BUSI 4008 Lecture Notes - Lecture 10: Earnings Management, Income Statement, Financial Statement
26 Feb 2018
School
Department
Course
Professor
Document Summary
Loyalty faithfulness to o(cid:374)e"s allegiances: courage the strength to stand firm in the face of difficulty or pressure. Virtues: virtues are typically reflected in both professional and corporate codes of conduct, virtues provide their own intrinsic rewards, virtues fill the gap and provide guidance to what is the right thing to do. They are an element of personnel or cultural control: virtues could impede ethical behavior. Common management control-related ethical issues (4: creating budget slack, managing earnings, responding to flawed control indicators, using controls that are (cid:862)too good(cid:863) Employees who create slack: exploit superior knowledge about business possibilities. Early stage: org becomes an extension of the founder or the top management group, top management sets the ethical tone and are usually able to monitor employees" compliance with that tone. Later stage: typically action accountability type controls are used, ethical standards are communicated through corporate policies and procedures manuals, corporate codes of conduct, or less formal sets of memoranda.
