Abstract In this essay is to discuss Business Ethics and Corporate Social Responsibility (CSR) by using Anglo-American and Primark as examples. Both companies have a strict policies on ethical behavior which can be used as a catalyst in how to conduct business ethically. Some of the key things I will emphasize what is meant by ethical business. Then I will analyze is how Anglo American and Primark apply ethics into their business. Moreover, The costs and benefits to an organization when they behave ethically.
Empress Luxury Lines Strayer University MGT 500 Abstract Antonio Melendez is faced with a serious ethical and legal dilemma. All indications are that a supervisor and the CFO at the company Antonio works for, Empress Luxury Lines, are collaborating to commit insurance fraud. With that being said there will have to be some strategies developed that will address the situation at hand. Once there is a strategy identified there will have to be some pros and cons in each of the strategy. These pro and cons will have to be measured by risk and how it will effect the company.
Many times companies break accounting procedures and falsify their financial statements in order to please both internal and external users. Even though this is a violation of the SOX act of 2002, corporations still chose to engage in these activities. The final thing we learned about is the ethical decisions made behind financial reporting. The AICPA Code of Professional Conduct was put in place to make sure companies have a standard to follow when creating financial statements. Legality Financial reporting activities and standards Earnings management has been used as the manipulation of the current standard of financial reporting established by G.A.A.P.
Ethical Issues in Organizational Business Robert A. Lanese BUS610: Organizational Behavior Dr. Prakash Menon November 18, 2010 Ethical Issues in Organizational Business The main focus of this paper is to determine why ethical issues are of a major concern in organizations, what individual influences impact ethical behavior, and how can organizations influence ethical behavior in employees? “Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality-that is, concepts such as good and evil, right and wrong, virtue and vice, etc.” (www.wikipedia.org). I personally believe that ethical issues are of major concern within a business organization because it is ethics which help define and drive a company. For example, the collapse of Enron was a result of huge losses being placed within fake companies. Enron is a prime example of how the temptation of greed and the actions of irresponsible behavior can grow and spread like an infection from a corporate boardroom.
- Compliance Department (1,2) Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. The Third Line of Defense helps the Bank to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. How & Who: Develop policies for periodic internal audits (5) covering: Adequacy of bank’s policies, procedures and controls identifying key risks, addressing the identified risks and complying with laws, regulations and
McBride will need to ensure that changes are made, compliance is researched and built-in the strategic plan, and the shareholders will be satisfied with the new MFSI. Situation Analysis Issue and Opportunity Identification The first issue facing MFSI is the need to implement a strategic plan to ensure that the company is complying with all the corporate governance bylaws. MFSI has the opportunity to turn the company around and make sure that they are applying all regulations with honesty and integrity, thus letting their customers trust the way they conduct business. MFSI also faces the issue of a lack of ethical compliance. MFSI has the opportunity to attract more companies
3. What internal processes or systems do you recommend to prevent fraudulent practices such as those present at WorldCom? Why were these practices not detected sooner? The internal audit department should have been required to report directly to the Board or CEO, and not to the CFO. I also think that the internal audit department should have had full access to the accounting system.
A code of ethics supplied by a business is a specific kind of policy statement. A properly outlined code is, in effect, a form of legislation within the company required by its employees, with specific agreements for violation of the code. Violation of any organizations Code can cause legal accusations or dismissal from a job. The Ethical Standards of Human Service Professionals provides specific “rules” to follow that will protect the client’s welfare with respect and integrity. With the client’s best interest at heart, the helping professional should begin the relationship by establishing mutually agreed-upon goals, while informing the clients of the limitations of the relationship (Woodside & McClam, 2010).
Impact of Unethical Behavior Analysis Impact of Unethical Behavior Analysis With a rich history in financial scandals, organizations need to protect themselves against bad publicity. The scandals highlighted the need for legislation. “Congress passed the Sarbanes-Oxley Act (SOX) to provide greater protection against corporate and securities fraud for public companies, mandating stronger internal controls, independent audit committees, the creation of anonymous hotlines, and, importantly, the implementation of safeguards against retaliation.” (Bannon, Ford, & Meltzer, 2010). While the effectiveness of the legislation has been heavily debated, there are still opportunities for unethical behavior. Top executives of companies are hired to improve performance and the pressure to do so can lead them to take unethical action to ensure their success.
STRATEGIES FOR EMPLOYEE THEFT PREVENTION AND DETECTION To reduce employee theft, it is essential that appropriate preventive and detective techniques are in place. According to Managing Business Risk: A Practical Guide, a report sponsored by The Institute of Internal Auditors, The American Insitute of Certified Public Accountants, and Association of Certified Fraud Examiners, prevention emphasizes policies, procedures, training, culture setting, and communication to prevent theft from occurring, while detection involves activies taken to identify theft that is occurring or has occurred (IIA, AICPA, & ACFA, 2008, p.30). Organizations that want to prevent employee fraud must plan carefully and continually monitor the effectiveness of their anti-fraud controls. To fully achieve a corporate culture that emphasizes and reinforces employee honesty, companies should develop theft prevention strategies that could be “effectively implemented while minimizing the impact of [potential] problems” (Steven 2006) . Employee Theft Prevention Employee theft prevention is a proactive approach to deter theft perpetrators.