...“Ethics Audit Benefits.” Please respond to the following: Compare (1) the benefits associated with conducting an ethics audit against (2) the challenges of measuring nonfinancial performance and the risks inherent in ethics auditing. Ethics audit is a systematic evaluation of an organization’s ethics program to determine if it is effective or not. Effectiveness of programs and polices can be improved and organization can identify potential risks and liabilities and can improve its compliance with the law (Ferrell, Fraedrich & Ferrell, 2011, pg.243-245). The ethics audit, like the financial audit, should be conducted regularly rather than in response to problems involving or questions about a firm’s priorities and conduct. The process of auditing and reporting a firm’s ethics programs is no guarantee that it will avoid challenges related its efforts. In addition, because this type of auditing is relatively new, there are few common standards to judge disclosure and effectiveness or to make comparisons. The auditing process can also demonstrate the positive impact of ethical conduct and social responsibility initiatives on the firm’s bottom line, convincing managers and other primary stakeholders of the value of adopting more ethical and socially responsible business practices. Determine if it would ever be better not to conduct an ethics audit. Explain your rationale. Ethics audits help know the ethical goals and standards that need to be achieved. These...
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...1. Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike. For several years Nike has been the world's leading manufacturer and distributor in athletic footwear and sports' accessories. It primarily operates in Asia Pacific, Middle East, Africa, America and Europe. By having a strong brand allows expansion in the market and extended loyal consumer satisfaction. The brand came across hard times in the forms of social allegations that included several cases of human rights abuse and labor violations (Ferrell, Ferrell, and Fraedrich, 2011). These days Nike continues to improve its products. The swoosh sign that Nike uses on its products is recognizable anywhere throughout the world. Nike has faced numerous ethical issues in the past and present day. Nike has been accused of labor and human rights violations. It is said Nike wants to cut cost and find cheap labor to manufacture its products. Nike’s manufacturing plant in Pakistan was documented in a Life Magazine as hiring children to sew soccer balls. Globally, due to legal, ethical and social challenges, Nike face a great number of challenges. Nike has been blamed for producing its good in the third world sweatshops. Due to the availability of the cheap labor in the third world countries, Nike chooses to locate the majority of their production in such countries. Some of the human rights ethical and legal issues faced by the...
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...Ethics Case 1-8 – The Auditors’ Responsibility Within accounting, the auditor has a very important responsibility. According to Spiceland, Sepe and Tomassini, auditors serve as an independent intermediary to ensure that those in management properly apply GAAP appropriately (2013). When performing an audit, there is a distinct possibility that the auditor’s ethics may be challenged. It may be that the auditor will be tempted to overlook a couple of items in favor of the company they are performing the audit for or risking their career by falsifying documents to support work they did not accomplish. According to Landes, auditors need to have enough independence to call the shots as they see them and not lose sight of their commitment to do so (2004). In order for auditors to keep their commitments and to rise above the temptations that exist in auditing, I believe it is vital for auditors to apply biblical principles to their auditing methods. Biblical Application In my own experience working in crusade ministries with the Billy Graham Evangelistic Association (BGEA), we recently completed an external, third party audit of the finances for a crusade in the Philippines. Unlike other countries, the Philippines are very lax when it comes to source documents. Even for large purchases a hand-written receipt is usually accepted. Since it is rather easy to forge a source document in the Philippines, I believe the temptation exists where an auditor can fill in the gaps where...
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...Warnings • Use facts and numbers where possible. This is specifically aimed at the benefits portion of the case study. Potential readers will be compelled with the numbers and how they are affected by them and remain interested. • Use photos if necessary. If photos are used, be sure they are professionally done so as to not sully the quality of the case study. • Have an executive sign off on your case study when complete, if possible. It increases the credibility of your case study. • Format your paper in an easy to read format like using bold for headings, double spacing, and justifying the alignment. Remember to review your grammar. OR. Instructions 3 Introduce the challenge in the beginning of the case study. You can introduce the challenge by simply...
