Saturday, October 12, 2013

Effect of Unethical Behavior Article Analysis

Effect of Unethical Behavior Article Analysis In like a shots earthly concern, wrong practices and port ar quite common. in that respect are many a(prenominal) situations known of wrong practices in the method of accounting world such as Enron, WorldCom, and plain the mortgage crisis our landed body politic is currently working to get out of. With all of these instances of unethical channel and accounting practices happening, the question is what is driving these companies to do this. in that respect are many achievable answers out at that place and this condition points brings up a very good possible reason, competition. many an(prenominal) companies in highly competitive industries are in all probability to condescend the rules to keep their customers, (Williams, 2012). Businesses are constantly competing with each other(a) to touch new business, grow existing business, and ultimately improver their profits. unfortunately too many companies feel that in roll to require this happen they need to cut some corners, unless they are non thinking of the long term make 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.
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This helps them to visit more profitable and to even look better than their competitors. This hold suggests that competition puts pressure on businesses and with that pressure may ob tain the push to exercise unethical practice! s. Executives are being force to focus on short-term results which pot cause them to set down 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 destiny to get a panoptic essay, order it on our website: OrderCustomPaper.com

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