In the Enron scandal there have been many failures and the outcome to this is a practical standpoint which included a moral hazard in the company where managers where elaborating and not managing the companies risks. Take in to account the risks that had not been managed properly to certain extent in the company. Anglo-American system of corporate governance is centered as the ownership of an establishment and it is extensively circulated between the differences in shareholders than the ownership of being focused on the Sarbanes Oxley Act of 2002. Anglo-American corporate governance is a primary aim of maximizing the shareholders value, which improves the access of savers on firms to make investments opportunities. As a company Enron was seen
“The more one knows ethics, the more it is used and the more useful it becomes”-Plato, The quote by Plato is a reminder on just how important ethics is and how important it is to educate yourself on proper ethical practices. In the following paper I would like to look at the topic of global business ethics. Recent studies in business ethics have shown both remarkable similarities and differences across cultures with respect to attitudes toward questionable business practices. First I would like to talk about the affect that culture has on ethical behavior. Next, I would like to talk about ethical complexities and challenges facing businesses that operate internationally, mainly focusing in on multinational corporations and the ethical problems they face.
Nowadays the debate about the businesses’ ethical behavior through the decision making process has been increased due to the collapse of famous companies after the disclosure of financial scandals related with them. The legal responsibility has been focused on specific categories of professionals like accountants, auditors and managers as they are supposed to work in an appropriate way to avoid such circumstances. The purpose of this article is to review two academic journals which try to present situations, where managers and accountants were led to illegal behavior like defrauding financial statements, to analyze some ethical theories and explore what would have happened if they had been aware of some ethical codes. Reinstein, Moehrle and Reynolds-Moehrle (2006) argued that any illegal and unethical behavior in the financial field is caused by a general moral problem inside the human society. They used nine cases of financial collapses to present specific actions and their disastrous results for all the participants.
The public image of distrust will led customers or investors away from that company causing it stock – if a public company to drop and potential going out of business and causing workers their jobs. In closing as we look at internal controls for companies it is a way to keep them doing the right thing both moral and ethical. Managers are now held responsible for their actions and this was thanks to “The Sarbanes Oxley Act.” Everyone in that corporation from the top down must follow the correct procedures. These way investors can invest knowing internal controls are there for their protection. As long as humans are involve in internal controls, the chance of someone getting around them for their own personal gains is possible, but at lease everyone knows when these people are caught, they will pay a high penalty.
Moreover, it should be understood that moral philosophies offer standards for controlling how conflicts are settled in reference to people life’s concerns. Additionally moral philosophies influence how corporation devise business strategies and resolve specific ethical issues (Ferrell, et al., 2013, p. 153). With that said it should be noted that not one specific moral philosophy is accepted universally. This fact is proven by viewing how moral philosophies is used to are used to endorse certain economic system and the conduct of people in those systems. For the purpose of this paper... ... middle of paper ... ...., Fraedrich, J.
Business Ethics and the Role of the Corporation The problem to be investigated is the ethical role that the corporation has when balancing internal strategies with external responsibilities. Dr. Novak explains various responsibilities a business has in his article “Business Ethics and the Role of the Corporation”. This paper will first discuss why Dr. Novak has two sets of responsibilities in his article on business ethics. Next it will explain what Dr. Novak says about the rule of law and its relationship to business. Finally it will analyze what he means by moral ecology.
Ethical issues related to ownership include conflicts between manager’s duties to the owners and their own interests, also separation of ownership and control of business. Financial issue includes, for example, the accuracy of reported financial documents. Ethical issues can acquire between manages and employees, then employees are asked to carry out assignments they consider unethical. Consumers and marketing issues are related to providing safe desired products for a fear price and not harming people and an environment. Accountants also face ethical dilemma, they have to deal with competition advertising commission.
This paper’s topic is about how a person’s integrity plays into the decision to falsify information or documents in a business. Employee can experience pressure to falsify business documents; his integrity plays a part in his decision on whether he will falsify the document. The morals of a business pivot on the morals of its employees; this is why an employee’s morals are important to keeping a business alive. The basic core moral question I am discussing is when it comes to integrity is it ever ethically correct to falsify a business’s documentation. When a manager makes a decision to falsify a record or any type of business information has he corrupted his ethics.
Are businesses in corporate America making it harder for the American public to trust them with all the recent scandals going on? Corruptions are everywhere and especially in businesses, but are these legal or are they ethical problems corporate America has? Bruce Frohnen, Leo Clarke, and Jeffrey L. Seglin believe it may just be a little bit of both. Frohnen and Clarke represent their belief that the scandals in corporate America are ethical problems. On the other hand, Jeffrey L. Seglin argues that the problems in American businesses are a combination of ethical and legal problems.
Introduction The term “Marketing ethics” has been defined as how moral standards of right and fair practices are implemented into organization and strategy (Murphy et al., 2005). In fact, marketing and ethics are usually seemed as a contradiction, because the purpose of marketing is monetary-oriented. The ultimate goal for business is making profit or generating sales, while ethics is moral and societal, such as contributing to the society. Introcaso et al (1998) quotes Michael Novak’s (1998) words that business might fail in the short term if introducing ethical model in competition, because high moral standards increase costs. Consequently, numerous companies launch misleading advertising, manufacture unsafe products, exploit labour right and waste natural resource for self-interest.