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...Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, it defines which records are to be stored and for how long (www.searchcio.techtarget.com). The legislation not only affects the financial side of corporations, it also affects the IT departments whose job it is to store a corporation's electronic records. The Sarbanes-Oxley Act states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." The consequences for non-compliance are fines, imprisonment, or both. IT departments are increasingly faced with the challenge of creating and maintaining a corporate records archive in a cost-effective fashion that satisfies the requirements put forth by the legislation (www.searchcio.techtarget.com). The intent of the Sarbanes-Oxley Act was to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes. The Sarbanes-Oxley Act created new standards for corporate accountability as well as new penalties for acts of wrongdoing. It changes how corporate boards and executives must interact with each other and with corporate auditors. It removes the defense of "I wasn't aware of financial issues" from CEOs and CFOs, holding them accountable for the accuracy of financial statements...
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...organisations has created the need for a specialist in various business controls: the internal auditor. We can understand better the nature of internal auditing today if we know something about the changing conditions in the past and the different needs these changes created. What is the earliest form of internal auditing and how did it come into existence? How has internal auditing responded to changing needs? As the operations of an organisation become more voluminous and complex, it is no longer practicable for the owner or top manager to have enough contact with all operations to satisfactorily review the effectiveness of performance. These responsibilities need to be delegated. The Development of the Profession of Internal Auditing Internal auditing has evolved from accounting-oriented to a management-oriented profession. At one time, internal auditing functioned as a junior to the independent accounting profession, and attesting to the accuracy of financial matters was the profession's main concern. Now internal auditing has established itself with a far broader focus. Modern internal auditing provides services that include the examination and appraisal of controls, performance, risk and governance throughout public and private entities. Financial matters represent only one aspect of the purview of internal auditing. Requirement to have Internal Audit Activity In January 2004, the US Securities and Exchange Commission (SEC) had approved new rules proposed...
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...Business Ethics: Past and Future.Journal of Business Ethics. 6, pg201-211 3. Desponded et al. (1989). Organisational Culture and Marketing: Defining the Research Agenda. The Journal of Marketing. 53, pg3-4. 4. Fogarty, T.J. 1996, "The imagery and reality of peer review in the U.S.: Insights from institutional theory", Accounting, Organizations and Society, vol. 21, no. 2, pp. 243-267 5. Goodpaster, K. (1991). Business Ethics and Stakeholder Analysis. Business Ethics Quarterly, pg. 54-69. 6. Hilary, G. & Lennox, C. 2005, "The credibility of self-regulation: Evidence from the accounting profession's peer review program", Journal of Accounting and Economics, vol. 40, no. 1, pp. 211-229. 7. Jarnagin, C. ;Slocum, J. W. (2007). Creating corporate cultures through mythopoetic leadership. Organizational Dynamics. 36 (3), 288-302. 8. Kavanagh, M. H. ;Ashkanasy, N. M.. (2006). The impact of leadership and change management strategy on organizational culture and individual acceptance of change during a merger. British Journal of Management. 17 (1), S81-S103. 9. Kend, M. & A, H.K. 2013, "The CLERP 9 audit reforms: benefits and costs through the eyes of regulators, standard setters and Audit service suppliers", Abacus, vol. 49, no. 2, pp. 139-160. 10. Linnenluecke, M. K. ;Griffiths, A. . (2010). Corporate sustainability and organizational culture. Journal of World Business. 45 (4), 357-366. 11. Pittman, J. & Lennox, C. 2010, "Auditing the auditors:...
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...WorldCom history The history of WorldCom Company dates back in 1983 which started as a partnership between a former basketball coach Bernard Ebbers. This company was established at Mississippi as a coffee shop, which later developed to long distance Telephone Company. The company’s name initially was Long Distance Discount Service whose operations began on 1984. After several years in operation, the company became public in August 1989 with Bernard Ebbers as the company’s CEO (Moberg 4). Over the years, the company developed through mergers and acquisitions and becomes public in the year 1989. The notable merge which enabled the company to go public was the merger with the advantage companies Inc. This led to changing of the name from just LDDS to LDDS WorldCom in 1995 and to just WorldCom a year later (Moberg 4). In 1993, the company acquires long distance providers in the name of Resurgence Communications Group and Metromedia communications. This made history as the fourth largest long distance communication firm in United States. There were also several other mergers and acquisitions such as with IDB in 1994, WilTel in 1995, MFS communications in 1996, and the greatest merger which involved MCI communications. In 1998, WorldCom completed the merger with MCI at a cost estimated to be $40 billion. This was viewed as the greatest merger after brooks fiber properties and CompuServe which were valued at $ 1.2 and $ 1.3 billion respectively (Moberg 6). Another notable aspect...
