Description
Book SynopsisBusinesses and the accounting profession have never been under such close ethical scrutiny because of the ethics scandals that have prevented organizations and people from reaching their objectives. Understanding why ethical behavior is so important to success and knowing potential pitfalls are key to your own success. Business & Professional Ethics for Directors, Executives & Accountants, 9e demonstrates that it's not just about learning rules. You must learn how to use ethical strategies, make ethical decisions, and integrate the latest information on ethics and governance scandals, legal liability and professional accounting and auditing issues. You must understand why developing an ethical corporate culture is essential to maintaining stakeholder support, and for auditors to audit financial statements. To keep learning interesting and underscore the importance of ethical issues, this edition provides more than 130 cases, including classic frauds, bankruptcies, loss of reputation, and unprofessional practices. Cases provide excellent opportunities for role playing and for developing your understanding of soft skills, including communications, persuasion, presentation, leadership and a global mindset.
Table of ContentsCHAPTER 1 ETHICS EXPECTATIONS The Ethics Environment for Business: The Battle for Credibility, Reputation & Competitive Advantage New Expectations for Business Responses & Developments The Ethics Environment for Professional Accountants Managing Ethics Risks & Opportunities Questions Reading Insights References Case Insights ETHICS CASES involving (number of cases): Improper Behavior (5) Advertising & Sales promotion (4) Financial Transactions (2) Control of Information (2) Concerning the Environment (3) Product Safety (5) Accounting & Auditing (2) CHAPTER 2 ETHICS & GOVERNANCE SCANDALS Ethics & Governance: A Timeline of Important Events Ethics & Governance: The Early Developments Prior to 1970 Ethics & Governance: 1970���1990 Ethics & Governance: The Modern Era���1990 to the Present Significant Ethics & Governance Scandals & Events Signs of Ethical Collapse Ethics & Governance: Trends Ethics & Governance: Timetables of Important Events, 1929���2019 New sections: Unethical Bank Cultures Produce Scandals #MeToo Movement Reaches a Tipping Point Harmful Products Draw Huge Settlements and Change Perspectives Accounting Crises lead to Re-imagination of Professional Accountant���s Role U.S. Business Roundtable Statement Signals Acceptance of Stakeholder Interests Useful Video & Films Questions References Case Insights ETHICS CASES: Enron, Arthur Andersen, Worldcom LIBOR Manipulations, Deutsche Bank���s Cultural Disaster Bernie Madoff Scandal Wal-Mart Bribery, GM Ignition Faults, VW Cheats on Emissions Tests General Motors installed faulty ignition switches Takata air bags explode injuring passengers with metal shrapnel Volkswagen software defeats environmental exhaust emissions testing Valeant Pharmaceuticals and Turing Pharmaceuticals bought drugs and jumped prices CHAPTER 3 ETHICAL BEHAVIOR���PHILOSOPHERS��� CONTRIBUTIONS 127 Ethics & Moral Codes Ethics & Business Self-Interest & Economics Ethics, Business & The Law Major Ethical Theories Useful in Resolving Ethical Dilemmas Moral Imagination Questions Case Insights Useful Video & Film References ETHICS CASES about improper behavior (7) John DeLorean���s Overcommitment to His Company Google���s Tax Minimization Strategy: Utilitarian Consequences New York Times Dual Class Share Structure: Distributive Injustice? Ben and Jerry���s Application of the Rawlsian Difference Principle Merck and River Blindness: Justice as Fairness Beach-Nut Nutrition Corporation and Blind Corporate Loyalty Johnson & Johnson���s Worldwide Recall of Tylenol: Virtue Ethics CHAPTER 4 PRACTICAL ETHICAL DECISION MAKING Introduction Motivating Developments for Ethical Learning Ethical Decision Making Framework (EDM)���An Overview Philosophical Approaches���An Overview: Consequentialism (Utilitarianism), Deontology, & Virtue Ethics Sniff Tests & Common Heuristics���Preliminary Tests of Ethicality Stakeholder Impact Analysis���Comprehensive Tool for Assessing Decisions & Actions Stakeholder Impact Analysis: Modified Traditional Decision-Making Approaches Integrating Philosophical & Stakeholder Impact Analysis Approaches Other Ethics Decision-Making Issues A