Effect of Unethical Behavior Article Analysis

Effect of Unethical Behavior Article Analysis In like a shots solid ground, wrong practices and work out ar quite common. in that respect are umteen situations known of wrong practices in the method of accounting world such as Enron, WorldCom, and plain the mortgage crisis our landed country is currently working to get out of. With all of these instances of wrong channel and accounting practices happening, the question is what is driving these companies to do this. in that respect are many realizable answers out on that point and this condition points brings up a very good possible reason, aspiration. many an(prenominal) companies in highly competitive industries are apt(predicate) to condescend the rules to keep their customers, (Williams, 2012). Businesses are constantly competing with each former(a) to touch new business, grow existing business, and ultimately augment their profits. unfortunately too many companies feel that in put to require this happen they need to cut some corners, alone they are non thinking of the long term personal effects that this fire have on their company and their customers. Just because a business might increase its customer base does not blotto that it has increased its profits. So, in order to lure in to a greater extent than investors companies may play with the poem in their books to show a better profit margin.

This helps them to look more profitable and to even look better than their competitors. This condition suggests that competition puts pressure on businesses and with that pressure may hail the push to exercise unethical practices. Executive! s are being oblige to focus on short-term results which faecal matter cause them to recede focus on the long-run effects that unethical practices can have. An excessive focus on short-term results because of intense competition is a factor in some executives willingness to engage in unethical practices, (Williams, 2012). In 2002 the Sarbanes-Oxley spot (SOX) was created to make accounting in corporate business more transparent. The Securities and Exchange Commission (SEC) enforces the rules...If you emergency to get a panoptic essay, order it on our website: OrderCustomPaper.com

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