3. According to Carmichael, why is it so important that the public have confidence in the independent auditors of public companies? With the horrific scandals of Enron and Worldcom it is important to rebuild the public’s trust in private auditors and that the findings of the auditors prove to be correct beyond a shadow of a doubt. With confidence in independent auditors of public companies, usefulness of the audit will be intact. Auditing methods change and improve when there is a need to restore this confidence.
Just one month after alerting auditors to his findings, Lee was dismissed from his role as senior vice president of the financial division citing workforce reduction. Retaliation tactics such as this would surely discourage any future attempts by employees to speak out against Lehman executives on private or public platform. This perpetuating culture of fear and silence through tyrannical governance along with the incessant risk taking and greed of Lund and his cohorts would seal the century old organization’s doom. Question 3 The executives at Lehman’s played a monumental role in the demise of the organization. They failed to inspire a strong sense of leadership and ethical behavior.
When corruption occurs it damages the reputation of the employees and the business. Society relied upon this firm to assist in making them money but the firm was more concerned with their bottom line. Many of the individuals doing business with these firms lost their life savings and destroyed some of the trust that investors have with the Wall Street firms. It makes people have second thoughts about investing in the stock market. Another effect this unethical behavior had on these organizations been they agreed to pay a penalty of over $1.43 billion dollars as compensation to the victims.
The corporation has a strong internal environment that makes it succeed in its business venture, which shuns away other players while maintaining both profitability and competitiveness. Its main competitors include Regis Slaons, Macy’s, and Sephora. In this regard, this paper seeks to analyse the company’s potential by scrutinising the internal environment, corporate resources, competence, and other attributes that depict its strength and weaknesses in under the SWOT analysis. Internal Environmental Analysis The company has adopted various measures that enhance its competitive nature embracing different procedures and policies. It has also improved the management department by providing suitable measures that define goals and objectives of the company for it to attain increased returns (Fukuoka et al., 2012).
In the article, Devin Leonard (2005) describes the fraud of AIG and AIG’s former CEO Greenberg. Joye discloses that AIG has been improperly booking premiums it receives for workers’ compensation insurance and the CEO Greenberg knows it but does not do anything to stop it. Joye reports the fraud in meetings with Greenberg, Tizzo and the president of AIG but receives no attention. Later, Joye resigns and works for other companies. He keeps silent about what he discovers for many years but he keeps his AIG files and shows them in an investigation on AIG’s accounting fraud from Spitzer.
The offenses are harmful to not only businesses in the United States of America but to the world of business as a whole and are unacceptable. If the law had been in place, many shareholders would have been safeguarded but numerous investors lost their lifetime savings by company insiders. The corporate world is a much more secure place with regards to investing with all of the changes and modifications which are now enforced. I still think there are other actions which can be taken to protect shareholders even though the modifications have significantly improved the procedure. Businesses must develop an ethical balance so as not to take advantage of unknowing shareholders who have invested their lifetime
Competitors – they will be only interested if the Business means “ASDA” is not doing so well as this will mean more business for them , because they are offering the same services within the same area. They can use the financial statement of “ASDA” as a “bench mark” for their own performance. Owners- they are the most important stakeholders, because they have established the business and they devoted a lot of their time for the company success. They are the stakeholders, who have the higher interest for the business to raise on profit and value. Employees and Managers- their interest is that the company provides them with decent live hood.
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.
This type of culture provides an excellent foundation to breed innovation. Riordan uses business ethics to interact with other companies to sustain healthy relationships. Most of these ethical considerations are seen as common courtesy. Some unethical behaviors that Riordan are trying to avoid are lying, falsifying information, and stealing/theft. HRM plays a major part in resolving these issues in order establish an ethical
It is important for their corporation to take care of their workers and have a reputation of treating them fairly, which is important to the customers. Wal-Mart is a very successful company that needs to pay attention to their workers feedback instead of squeezing every cent they can out of them. The better they treat their employees, the more customers will