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...Sarbanes-Oxley Act of 2002 - SOX The finance industry was not always regulated. Prior to the great stock market crash in October of 1929, there was no regulation. After this crash, Congress held hearings to determine the problems and suggest solutions. This resulted in the Securities Act of 1933. The Security Exchange Commission (SEC) was created as a result of the Securities Act of 1933 and the Securities Exchange Act of 1934. The intent of this Commission was to restore confidence to investors by requiring honest reporting, and requiring companies and people who work in the industry to put investors’ interests first. After the fall of several publicly traded companies in 2001, it was clear that the SEC alone was not enough. For this reason and through the guidance of U.S. Senator Paul Sarbanes and U.S. Representative Michael Oxley, Congress passed the Sarbanes-Oxley Act in July 2002 (U.S. Securities and Exchange Commission, 2013). The mission of Sarbanes-Oxley Act of 2002 is stated in Public Law 107-204 (2002), “To protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes” (p. 1). To determine if the mission of SOX is successful the following will be discussed; the main advantages and disadvantages associated with SOX, the affects SOX has on public company Chief Operating Executive’s (CEO’s) and Chief Financial Executive’s (CFO’s), the impact SOX has on outside independent audit firms...
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...CODE OF ETHICS Compliance is the responsibility of all the Company’s directors, officers, managers, and employees.(Capital One,2011). One is responsible for learning the details of the policies, procedures, laws and regulations applicable to one's job and for seeking guidance when needed. It is important to avoid misconduct that violates the law, this Code, or Company policies, but also the appearance of impropriety. The point, which a subject is not explicitly explained in this Code, does not relieve an employee of their responsibility to maintain the highest ethical standards under all circumstances. If one has any concern about whether their actions or inactions could violate a law, it should be discussed with their manager. While no Code of Ethics can or should replace thoughtful behavior or common sense, it can help cultivate a culture that values and rewards honesty, integrity, and accountability. (Avon, n.d.). The principles detailed in the Code will guide in “doing the right thing” and in preserving the Company’s reputation for acting with integrity at all times. TRADE REGULATION Most states have enacted trade regulation laws to ensure fair competition. These laws prohibit price-fixing and other "anti-competitive agreements, deceptive acts, and unfair competitive methods." (Pension Consulting, n.d.). Some forms of joint activities are legally permissible, but others are not. Under no circumstances, should you illegally or improperly...
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...Cambodia ACCOUNTING AND AUDITING May 15, 2007 Contents Executive Summary Preface Abbreviations and Acronyms I. Introduction II. Institutional Framework III. Accounting Standards as Designed and as Practiced IV. Auditing Standards as Designed and as Practiced V. Perception of the Quality of Financial Reporting VI. Policy Recommendations EXECUTIVE SUMMARY This report provides an assessment of accounting and auditing practices within the corporate sector in Cambodia with reference to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and the International Standards on Auditing (ISA) issued by the International Federation of Accountants (IFAC). This assessment is positioned within the broader context of the Cambodia’s institutional framework and capacity needed to ensure the quality of corporate financial reporting Cambodia is putting in place an institutional framework with regard to accounting, auditing, and financial reporting practices. However, institutional weaknesses in regulation, compliance, and enforcement of standards and rules still exist. The accounting and auditing statutory framework suffers from inconsistencies among different laws. Although the national accounting standards and auditing standards are based on IFRS, and ISA, respectively, they appear outmoded and have gaps in comparison with the international equivalents. There are varying compliance gaps in both accounting and auditing practices. These gaps...
