Effect of Unethical Behavior Article Analysis Essay Example
Effect of Unethical Behavior Article Analysis
ACC291
Effect of Unethical Behavior Article Analysis
Ethics has long been a word that has several different meanings to different people. With most it means what “should” be done in various situations. It does not necessarily mean that it is illegal not to do what it considered ethical. Throughout history people have tried to justify the things they have done to make it seem as they had the best interest of those around them at heart. Unethical behavior can be exhibited in many areas of our lives such as in our communities, churches, and especially in our businesses in the accounting office.
Life is an ever pressuring force that sometimes will contribute to unethical behaviors in the accounting field. Sometimes those that exhibit unethical behavior in accounting will do so in an effort to keep their jobs. They may feel that it they don’t conform and get the numbers that their supervisor wants they can be replaced. Others may do it for personal gain; it is possible that they will get kickbacks if the company does well. This can be done if they overstate the value of the company’s assets and/or underreport the liabilities. This behavior can make a company look more profitable than it really is and can cause millions of people to invest and ultimately lose their investments based on a fudged report.
In the accounting field there are many unethical practices that can lead to hardship in the life of many. Many of these practices were brought out of the shadow when Enron Corporation, an energy company headquartered in Houston, Texas, was caught practicing unethical accounting practices. There were rumors that they practiced bribery, insider trading, overstating revenue, understating expenses and a whole lot of other unethical accounting behaviors. What they were doing was unethical but perfectly legal, until the Sarbanes-Oxley Act was enacted. The federal government came up with this act in an effort to protect and
ACC291
Effect of Unethical Behavior Article Analysis
Ethics has long been a word that has several different meanings to different people. With most it means what “should” be done in various situations. It does not necessarily mean that it is illegal not to do what it considered ethical. Throughout history people have tried to justify the things they have done to make it seem as they had the best interest of those around them at heart. Unethical behavior can be exhibited in many areas of our lives such as in our communities, churches, and especially in our businesses in the accounting office.
Life is an ever pressuring force that sometimes will contribute to unethical behaviors in the accounting field. Sometimes those that exhibit unethical behavior in accounting will do so in an effort to keep their jobs. They may feel that it they don’t conform and get the numbers that their supervisor wants they can be replaced. Others may do it for personal gain; it is possible that they will get kickbacks if the company does well. This can be done if they overstate the value of the company’s assets and/or underreport the liabilities. This behavior can make a company look more profitable than it really is and can cause millions of people to invest and ultimately lose their investments based on a fudged report.
In the accounting field there are many unethical practices that can lead to hardship in the life of many. Many of these practices were brought out of the shadow when Enron Corporation, an energy company headquartered in Houston, Texas, was caught practicing unethical accounting practices. There were rumors that they practiced bribery, insider trading, overstating revenue, understating expenses and a whole lot of other unethical accounting behaviors. What they were doing was unethical but perfectly legal, until the Sarbanes-Oxley Act was enacted. The federal government came up with this act in an effort to protect and