1.
To-identify: Whether such behaviour is common at other companies or not.
2.
To-identify: Importance of “tone at the top”.
3.
To-identify: If you would just follow along the leadership or have the courage to act as a whistle-blower.
4.
To-identify: How people can justify their unethical behaviour.
5.
To-discuss: If people stop thinking about consequences of their actions on others or do they just do their job.
6.
To-discuss: Why do people follow superior’s directive despite the fact that they will gain only a little.
7.
To-discuss: Whether people weigh the potential costs of acting unethically with the potential gains or not.
8.
To-discuss: Impact of this movie on your conduct as an employee or owner.
9.
To-discuss: Why every employee and manager should know how their company make money.
10.
To-discuss: In the light of mark-to-market accounting discuss the reason for principle of conservatism.
11.
To-discuss: Employees of Enron end up losing their retirement fund.
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Managerial Accounting (5th Edition)
- Identifying ethical standards The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) are violated in each situation? You tell your brother that your company will report earnings significantly above financial analysts’ estimates. You see others take home office supplies for personal use. As an intern, you do the same thing, assuming that this is a “perk.” At a company-paid conference on e-commerce, you skip the afternoon session and go sightseeing. You failed to read the detailed specifications of a new accounting software package that you asked your company to purchase. After it is installed, you are surprised that it is incompatible with some of your company’s older accounting software. You do not provide top management with the detailed job descriptions they requested because you fear…arrow_forwardA written code of ethics for a business would be most helpful to company employees when identifying ethical and unethical situations. evaluating alternative solutions to an unethical situation. identifying stakeholders in a business decision that requires ethical decision-making. O weighing the impact of business decisions on each company department.arrow_forwardIssue: 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. Questions to be Answered: Do you feel that strong ethics makes good business sense? Why do you think that there is a positive correlation between ethical behavior and successful corporate financial performance?arrow_forward
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- Refering to case study 2 Fortunesareus Ethical Scenario. How can these below question be addressed. 1. What are the readily identifiable ethical issues for your decision? 2. Who are the key parties who can influence, or will be affected by, your decision? 3. What fundamental ethical principles for accountants are most applicable and is there an apparent conflict between them? 4. What would you do?arrow_forwardQuestion: If you were in Staci’s situation, what would you do? Ethical Dilemma Staci Sutter works as an ana-lyst for Independent Invest-mentBankShares(I2BS),which is a large investment banking organization. Shehas been evaluating an IPO that I2BS is handling for atechnology company named ProTech Incorporated.Staci is essentially finished with her analysis, and sheis ready to estimate the price for which the stockshould be offered when it is issued next week. Accord-ing to her analysis, Staci has concluded that ProTech isfinancially strong and is expected to remain financiallystrong long into the future. In fact, the figures providedby ProTech suggest that the firm’s growth will exceed30 percent during the next five years. For these rea-sons, Staci is considering assigning a value of $35 pershare to ProTech’s stock.Staci, however, has an uneasy feeling about thevalidity of the financial figures she has been evaluating.She believes the…arrow_forwardManagers 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.arrow_forward
- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage