The Role Of Ethics In Business

It is a well-known fact that During the financial scandals of the early 2000s, stockholders, creditors and another(prenominal) investors lost billions of dollars (Warren, Reeve & Duchac 2011); as numerous companies were caught in operation(p) their businesses with un h adeptst and double-tongued story and business practices. Ethical invoice practices in businesses be paramount to providing accurate, legal and thus effectual reports about the economic activities and condition of a business. These facts support my patch that laws argon needed to ensure that h cardinalst accounting practices are upheld in all businesses of today and the future. As noted and outline by Warren, & Reeve, & Duchac, (2011) in their table empower Accounting and Business Fraud, the authors list various companies and how the ethical violations during the early 2000s led to fines, firings, lawsuits and in a a few(prenominal) of the more prominent cases, as detailed by the authors; Ame rican International Groups (AIG), whose accountants used sham accounting transactions to distend their performance, Enron, whose accountants deceitfully inflated its financial results, which lead to over 60 billion in stock market losses and HealthSouth whose accountants magnify their performance by 4 billion in meretricious entries, lead to criminal prosecution and convictions.

(p4) Although not all of the companies that were caught during this ten of creative accounting were criminally prosecuted for their actions; Terex, who recorded profit prematurely and inflated their profits, were only fined. They ended up paying 8 million to the SEC (Securities and Exchange Commission) i n settlement. These companies did have one t! hing in common, all of these businesses engaged in malign accounting practices. This was the binding thread to all of the companies violations. It was with these abundant fraudulent accounting activities being exploited by so numerous an(prenominal) major American companies that congress was impelled to rewrite the laws to...If you catch to get a full essay, order it on our website: OrderEssay.net

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