Impact of Unethical Behavior

Topics: Enron, Financial statements, Business ethics Pages: 1 (281 words) Published: November 18, 2011
: Impact of Unethical Behavior

The impact of unethical behavior is wide spread, and does unimaginable damage to people, and business alike. The results of unethical behavior on the grandest scale would be Enron, Tyco, and Global Crossing, or WorldCom. Greed led to accounting abuses, cover ups and every day people becoming whistle blowers. Manipulating financial reports is illegal and unethical because the financial records are supposed to show the core financial results of the business, and how it is growing. When accountants or executives lie about the revenue and cash flow it misleads prospective investors, stockholders, employees, and the U.S. government. Billions of dollars had been diverted, and hidden in the paperwork, and financial records of failed business ENRON had acquired. The auditors at Arthur Anderson were talked into ignoring the discrepancies; a decision they paid dearly for. If I discovered discrepancies in the financial statements where I worked I would go to those in charge and alert them of my findings. If the CEO’s did not respond to my findings I would then call the proper authorities outside of the company. As hard as it would be I am sure I could not live with myself if I sis not speak up. Unethical behavior led to the demise of Enron, and the other companies, and to financial devastation for many families all over the country. As a result of the unethical behavior of several companies we now have the Sarbanes-Oxley (SOX) came about. All companies, no matter what size the company is it must comply with the Sarbanes – Oxley act of 2002. The Sarbanes-Oxley act is supposed to set guidelines for ethical accounting practices.
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