What Are Ethical Accounting Failure?

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Introduction: Ethical accounting failure has continued to occur in multinational companies despite the increased legislation, enhanced corporate governance programs, and greater attention on business ethics by the academic community. (Croxford, 2010.) According to his research, Croxford believed “that accounting professional was discriminated against based on their age, culture, gender, and education”. Multinational corporations have been facing ethical failures scandal for many years. Example: One of the biggest financial scandals was the Enron Scandal. The mergers and the international development of the Big Six accounting firms have created new classes of problems for their management. There is a great need for multinational public accounting…show more content…
According to researchers, “the impact of varies cultures also reinforces the need for extensive use of expatriate management training by accounting firms”. (Cohen, Pant, and Sharp, 1993) When manager are trained properly the decision making process will improve the benefits of the company. In this paper, we will look at research related to how multinational executive compensation should incorporate more control over their corporate governance and programs, better performance of audit and quality controls, and provide management training for their mangers. The gap in the literature showed poor signs of commitment in managements as it related to business ethics. Research shows the agency theory has been the primary foundation for research in the relationship between firm performance and executive compensation. The agency theory holds executive officers of a firm tend to act in their own self-interest in conflict with the interests of the owners who seek to maximize the value of their investment. The hypotheses type that I like we’re will data was collected from varies industries using the ownership structure and instructional…show more content…
Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance. What is Corporate Governance? Corporate governance is gathering together a group of people around a board table to make good sound decisions on behalf of the company and its stakeholders. Corporate governance framework also depends on the legal, regulatory, institutional and ethical environment of the community. Corporate governance should put policies and regulations in place for multinational companies that is rewarding for the benefit of the company. Such policies can include benefit packets (retirement compensation, insurance benefits) trading policies, and employee compensations. It’s proven that if employees have reward programs or incentive to motivate them to work hard. According to researcher Thompson and Richter, “for multinational companies to remain global, multinational companies should design reward programs. Corporate governance has to come up with designer program for global employee. Through reward programs this will motivated employees to work hard for the benefit of company values and organizational structures. In contrast, corporate governance should be involved in the setting the standard of ethics for global industry. The standards should involve what is more beneficial to the global strategy. The model of the agency theory will

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