...accounting policies and principle-based accounting policies. While rules- based accounting policies are strict and follow an order, principle-based accounting policies tend to give more freedom for accountants to have the ability to customize policies that will suit the industry they are working in. The research will explore the advantages and disadvantages of both policies and try to apply the policies to real world scenarios. In the end the research will conclude as to what policy is the most suitable, trying to find a balance between the two types in order for accountants to have an easier and more efficient way of recordkeeping, as well as finding a balance in order to provide assurance and accurate recordkeeping for the business, for the investors and anyone else involved in the business. | Introduction In the wake of the US corporate scandals, such as Enron and Lehman Brothers, the integrity of accounting standards were under review. Shareholders’ confidence in financial statements and public accounting firms was shaken, due to the fact that the United States had always used rules-based accounting standards to provide a greater amount of detail and compliance to the Securities Exchange Commission (SEC). Rules-based accounting standards are governed by the Financial Accounting Standards Board (FASB) which primarily uses a GAAP accounting versus the International Accounting Standard Board (IASB) that uses IFRS principle-based accounting. Although both boards use rules as a foundation...
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...characteristics distinguishes moral standards from other sorts of standards? a. moral standards are purely optional b. moral standards take priority over other standards, including self-interest c. moral standards cannot be justified by reasons d. moral standards must be set or validated by some authoritative body 2. Choose the statement that gives the most accurate description of etiquette: a. the rules of etiquette are a fundamental branch of morality b. conformity with the rules of etiquette is sufficient for moral conduct c. etiquette refers to a special code of social behavior or courtesy d. the rules of etiquette are backed by statutory law 3. Our relationship with the law is best described by which of the following? a. To a significant extent, law codifies a society’s customs, norms, and moral values. b. The law is a completely adequate guide to the moral standards that we should follow. c. The law makes all immoral conduct illegal. d. Violating the law is always immoral. 4. Which of the following is not one of the four basic kinds of law? a. statutes b. constitutional law c. common law d. contractual law 5. A proper perspective of religion and morality is a. only religion can tell us what is right and wrong b. it’s not true that morality must be based on religion c. religion never influences people’s moral beliefs d. without religion, people wouldn’t have a reason to act morally 6. When religion and morality are considered, a. the moral instructions...
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...meeting U.S. environmental standards, or a cost cutting technology meeting local and less stringent standards yet allowing for contributions to other community needs surrounding the projected plant. “Although many people at AES felt that the company would be “selling out” if it did not maintain its strict commitment to the environment in the narrow senses, others felt that AES should expand its concerns to include people and their quality of life” (AES Global Values, 2000). This presents a major ethical dilemma of whether or not the company should continue its traditional focus on meeting “social responsibility” values through CO2-offset programs as the company expands worldwide. Summarize the various issues regarding AES’s commitment to social responsibility There are many issues regarding AES’s commitment to social responsibility, a core part of AES’s culture is the commitment to their shared principles or “corporate values.” These principles describe how the individuals at AES endeavor to commit themselves to the Company’s mission of serving the world by providing “safe, clean, reliable and inexpensive energy.” The first and largest issue of AES’s commitment to social responsibility is that team members “felt that accepting a lower environmental standard in India - even one consistent with local and World Bank requirements - would be abandoning everything AES stood for.” The second issue is that AES, as a global company, should “maintain uniform standards worldwide” in order to...
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...are a set of moral principle or value. Ethics assist individuals to make moral decisions when faced with any kind of situation. In business, ethics assist individuals in applying ethical considerations when making any decisions. Ethics regarding the carrying on of business have been described as principles and standards of behavior that are expected of individuals in business. There are various philosophical approaches to decision making in business. One of the most popular philosophical approach to ethics in business is the consequentialist approach. According to this school of thought, a decision ought to be analyzed to ensure that the benefits of making that particular decision outweigh the possible harm that can be occasioned by that decision. According to this theory, the only variables under considerations are the cost benefits involved as well as the level of harm that is likely to be caused by a particular decision. The deontological school on the other hand addresses issues which are related to duties, rights and considerations of justice using standards that are rooted on morality. There are various problems associated with this philosophical school of thought since it advocated for a strict observance of ethical behavior. One of the major problems is the conflict between the ethical duties owed to various classes of person versus a fiduciary duty which may be a legal requirement of professionals to their fiduciaries. Virtue ethics on its part looks on the moral appeal...
