In the concern universe. non everything will work perfect to our advantage. but one thing people in the concern universe should ever do certain to make is to be smart when doing determinations. The best manner to be smart on doing determinations is following their ain moralss as leaders. To be successful. there should non be dishonesty. greed. or haughtiness because these three factors will convey any concern to failure. However many times. leaders such as CEO’s and CFO’s are faced with hard quandaries that put them in inquiry of their ain moralss and values. such as the undermentioned instance of the CFO of venture-backed tech startup. John and CEO Ralph.
John and Ralph are faced with the quandary of whether to perpetrate fraud for the company’s ability to remain afloat. or have problem with deriving sufficient support in the 2nd unit of ammunition. which could intend travel belly-up and that will be the terminal of the company. The job taking to such a serious quandary is that the company had been making truly good. but late large clients have been puting fewer orders. giving Ralph the force per unit area to demo growing because the company is ventured-backed and the investors expect consequences. Ralph experiencing so pressured to demo growing. talked to John about entering a major order that was still under dialogue as the current one-fourth is stoping in the following few yearss ; “including this order would give a important encouragement to the company’s fiscal studies. ” But making so John knows they will be perpetrating fraud for the endurance of the company. as the paper states “the Sarbanes Oxley Act requires the CEO and CFO to subscribe off on all quarterly studies. ” This quandary puts John in trial of his ethical criterions. John is accountable to execute ethical concern pattern and SHOULD NOT enter the major order before the trade goes through. He should state CEO Ralph that he can non execute fraud because it is against his moralss and ethical motives every bit good as endangering his repute. and the company’s repute every bit good. Making this act can salvage the company but it can besides lose the company.
John and Ralph are leaders of the company and should ever follow Ethical behaviour because making so they are moving in a manner that is good and reciprocally good for themselves and society in all. Even though they are afraid to travel insolvents. it is better to be honest and by being honest they are besides following the jurisprudence. It’s an illegal instance. and they should both believe of the negative effects it would convey them if they sign it. By traveling against the jurisprudence. they will non merely lose the company but besides their ain freedom stoping up in gaol. similar to the Enron instance.
The Enron instance has influenced my reply because it should learn people in the concern universe what being unethical causes and why no 1 should perpetrate fraud because the truth ever comes out. I myself am non in favour of perpetrating fraud. and from my ethical motives. and life regulations. I will ne’er perpetrate it even if it will do me a millionaire over dark. Many people that commit fraud the first clip and don’t get caught will maintain executing it over and over once more doing it their wont. until one twenty-four hours they get caught merely like the instance in the film The Wolf of Wall Street. specially when it involves a batch of money. and forgets the effects they will be faced subsequently when they get caught. They become irresponsible and bury the consequence they are doing on others.
Ralph is being so irresponsible and selfish by stating John to book the order. The Enron docudrama should learn every spectator that if one is traveling to perpetrate fraud. it should non impact others. Ralph should cognize better that if John was to lie in his finance records and execute Ralph’s actions. non merely John but besides the company. as a whole will endure effects similar to the 1s faced by Enron and its executives. Just like the Enron instance where the CEO and the CFO both go to gaol and the corporation went insolvents would be the consequence of John and Ralph’s action of fraud.
Following the Enron instance. if I were to construction a company to avoid state of affairss such as the one described in the conjectural and others that have been discussed in category would be to advance better corporate civilization in the company by giving seminars. conveying celebrated talkers that have been through unethical state of affairss and have learned from their errors. have organizational in the company from the top leaders to make the right thing and be great function theoretical accounts to all employees. and AVOID personal issues that will make incorrect to the company. Biased board of managers and have a great Human Resources plan. I would make a systemic where if things are traveling incorrect happen the ethical solution to repair it without interrupting the jurisprudence. be ready and fix everyone else for any alterations around the company. put up a plan to look into everyone’s motions because as we all know. prophesying moralss and excepting unethical employees is non really effectual action so by commanding everyone’s motions will hold me in control of everything that goes around the company doing certain no 1 is perpetrating fraud and besides doing it really clear to all employees that illegal actions are non tolerated of all time in the company and will hold serious effects.
And eventually. the steps I would implement in a company to advance ethical behavior would be Check and Balance. Use two different accounting houses to do certain the company is acquiring the same records in both and that there’s non fraud committed. Besides change the hearers every 3 to 4 old ages to do certain they won’t commit fraud on the long tally. I would besides hold every employee address the 6 inquiries of my company when doing determinations ; 1. How would the determination make me experience about myself? 2. The Aureate Rule. 3. What would others believe of you? 4. Is the action illegal? 5. Who is affected? To what widen? How? 6. Could the determination go a wont organizing? These inquiries are really of import because the replies will give them the right determination to do and they should cognize better to non do the company any illegal quandary. As the leader of the company I will besides ne’er give up on prophesying moralss no affair if its effectual or non because it will do it clear that honestness is really of import if you are working for me. I will besides demo instances like Enron. and have seminars to acquire my point across and learn my employees the right moralss to be successful.