...Effect of Unethical Behavior Analysis Unethical behavior is an action that does not follow the approved standards in someone social or professional behavior, and business practices. This mainly includes the ability to take advantage of another without them having knowledge or giving consent. Unethical behavior or unethical practices is a form of manipulation on something or someone without their knowledge or permission. Unfortunately unethical behavior is very common in the social world but even more common in the business or professional setting. When it comes to a business or organization people find it hard to believe that unethical behavior is being committed, especially in an organization that is well known in the community. There are several reasons that can encourage unethical accounting practices or behavior in organizations, but the most common reason would most likely be money. Accountants are paid professionals that work for an organization or is hired outside the business to perform services such as: audit and assurance, consulting, deals, financial advising, tax accounting services, and so much more. These services are imperative for an organization to maintain good business accounting and good strategic planning of the business finances. Since individuals in the accounting profession have such a considerable amount of responsibility to companies and to the public, there has to be a level of confidence in the knowledge and the behavior of accountants. However...
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... 2 The medical field is one that unethical research happens. The way it happens is when doctors or hospitals publish findings in some area but they do not research other results for the same test. In the article titled “The highly profitable but unethical business of publishing medical research”, it discusses how to make money in the medical field companies do not complete research and just publish information without the complete facts that accompany it. The reason publishing medical information without the complete research is unethical is because it can cause great damage to the consumer reading the report. It is also a problem because it means that the researchers in charge of looking up the right information are not doing their job. A better way to understand it is by know what unethical behavior is. According to smallbusiness.com, “Unethical behavior in business runs the gamut, from simple victimless crimes to huge travesties that can hurt large numbers of people. Whether it is stealing a pen, padding an expense report, lying to avoid a penalty or emitting toxic fumes into the air, unethical behavior cannot be condoned by a company. A strict ethics policy is the cornerstone for any business that wants to maintain a good reputation” (). In the article there are several issues presented. The first one is the lack of information, that is the primary unethical behavior involved in the case. The reason it is unethical is because in the medical field the medicines...
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...Effects of Unethical Behavior Article Analysis ACC/291 Principles of Accounting II (AXIA) November 12, 2012 Effects of Unethical Behavior Article Analysis The impact of unethical accounting behavior can be devastating, often leading a company to closure or bankruptcy. Some examples of internal unethical accounting practices include under and overstatement of expenses, revenue, liabilities, and corporate assets, misuse of capital (possibly for personal gain), etc. Examples of external unethical practices would include fraud regarding trade and investment, bribery, and kickbacks, and manipulation of financial market regulations. Enron Corporation is one of several companies who have committed unethical and illegal accounting actions. Enron started in the 1990s in Houston, Texas. This American company concentrated on the energy sector. In the highlights of Enron’s success, it has about 21,000 employees and considered the leading supplier of electricity, natural gas, communication, and paper. Enron’s perceived success was a mask for the cast schemed fraud called the “Enron Scandal” (Kadlee et. al. 2002). Enron Corporation not only committed financial fraud but also may have been brining people for contracts on South America. Later, this accumulated, and reports started to appear regarding the fishy accounting structure of Enron and its partner in crime, Arthur Anderson (accounting firm). Consequently, Enron resulted in bankruptcy. This bankruptcy would be the world’s...
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...Running head: IMPACT OF UNETHICAL BEHAVIOR ARTICLE ANALYSIS Impact of Unethical Behavior Article Analysis Donna Sutton University of Phoenix Financial Accounting II ACCT 363 VERN May 09, 2010 Impact of Unethical Behavior Article Analysis The impact of the financial crisis created by such companies as Enron gave a reason for Congress to address some of the unethical practices of accountants. The American public no longer trusted accountants after losing retirements and life savings after making investments in companies that were reporting false financial statements. President George Bush signed the Sarbanes-Oxley Act into law in 2002 to try to avert any future dealings of an unethical nature (Dummies.com) The Sarbanes Oxley Act states that companies must enact internal controls to counteract fraud, deceit and wrong doing by its auditors, CEO’s, financial personnel, and accountants when reporting the financial statements for their companies. CEO’s can no longer say they were unaware of deceitful financial statements. They will be held responsible for the company’s financials and also be penalized. This act will prevent companies from reporting inaccurate financial statements to the public and allow Americans to make informed investment decisions from accurate financial statements. Confidentiality is a huge concern for clients of companies. This issue was addressed in Ruling 112. A client is now given the choice of sharing their information with other companies...