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...LWC1 - Fundamentals of Business Law and Ethics Course of Study Your competence will be assessed as you complete the LWC1 objective assessment for this course of study. This course of study may take up to 10 weeks to complete. Introduction Overview There are the two major subdomains of study within the Fundamentals of Business Law and Ethics Course of Study: business law and business ethics. The exam covers 11 business law and ethics concepts, including the following: contractual relationship government regulation of business dispute resolution labor and employment law hiring and employment practices warranties, negligence, and liabilities Sarbanes-Oxley Act ethical issues in business ethical leadership ethics programs use of company resources You likely have had some experience with the legal system, either through your own encounters or merely through listening to the nightly news, and you have probably read or heard about various ethical and legal issues causing financial upheaval in today's business world. This background will serve you well in this study. Now you can expand on that experience, and perhaps refine and enhance your own views on these issues. Once you complete this course of study, you will have demonstrated a level of competence that you can immediately use in your work setting and career. Outcomes and Evaluation There are 10 competencies covered by this course of study; they are listed in the "Competencies for Fundamentals of Business Law and Ethics...
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...International Accounting Member of Group : 1. Rahmawati Yulistya C1I015026 2. Muhamad Ilham Akbar C1I015012 3. Astria Wulan P C1I015013 4. Siffa Sandi Sasmita C1I015025 5. Cita Husna Raisya C1I015026 6. Wulan Nilam Sari C1I015031 7. Karina Aprilia W C1I015037 8. Riyan Ardiyana C1I015043 Jenderal Soedirman University Faculty of Economics and Business I. Introduction I. Background Ethics Behavior and Social Responsibility Ethical behavior is that which is morally accepted as “good” and “right”. And opposed to “bad” and “wrong”. Social responsibility is a moral principle of an entity, be it an organization or individual, to act towards betterment of society at large. It is a duty that every firm and individual should perform so as to maintain the balance between the environment and economy. Their actions should lead towards sustainable development so as to safeguard the interests of the coming generations and at the same time fulfilling the needs of present population. The responsibility can be active, by performing activities that directly advance social goals, or passive, by avoiding any engagement in socially harmful act. Organizations can manage ethics in their workplaces by establishing an ethics management program. Brian Schrag, Executive Secretary of the Association for Practical and Professional Ethics, clarifies. “Typically, ethics programs convey corporate values, often using codes and policies to guide decisions...
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...understand that “ethics in business” is a field which aims at explaining problems of moral aspect which come up currently in the activity of economic agents from a market economy. Considering the cultural variety of moral values and principles lengthwise and crosswise the planet and, since the adopted policies led to many unacceptable effects, the idea of drawing up international ethic codes appeared more and more substantial through the explicit agreement of some governmental and non-governmental associations in which the big transnational corporations have the main role. The company system in Japan is so strict that it is quite hard, sometimes even impossible for a company to do business with another company with which it does not have personal, tight and previously established relations. The Japanese philosophy is that only the company in which the human relations are good will succeed in while the one with bad human relations will go bankrupt. In order to understand a Japanese company and to be able to cooperate with it, it is really useful for one to see it as an exclusive club, a cooperating union and a business enterprise because it incorporates features of these three aspects. To put it in a nutshell, it is all about the great ambition and diligence of the Japanese, which are well-know around the world and also the basis of ethics in business in Japan. Still, what it is not exactly known is why the Japanese are so keen upon success: it is a mixture of historical factors...
