it back. Anup Shah, from the Global Issues website says: “The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.
After a few years of success, however, the company ran into serious troubles. On May 25th of 2003, the Wall Street Journal published a story on Krispy Kreme (KKD) that tarnished their reputation. The article described the questionable accounting practices that the company employed when recording the purchase of struggling stores they franchised in the state of Michigan. The franchised stores owed the company several million dollars for equipment and interest. The article revealed that KKD booked the purchase cost as an intangible asset and failed to properly account for amortization expenses.
I.e. :- to avoid any conflict of interest and not to be biased to any party. Diligence (Professional competence and due care): To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation, and techniques and act diligently and in accordance with applicable technical and professional standards. (Albert D. Spalding Jr., 2012) Confidentiality: Professional accountant should respect the confidentiality of information that they acquired from business relationships with their clients and, therefore, not to disclose any such information to third parties without proper legal authority, nor to use such information for the personal advantage of the professional accountant or third parties. Professional behavior: Any professional accountant should comply with all the relevant laws and regulations and not to make any actions that would discrete the profession.