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...Impact of Unethical Behavior Several key concepts of ethics in accounting and financial decision-making are trust, confidentiality, collaboration, and a code of ethics. Trust and confidentiality go hand-in-hand in business accounting because trust is essential if a company wants loyal customers. Confidentiality is also an integral aspect of financial dealings because privacy is often a concern for many companies and customers. Collaboration is another area of financial decision-making that is relevant because ethical practices promote collaboration. A code of ethics is necessary in accounting and financial decision-making because it provides guidelines and standards for employees on all levels. The Sarbanes-Oxley Act of 2002 was passed in response to the financial scandals such as Enron and WorldCom, and it inevitably had a strong impact on accounting and financial decision making. This law required publicly traded companies to be much more accountable for their finances. The Sarbanes-Oxley Act set new regulations and penalties for public companies to provide investors with security. This act also caused the creation of the Public Company Accounting Oversight Board, or PCAOB, which is in charge of overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. This new law impacted accounting and financial decision making, because it required companies to be responsible for their financial decisions. It also regulated the...
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...Unethical Behavior ACC/291 Unethical Behavior Unethical accounting practices in business can take place for many varied reasons. The leading factor according to a study conducted for the American Management Association (AMA),is “pressure from management or a Board of Directors to meet unrealistic business objectives or deadlines” (Accountingweb, 2006). If the person preparing the financial documents for a company feels their job may be in danger if certain goals are not met they may alter the documents to reflect the desired numbers. The individual preparing the statements may also feel that the appearance of success may reflect well on them personally, thus advancing their standing in the eyes of the Board of Directors. Another reason someone may behave unethically is simple greed. Stealing money that may be seen as insignificant can be a temptation to some. The idea that stealing from a corporation is somehow different than stealing from an individual may be another rationale some people use to convince themselves that the behavior is somehow less unethical. Greed may also come into play if the person preparing the documents is the owner of the company. They may want to make their company appear more desirable to potential investors, thus making their company worth more money. The reason for unethical behavior may also stem from what on the surface...
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...Effect of Unethical Behavior Denek Waller ACC/291 – Principles of Accounting II July 25, 2012 Malcolm Mumford Companies prepare the statement of cash flows differently from the three other basic financial statements. First, it is not prepared from an adjusted trial balance. It requires detailed information concerning the changes in account balances that occurred between two periods. An adjusted trial balance will not provide the necessary data. Second, the statement of cash flows deals with cash receipts and payments. As a result, the company must adjust the effects of the use of accrual accounting to determine cash flows. The information to prepare this statement usually comes from three sources: • Comparative balance sheets, indicates the amount of the changes in assets, liabilities, and stockholders’ equities from the beginning to the end of the period. • Current income statement, helps determine the amount of cash provided or used by operations during the period. • Additional information, includes transaction data needed to determine how cash was provided or used during the period. (Kimmel, P.D. Weygand, J.J. & Kieso, D.E., 2009) A company must convert net income from an accrual basis to a cash basis. The indirect method adjusts net income for items that do not affect cash. Companies favor the indirect method for two reasons: (1) It is easier and less costly to prepare, and (2) it focuses on the differences between net income and net cash flow...
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...contribute to the commission of unethical behavior is greed, money, power, respect and prestige. It takes years to build up your reputation when you enter the business world. There are many people who will have doubt that you can do the work or that your company may not last as long as you would for it to, there are many pressures that come along with this type of entrepreneurship. In the beginning a person is usually humble and excited about building a foundation they can call their own, but after a while when the money starts coming in good and you begin to meet people who have a high prestige, people begin to lose sight of why they started their business or joined a business and get lost in the world of corruption, politics and scandals. There have been a few people that have been high profile professional business men that have gotten involved with using unethical behavior. The Enron scandal has become a big part of history along with fanniemae and Tyco. All of these men had the same thing in common and that was stealing money from the company they were apart of to achieve personal fulfillment, trips and living the good life due to other peoples hard earned money. Many lives were ruined and devastated by their selfish acts, jobs were lost, and people lost their pensions and a lot of investors lost big on their investments (www.fed-soc.org). I do believe that America as a whole is predisposed by both ethical and unethical behavior depending on the situation...