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...FUNDAMENTALS OF BUSINESS LAW & ETHICS INTRODUCTION TO CONTRACTS What is the definition of a contract? a promise that the law will enforce 4 Parts of a Contract Agreement: one party must make a valid offer, and the other party must accept it. Consideration: there has to be bargaining that leads to an exchange between the parties. Legality: the contract must be for a lawful purpose. Capacity: the parties must be adults of sound mind. Describe the various types of contracts. bilateral: BOTH parties make a promise. This is the most common and is used for services, sale of goods and almost anything else. A promise for a promise... unilateral: ONE party makes a promise the the other party can accept only by doing something. This is a less common contract. express: In an express contract the two parties explicitly state all important terms of their agreement. This is the majority of contracts. implied: In an implied contract, the words and conduct of the parties indicate the intended agreement. This is less common. executory: one or more parties has not fulfilled obligations executed: all parties have fulfilled their obligations valid: satisfies all of the law's requirements unenforceable agreement: the parties intend to form a valid bargain but a court declares that some rule of law prevents enforcing it voidable: the law permits one party to terminate the agreement void agreement: neither party can enforce, usually because the purpose of the deal is illegal or...
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...managers in order to win contracts. The way of bribe used is by the managers will bring the money in their suitcases with confident that they are doing “business as usual”. Case Chronology Started in 1970s until 2007, Siemens has being alleged for a series of scandal include accusation of bribery given to government officials in numerous countries around the world. The actions included one of the former executive of Siemens was accused for handling $77 million in bribes while another situation is they bribing the labour union. However, in the end, Siemens was found guilty and being fined for $800 million by U.S authorities under Foreign Corrupt Practices Act. Response to the scandal, the customers of Siemens were delay their order, Nokia Corporation postponed their planned to make joint venture with Siemens, Siemens profit started declined, top executives were forced to resign and...
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...technological field, with its new innovations of various electronics, along with its ability to make other competitors want to follow in their shoes. With over 408 retail stores in 14 different countries, a company this large is forced to have certain morals and social responsibilities in order to make sure they are functioning as a whole and achieving that one common goal specified by the corporation (Forbes.com). Apple’s ethics recently though have came into question, through the attacks that they are facing regarding work within Chinese factories to produce their products and the child labor laws that they are breaking to make that one iPhone or MacBook. Though, one might argue that Apple has a stronger bond and promise with its consumers because they are the ones providing the profit rather than those that they employ within the manufacturing Countries of their products like China. I believe though that treating each person with respect and acting ethical has its advantages in the long run even if that iPhone they are making might be made in six hours instead of four. In addition, the government has began to crack down on social responsibilities of corporations, helping with societies overall perception of large corporations, such as Apple, promoting the idea that there is more to business than just making a profit and being at the top of your industry. The ethical issues at hand that I will be investigating at Apple are the attacks that they are facing in their factories...
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...Ford Pinto: A Study of Ethics In the 1960s Ford Motor Company, under pressure from stakeholders and the pressures involved in competing with the foreign vehicle market set out to manufacture a vehicle that was smaller, lighter and less expensive than the competition’s product. This vehicle was designed and moved into production within 2 years, much quicker than the 3 ½ year company norm and is still the shortest vehicle production planning schedule in history. The result: The Ford Pinto. While the Pinto was in the design phase it was decided that the fuel tank would be placed under the rear fender instead of over the rear axel to allow for more trunk room in the car. This design however, was quite flawed. The Pinto being smaller than the other American made cars was not built using the same frame design; a design that was manufactured to prevent the fuel tank from exploding upon a rear impact collision. Upon testing a serious defect was found with the placement of the fuel tank. It was determined that if the Pinto was involved in a rear end collision the fuel tank may rupture and burst into flames causing serious injury or death to the passengers. Team A will be examining the ethical dilemmas involved in the case and the solutions that we would recommend today and the solutions that would have been ethically appropriate in 1971. Lee Iacocca was the president of Ford Motor Company in 1971 and was the directive authority behind the creation of the Ford Pinto. He wanted a...
