ssue: In the post-Enron environment, and with the enactment of the Sarbanes-Oxley legislation, many firms are proactively portraying themselves as being “ethical.” Ethical behavior is, for example, part of the Corporate Social Responsibility movement. This behavior includes many dimensions, from the ethical treatment of employees and the environment, to ethical financial reporting. Academic research has found a positive correlation between a firm’s reputation and its financial performance.

ssue: In the post-Enron environment, and with the enactment of the Sarbanes-Oxley legislation, many firms are proactively portraying themselves as being “ethical.” Ethical behavior is, for example, part of the Corporate Social Responsibility movement. This behavior includes many dimensions, from the ethical treatment of employees and the environment, to ethical financial reporting. Academic research has found a positive correlation between a firm’s reputation and its financial performance.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter4: Ethical Responsibilities Of Accountants

Section4.3: Suzette Washington, Accounting Major

Problem 3Q

See similar textbooks

Similar questions

Managers of corporations need to act in an ethical manner O because ethical behavior is its own justification. O because a business must be trusted by investors, customer and the public if it is to succeed. O because business managers must answer to a higher authority. O because ethics violations will be punished by the law.
An individual's ethics is influenced by many factors. As a result, everyone's ethical reasoning differs. Companies and organizations create internal rules or codes of conducts to ensure consistent ethical behavior throughout the organization. The code of conduct outlines the expected employee behavior and potential consequences when violated. For accounting firms, the internal code of conduct is based on the expected professional conduct outlined by the American Institute of Certified Public Accountants (AICPA) Professional Code of Conduct. You decide to open an accounting firm that specializes in clients with global operations. Many accounting firms have created their professional code of conduct. Through research, locate at least 3 published codes of conduct. Then, write your firm's professional code of conduct that includes the following: How professionals in your organization approach culture and diversity issues Expectation for ethical behavior and procedures that should be…
What are the ethical issues that Dunlap's management team mat have created by adopting a short run focus on financial performance for Sunbeam? What lessons could be learned from the outcome?
As future professional accountants, what is your role in promoting and achieving sustainability and to sustainability reporting while describing the importance of corporate governance and board of directors' function. In relation What will you do if you face an ethical dilemma, and must compromise your values?
Companies have the moral obligation to conduct ethical operations. There are many cases where companies have different outcomes in their operations because of their interpretation of what ethics is. How can accounting ethics affect accounting operations and applications?
“The relationship between corporate social responsibility and corporate financial performance concluded that there was a positive causal relationship between the two.” Discuss. If this is true, provide two (2) reasons why might unethical behaviours exist in so many business organizations?
As a Professional Accountant, you are regarded as an expert with specialized knowledge acting ethically and influencing others to do what is right whilst working to very high standards. When confronted with an ethical challenge or dilemma in a corporate setting, Lynne Paine suggests two approaches to the management of ethical issues in organizations - the compliance based approach and the integrity based approach. Required: Compare and contrast the compliance hased approach and the integrity based approach in the management of ethical issues.
What is the best strategy to improve U.S. business ethics? Multiple Choice Ethics must be taught in every business school around the globe. Congress must pass an ethics bill. Company leaders should adopt and support a corporate code of ethics. A company's suppliers must be thoroughly Investigated for ethical violations.
Why do you think studies show that no single factor has a bigger impact on the ethicality of a firm’s culture than the personal examples set by firm leaders?
11. What we the qualities of a CRO? 12. What are the qualities of a CFO? 13. What are the qualities of the CDO? 14. What are the roles and responsibilities of the CGO? 15. What is the significance of quality finarcial statements and Other financial reporting information? 16. What factors can lead to a company engaging in corporate misconduct of misrepresenting their financial position? 17. Explain the terms of the phrase "organizational ethical culture-) 18 What are the steps required to make an ethical deasoon7 19 What are situational ethics? 20 What are the principles of business ethics and conduct?
All of the following conditions are likely to make ESG issues financially material (relevant) to a firm, except: O when it becomes easier for management and stakeholders ot gain insight into a company's environmental or socal impact. when the media and NGOS have more power and politicians are more responsive to ESG issues. when companies have the ability to effectively self-regulate O when a company develops a differentiated service or product that replaces a "dirty" or unsustainable way of doing business.
1. Do you think that financial managers should be held to a higher standard of ethical behavior? 2. In the video on ethics and my article from the Conway Daily Sun, there were several examples of unethical behavior, Please discuss a real life example of unethical behavior either from your personal experience or from the news. What do you think can be done to change the unethical behavior, or do you think it can't be stopped?