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...Phase 3 DB Illegal and unethical practices in our business world are something that goes far beyond anything that is reported in the news. We need to be holding the people who are in positions of power and influence to a much higher level of accountability for the unethical actions they perform. The United States is looked upon as a leader in the world, or at least we used to be. We as a nation trust the people that we elect to be acting with the highest level of integrity and ethics that we know. But of course this doesn’t just go for our elected officials, but for individuals who are looked up to by millions, such as our sports athletes, or our entertainers, alike singers. When I say the name Brett Favre, what do you think? Powerful? Incredible Athlete? Devoted Team Member? Honorable, Faithful Husband? Maybe all of the above? I have always been a huge fan of the NFL and continue to be a loyal fan of the Patriots and the Packers. Brett Favre has proven to be a leader among any of the teams in the NFL, leading the Packers to eight division championships (1995, 1996, 1997, 2002, 2003, 2004, 2007, 2009), five NFC Championship Games (1995, 1996, 1997, 2007, 2009), and two Super Bowl appearances (Super Bowl XXXI, Super Bowl XXXII), winning one (Super Bowl XXXI). Favre is the only quarterback in NFL history to throw for over 70,000 yards, over 500 touchdowns, over 300 interceptions, and over 10,000 pass attempts. (Brett Favre, N.D) WOW!! Wouldn’t we all agree that he is a phenomenal...
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...accountants is critical to society. Accountants serve as financial reporters and intermediaries in the capital markets and owe their primary obligation to the public interest. The information they provide is crucial in aiding managers, investors and others in making critical economic decisions. Accordingly, ethical improprieties by accountants can be detrimental to society, resulting in distrust by the public and disruption of efficient capital market operations Unethical behavior in the workplace can be defined as any action that does not conform with the standards of conduct established by the organization. Unethical behavior can occur in the relationships between employees, in the way an employee goes about his business or how he uses company resources. Unethical behavior can even break the law in some situations. Inappropriate Computer Use -Employees may use company computers to engage in unethical behavior. For example, an employee who is not permitted to use the Internet for personal reasons commits an unethical act by shopping online while at work. Random Internet surfing takes away from the time she spends on work-related activities....
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...Effects of Unethical Behavior ACC/291 One may describe accounting as a type of language or mechanism that provides information about the financial position of a company. The information provided in the financial statements of accounting is used by investors to determine whether or not to invest in an organization, and used by creditors to determine whether or not a loan should be granted. The mere fact that these financial statements are important and involves money opens doors for unethical practice and behavior. In the past years companies like Enron and WorldCom have been scandalize for its company’s unethical conduct in accounting. In the wake of numerous corporate scandals the Sarbanes-Oxley Act (SOX) of 2002 was created to protect investors by improving the reliability and accuracy of corporates disclosure made pursuant to the securities laws, and for other purposes. Although many companies run their business honestly, others turn out to be criminals, robbing their customers’ qualm, or dragging themselves into illegal practices slowly through good intentions or ignorance. Companies may be tempted to practice unethical behavior in accounting for different reasons such as greed, opportunity, disconnection, and ignorance. Unethical practices and behaviors also include: manipulation of financial, bribery, insider trade, misuse of funds, exaggerating the value of corporate assets, exaggerating revenue, securities fraud, purposely providing erroneous information relating...
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...Impact of Unethical Behavior Article Analysis ACC/291 Principles of Accounting II September 18, 2012 Thomas House Impact of Unethical Behavior Article Analysis Reporting financial statements within a business or company is more than a must; it is a necessity to keep ones business up and running. If one were to report false information on any kind of financial statements it then could be costly for the company or business. This is known as unethical behavior in accounting. The unethical behavior in accounting would be to mislead financial analysis for personal gain, misuse of funds, overstating revenue, overstating the value of corporate assets, or even underreporting the existence of liabilities. The purpose of the Sarbanes-Oxley act is to, “Protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.” ("Sarbanes-Oxley Essential Information", 2003-2012). The Sarbanes-Oxley act was named after senator Paul Sarbanes and Representative Michael Oxley. Sarbanes and Oxley drafted the Sarbanes-Oxley act of 2002; both wanted to make sure that any business or corporation would be held accountable for wrongdoings. Enron would be sure to be held accountable. Enron Corporation Enron Corporation was an American energy company located in Houston, Texas. Enron employed nearly 21,000 people and was one of the world’s leading electricity, natural gas, pulp and paper...