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...environmental regulations, conflicts of interests, General Policy and Procedures, and moral obligation of the multinational organization. Introduction Businesses are faced with very real ethical dilemmas where the appropriate course of action is not really clear. Some of these are the ethical obligations of a multinational corporation toward their employment conditions, human rights, environmental pollution .Understanding the nature of ethical problems and deciding what actions to pursue when confronted with .Ethical problems frequently occur in International Business. Basic human rights are not accepted in international business, which include freedom of speech, freedom of assembly, freedom of movement, freedom of political repression and so on. In international corruption is so widespread in some countries that politicians and bureaucrats regard it as a benefit of office and openly as break laws against corruption. Corruption is seen and treated as illegal, and when discovered, violators are punished by the full extent of the law. In some countries their property rights have always been violated by public officials, such as politicians and government members extracting income, resources or their properties from them. The concept of social responsibility refers to the idea that business people should consider the social consequences of economic activities when making business decisions and there should be both respectable social...
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...ADMS 3660 MIDTERM NOTES Chapter 1 and Parable of the Sandhu Case * Watched video on Disney and how they treat employees, work is a performance etc. * Ethics is the study of morality * Morality refers to the standards that an individual or group has about what is right/wrong, good/evil. * Business Ethics concentrates on moral standards as they apply to business policies, institutions, and behaviour * Corporate Social Responsibility refers specifically to a description and moral evaluation of the impact than an organization has on society * Ethics can be a business constraint “ethics costs” but also an advantage “ethics pays” 1970 – 1985: Rise of business ethics (academia) 1985 – 1995: Ethics into firms 1995 – 2000: Internationalization 2000 – 2012: Corporate Scandals and government regulation * Ethics Scandal Costs: Fines, lawsuits, prison, investor losses, bankruptcies, unemployment, and increased regulation * Market Morality: Will everyone invest their money as agreed or will greed effect them? * Parable of the Sandhu Ethics vs. the law Unclear over moral responsibility Easier to say what is morally right than to do it * Employees value health and safety ethics Consumers value product safety Shareholders want return on investment Need to look at environment * Macroenvironment: social, economic, political, technological factors * Our society is pluralistic in nature * Pluralism: there is diffusion of...
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...impacts on business. One important driver if change is the amount of information the world generates is increasing, also the amount of knowledge the world generates in increasing. This increases is being generated is creating a major headache for business, and the companies don’t know how to act and solve the questions through the huge amount of information. All organization at one time or another face substantive modifications to some aspects of their business. Supervisors can prepare themselves to adapt by following a variety of tips, such a –becoming aware of situation. –understanding change –improving skills and knowledge etc. b)Technology is another driver of increased complexity. Firms had adapt to a radical new technology. If they set long term strategy before, now companies are finding flexible approach to their business. Companies need to constantly review and adapt their strategy and ensure that they build an organization that is able and willing to change continuously. At the same time, new technology makes our life easier , particular in business. Business owners can use technology to reduce business costs. Business technology helps automate back office functions, such as record keeping, accounting and payroll. Business owners can also use technology to create secure environments. Technology can help businesses improve their communication processes. Emails, texting, websites and personal digital products applications, known as “apps," can help companies improve communication...
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...Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free "Fluor Corporation (Fluor Corp.) was listed in the world’s 'Most Ethical Companies' by Ethisp here magazine in 2008. It was the only company that made it to the list from the construction sector for two consecutive years. Alan Boeckmann (Boeckmann), chairman and CEO of Fluor Corp. Corporation acknowledging the achievement said, "Ethics and ethical behavior are core values at Fluor Corp. and have been since our inception more than a century ago. We are proud of the examples our employees set around the globe and we are honored to be recognized on this prestigious list."1 Fluor Corp., with offices in 25 countries across the globe, provides services in the fields of engineering, construction, procurement and maintenance to its clients in the fields of oil and gas, chemicals, pharmaceuticals, alternative energy, nuclear infrastructure and government projects. Fluor Corp.'s ethical compliance initiatives, many argue, create a virtuous cycle in eroding corruption practices. However, the bigger debate is, would everyone buy Fluor Corp.'s philosophy? Why is it doing what it's doing? Corruption, Business Corruption: The Insatiable Motivations Corruption is defined as the misuse of entrusted power for private gain2 and as Boeckmann aptly said, "As you know, corruption has been with us for centuries. If not the oldest human vice, it is a close second. My belief, however, is that corruption...
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