Comprehensive Ethical Decision-Making Framework Conclusion Questions References Illustrative Applications & Case Insights ILLUSTRATIVE APPLICATIONS (4) ETHICS CASES About: Harm to individuals (4) Harm to the environment (1) Governance decisions (3) CHAPTER 5 CORPORATE ETHICAL GOVERNANCE & ACCOUNTABILITY Modern Governance & Accountability Framework���To Shareholders & Other Stakeholders New Expectations���New Framework to Restore Credibility Corporate Governance Overview Accountability to Shareholders or Stakeholders? The Shareholder Value Myth Governance for Broad Stakeholder Accountability Guidance Mechanisms���Ethical Culture & Code of Conduct Threats to Good Governance & Accountability Misunderstanding Objectives & Fiduciary Duty Failure to Identify & Manage Ethics Risks Conflicts of Interest Key Elements of Corporate Governance & Accountability Compelling Evidence for the Development of an Ethical Corporate Culture Developing, Implementing, & Managing an Ethical Corporate Culture Corporate Codes of Conduct Ethical Leadership Corporate Psychopaths Director & Officer Liability Public Accountability Benchmarks Conclusion���Toward a Culture of Integrity Questions Case Insights Reading Insights References ETHICS CASES on: Ethical Corporate Culture (4) Ethical Leadership (3) Bribery (4) Corporate Governance & Managerial Opportunism (5) Fraudulent & Questionable Financial Reporting (7) Stock Market (7) Product Safety (2) APPENDIX A: Alternative Governance Theories Sears Compensation Plan Backfires Wells Fargo Suffers from an Unethical Culture Johnson & Johnson Credo Spying Scandal at Credit Suisse: Ethical Leadership? CHAPTER 6 PROFESSIONAL ACCOUNTING IN THE PUBLIC INTEREST Purpose of the Chapter Professional Accounting���s Traditional Role Historic Shortfalls in Meeting Professional Expectations Professional Accounting and the Public Interest Implications for Services Offered Judgment & Values Sources of Ethical Guidance Professional Codes of Conduct Conceptual Framework for Assessing Threats to Compliance Conflicts of Interest: Threats to Independence Assessment using the Conceptual Framework Approach A Stakeholder Impact Analysis Affecting Services Offered Involving Improper Use of Influence Involving Use or Misuse of Information (Confidentiality) Questionable Tax Services & Practices Laws & Jurisprudence Moral Courage Is Vital to Professional Accounting: Globalization Heightens the Requirement When Codes & Laws Don���t Help Broadening Role for Professional Accountants Conclusion Questions Reading Insights Case Insights References ETHICS CASES: Famous events and scandals (5) Professional & Fiduciary Duty (13) Accounting & Auditing Dilemmas (11) Fundamental Accounting & Auditing Issues Cases (3) Tax & Regulatory Cases (7) Transfer Pricing by Apple The Business Reality Test for Transfer Pricing Tax Inversions: Deal or No Deal CHAPTER 7 MANAGING ETHICS RISKS & OPPORTUNITIES Ethics Risks & Opportunities: Identification & Assessment Management & Mitigation Stakeholder Accountability Key Ethics Risk Issues & Tools; Workplace Ethics New Section: Freedom from Sexual Harassment (#MeToo Movement) Whistleblower Programs & Ethics Inquiry Services Fraud & White Collar Crime New Section on Forensic Accounting Bribery & International Operations New Section on Money Laundering Crisis Management Conclusion Questions Case Insights Reading Insights References ETHICS CASES about: CSR Cases���Environmental Issues (3) Workplace Ethics Cases Discrimination & Abuse (6) Spying (2) White Collar Crime (3) Bribery & International Operations Cases (10) Risk & Crisis Management Cases (7) APPENDIX A: Ethics Audit Program Annual Audit Questions Bribery by Lockheed Corporation Spawns the U.S. FCPA Niko Resources ��� Canada���s First Significant Bribery Prosecution Daimlerchrysler Subject to Bribery U.S. Laws CHAPTER 8 SUBPRIME LENDING FIASCO���ETHICS ISSUES The Economic Train Wreck���A Global Disaster Stages of the Subprime Lending Fiasco How Did the Subprime Lending Crisis Happen? Ethics Issues���The Subprime Lending Fiasco Ethics Lessons Questions Case Insights Useful Videos & Films References ETHICS CASES about: Questionable ethical values (1) Conflicts of interest (4) Accounting manipulation (2) Morale courage (1) A Subprime Mortgage-Backed Security Gone Awry Investment Bankers in the Movies How Much Were the Investment Bankers Paid during the Crisis?