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...Effect of Unethical Behavior ACC/291 September 2, 2012 Effect of Unethical Behavior A quote from Ray Beier, a partner of PricewaterhouseCoopers, puts the idea of ethical behavior and its effect on financial statements into perspective. He states, “From the corporate scandals, we now realize that accounting was too rules-based, where it needs to be more principles-or objectives-based” (Bisoux, 2005, p. 24). Corporations had been so concerned with financial gain that the idea that there was a need for better internal controls did not exist. As long as the corporation was providing financial statements that presented the picture of a company continuing to grow and make money, it was assumed that the company ran smoothly. As a result, it was far too easy for corporations to overstate the value of assets or understate liabilities causing the true value of a corporation to be undiscovered. Some unethical behavior on an individual level, would be insider trading, kickbacks fraud and, as seen far too many times, the manipulation of the financial markets. The Enron Corporation was the perfect example of this unethical behavior and its discovery led to the implementation of Sarbanes-Oxley Act of 2002. The company used systematic and planned accounting fraud to misrepresent the corporation’s financial standing and, as a result, led to its shocking downfall. The company’s stock fell so sharply and quickly that many stockholders were caught off guard and lost millions of dollars...
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...Effect of Unethical Behavior In accounting, there are or have been situations that might lead to unethical practices and behavior. Unethical corporate behavior is caused by a variety of factors. For example, pressure from management or a Board of Directors when accountants are to meet unrealistic business objectives or deadlines is a huge factor. In addition, other factors like furthering ones career, protecting ones livelihood, working with an immoral environment, and simply the lack of consequences can cause unethical practices. It is no wonder why there have been a number of cases where it comes to reporting financial statements in a company’s stability. For example, scandals like the most recent Enron, WorldCom and Tyco disasters are just to name a few. This is why in 2002 President George W. Bush brought in a law called the Sarbanes-Oxley Act. The ultimate focus of this act was to reduce chance of accounting errors, and report enduring ethical issues. The Sarbanes-Oxley Act of 2002 also changed the state of the accounting profession. It affects certified public accountants in the way they process, execute, and operate for publically traded companies. The act permitted a committee called the PCAOB to investigate, public companies and their auditors. The SEC, for rectitude of companies, would manage this committee. In addition, the committee, five members, included two CPA’s and three other people who are not to have ever been CPA’s now or in the future. Furthermore, each...
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...Unethical Research Behavior (Name) RES/351 March 10, 2014 (Teacher Name) Abstract Unethical research behavior has shown us the social patterns we portray at any given moment. Dependent on our surroundings, are the effects of the decision we choose to make, or need in making. In this essay, I will discuss the unethical behavior of ‘the bystander effect' and ways to develop possible solutions pertaining to the article I have selected. The article I selected is ‘The Bystander Effect in Medical Care' (Stavert, MD, MBA & Lott, MD, MSHP, 2013). Unethical Research Behavior The unethical research behavior involved in this study is ‘The Bystander Effect", to be exact ‘The Bystander Effect in Medical Care'. The bystander effect is "the human tendency to be less likely to offer help in emergency situations when other people are present" (Stavert, MD, MBA & Lott, MD, MSHP, 2013). During inpatient, and outpatient care, the medical professional enrolled to care for patients makes it easier for the medical professional to take a passive role in the treatment. The neglect of clinicians and primary care providers is the direct result of missing leadership. The parties hurt in this article are the patience receiving inpatient, and outpatient care in a medical treatment facility. Patients become helpless by the lack of diagnosis from the attending physicians, clinicians, care providers, and any additional medical staff. When physicians cannot identify the cause of illness...
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