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...make to justify a corporate culture where ethics are ignored? In recent years, greed, fraud, and a lack of ethical conduct have led to the collapse of many organizations. A variety of internal and external pressures can lead companies down the wrong path. And once the first misstep is taken, it’s a slippery slope to hurting stakeholders, the community, and your reputation. This turmoil and damage could have been avoided if organizations had chosen to maintain an ethical corporate environment, exercising integrity-rich behavior and ensuring the tone at the top was above reproach. This issue of Tone at the Top presents suggestions for creating and promoting an ethical corporate climate and the role internal auditors can play in helping ensure the environment supports ethical decisions and behavior. Code of Ethics It’s important to note that internal auditors adhere to their own Code of Ethics, which is included in The IIA’s International Professional Practices Framework (IPPF). The Code of Ethics mandates that internal auditors behave and practice with: n Integrity. n Objectivity. n Confidentiality. n Competency. It also delineates rules of conduct under each of the principles. A code of ethics is necessary and appropriate for the profession of internal auditing, founded as it is on the trust placed in its objective assurance about governance, risk management, and control. Ethical Values According to the Institute for Global Ethics (IGE), five ethical values exist in any...
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...apart of our amazing team. We have some of the brightest stars in the business and we are so excited you have chosen to thrive with us. Here at Premium Barber Shop we are not only dedicated to our customers but also our employees. We aim to provide our employees with a positive, progressive, and energetic environment. At Premium Barber Shop we believe that if our employees are well taken care of and happy, then they will do the same for our customers. In order to maintain the highest level in the business we must follow some guidelines and procedures set by Premium Barber Shop. Please take some time to review our ethics program as this will be information you will use on a shift here at Premium Barber Shop. Our standards and procedures code of ethics: The principles of the Premium Barber Shop code of ethics are expressed in a general manner as a guide to ethical decision making. First appearance: at Premium Barber Shop we always come to work in our proper uniform (Premium Barber Shop shirt and jeans) and be ready to work. Your jeans can not have any rips, and shirt should come to the end of your wrist in length. We will arrive to work professional and clean. Second respect: We will always maintain the maximum level of respect to customers and co-worker. Third trustworthiness: We must always be honest, reliable, and maintain a “make the best decision” mind set. Fourth responsibility: We will always keep in mind ...
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...NIKE From Sweatshops to Leadership HRM 522 June 12, 2011 Global businesses can sometimes be difficult due to the different cultures. Not all cultures carry the same value, law and ethical standard. Nike is an international brand that has many retail accounts in over 160 countries. Being an international company can cause business ethical and legal issues. Integrity is important and sometimes a challenge when a corporation must respond to criticism or hold back on certain company details. Nike dealt with criticism from right activist, media, and face labor rights violations. However, over a period of time and after making some important adjustments; Nike is working on improving its company image. Nike used traditional advertising methods to broadcast its product. Nike public relations tactics dealt with the wage policy, visiting campuses on universities, personal letters, corporate responsibility and using celebrities as spoke person for its product. Nike launch campaigns regarding child labor, low and non- existent wages. Nike believes that the U.S dollars were meaningless because the cost of living was different in other countries. Nike held press conferences for newspaper staff at colleges. These were ways for Nike to make proactive efforts to address the concerns of activists protesting against their products. Nike made a few mistakes in handling the negative publicity. Three...
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...Islamic business ethics: responsible halal business Muatasim Ismaeel UniKL Business School, University of Kuala Lumpur (UniKL), Kuala Lumpur, Malaysia, and 1090 Katharina Blaim Faculty of Business and Economics, University of Eichstaett/Ingolstadt, Ingolstadt, Germany Abstract Purpose – The purpose of this paper is to explore the opportunities of using halal regulation and certification as a mechanism for applying Islamic business ethics in contemporary world. Design/methodology/approach – The current practices of halal regulation and certification and literature on Islamic ethics were reviewed, to identify a practical approach for Islamic business ethics. Findings – Islam allows and accepts different levels of ethical commitment. A multi-level Islamic ethics framework and a multi-level halal certification approach are proposed to facilitate the implementation of Islamic business ethics in a relative context. Two major developments can enrich halal business practices: harmonization of global standards and governance structure, and integrating responsibility and ethical issues in halal standards. Practical implications – The proposed framework and developments can enrich halal regulation and certification practice. Originality/value – The paper emphasizes the importance of flexibility and adaptability in Islamic business ethics implementation, and proposes a new framework and approach to apply Islamic business ethics. Keywords Islam, Business ethics, Social responsibility...
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