This website uses cookies to ensure you have the best experience. Learn more

Legality And Ethicality Of Corporate Governance

974 words - 4 pages

Legality and Ethicality of Corporate Governance Paper

Legality and Ethicality of Corporate Governance Paper
United Thermostatic Controls is a publicly owned company that manufactures and markets residential and commercial thermostats (Mintz & Morris, 2011). As a publicly owned company, United Thermostatic Controls common stock is listed and traded on the New York Stock Exchange. Frank Campbell is the director of the Southern sales division. Because of regional economics getting worse, the pressure to achieve sales revenue targets has created stressful and possibly unethical situations. Mr. Campbell feeling the pressure that he would not meet budgeted revenues for the ...view middle of the document...

It is imperative that the information on the financial statements is accurate. The Sarbanes-Oxley (SOX) Act of 2002 was a law that was passed because of a few unethical companies who decided that they could skew the information to have the financial statements reports what they wanted but not what was the truth. It was apparent to the auditors that what they found was a situation that needed further investigation. The information already coming to light did not follow suit with the essence of what the SOX Act was established for. The Statement of Auditing Standards requires the internal audit staff has responsibilities to the company in which they work for. The auditors went to Tony Cupertino. Mr. Cupertino is the director of the internal auditing department as well as a licensed Certified Public Accountant (CPA), and also holds the certified internal auditor (CIA) designator. Mr. Cupertino approached Mr. Campbell regarding the transactions and was told that upper management would support the actions of Mr. Campbell because of the pressure to exceed budgeted revenue as to not affect the stock prices.
The ethicality issues of this case are simple. The transactions were done during the fourth quarter but at the cost of not doing proper business with the customers. The customers did not receive their product how they requested it (full shipment of product versus partial), and delivery not when they wanted the product. The customer’s wishes were ignored to make the financial statements reveal what they wanted to make the company look better than what it was actually doing. The other ethical issue is the Mr. Cupertino would like to take his concerns further to Walter Hayward, who is the chief financial officer, who is also a member of the board of directors, or to take his concerns to the audit committee. Mr. Cupertino understands that the majority of the members of the board, including those on the audit committee, have ties to the company and members of top...

Other Papers Like Legality and Ethicality of Corporate Governance

The Literature of Corporate Governance Principles 2

3738 words - 15 pages investments. Although this event has started the change in the Cypriots’ view of the Corporate Governance Principles, many companies don’t take the principles seriously, and the full benefits of these principles are not received. Problem Statement: Corporate Governance is a set of rules a company should follow and is the key to the reliability of corporations, financial institutions and markets, maintains the stability of the economies. (OECD

Risks Of Noncompliance In Corporate Governance

3160 words - 13 pages Running head: RISKS OF NONCOMPLIANCE IN CORPORATE GOVERNANCE PAGE \* MERGEFORMAT 1 RISKS OF NONCOMPLIANCE PAGE \* MERGEFORMAT 13 Risks of Noncompliance in Corporate GovernanceMMPBL/570Risks of Noncompliance in Corporate GovernanceIntroductionCorporations such as Enron, WorldCom, and Tyco forced Congress to enact the Sarbanes-Oxley Act (SOX) because of mismanagement and fraud. This new law requires financial reporting and disclosure within

Corporate Governance In Banks Undergoing Merger And Acquisition

2449 words - 10 pages PAGE PAGE 10 AbstractThis nine page paper on Corporate Governance In Banks Undergoing Merger And Acquisition presents a case on banks that have recently undergone the process of M&A in Pakistan and the steps these banks should take in order to encompass corporate governance to ensure higher profitability and employees' satisfaction. Effective corporate governance involves a set of relationships between a company's management, its board

Discuss How Observance of Good Corporate Governance and Avoidance of Corrupt Practices in an Institution Can Contribute to an Effective Organization

2049 words - 9 pages and avoidance of corrupt practices in an institution can contribute to an effective organization. INTRODUCTION Corporate governance is a topic that has received growing attention in the public in recent years as policy makers and others become more aware of the contribution good corporate governance makes to financial market stability and economic growth. Corporate governance is all about controlling your business and so is relevant, and


2499 words - 10 pages future. It is evident from the current market situation that, companies that offer more transparency and strict auditing are running with much more profitability as they have confidence of the stakeholders and also the market. Aim and Objectives This study wants firstly to elaborate in a way that how internal auditors perceive their current role in introducing and managing corporate governance within the Universities of United Arab Emirates

The Function and Governance of Imf Lending Policies in Malawi

1537 words - 7 pages The Function and Governance of IMF Lending Policies in Malawi The International Monetary Fund was established at the United Nations Conference held in Bretton Woods, New Hampshire, United States in July, 1994. The IMF's goal is to build a framework of cooperation between nations into hasten up post-war reconstruction, to aid political stability, and to encourage peace (Lele 154). The IMF membership is at 188 countries. According to the

An Analysis of the Relationship Between Corporate Social Performance and Corporate Reputation

1140 words - 5 pages 8 7.0 Data Analysis and Presentation 8 8.0 Chapter Headings 9 9.0 Time Schedules 10 INTERIM REPORT: 1. Working Title An analysis of the relationship between corporate social performance and corporate reputation. The case of Tesco and its child education policies. 2. Background information: I chose to research in this area as I am interested in the PR area of business and the importance of

A Legal and Ethical Examination of Corporate Tax Shelters

3369 words - 14 pages ethicality of tax shelters, this paper will introduce a variety of corporate tax shelters, discuss corporate tax shelters in relation to tax avoidance and tax evasion, explore the impact of corporate tax shelters on stakeholders, and examine the affect corporate social responsibility has on tax liability. A Legal and Ethical Examination of Corporate Tax Shelters As each business embarks on a pursuit for profit, companies often find

The State of Our World : Capitalism and Corporate Extreme

528 words - 3 pages The state of our world today The world is coming apart at the seams. Socialists, Fascists, Communists and Religionists are fighting a different war every day. The battle has gotten over but the war will always continue in a never ending vicious cycle. But the most vicious and dangerous form of people which are threatening to take over and make the world kneel down for their own greedy agendas are the corporate slaves. These slaves are so

Leadership, the Determinant of Corporate Culture and Diversity

2211 words - 9 pages , 2010). Once upon a time, Vice President Mark, a former executive of iPhone, has left the company over the report that he did not fit into Apple’s corporate culture, because Jobs created one of the most distinct corporate cultures in the business. They are: focus on design; believe in Jobs; forget everything that came before it; and believe Apple is better than all others. Many people point out that IBM did much better in bringing in an

Explain the Characteristics of the Different Types of Schools in Relation to Educational Stage(S) and School Governance

990 words - 4 pages Academies There are different types of academies in operation in England. An academy school is a state funded school in England which is directly funded by central government, and independent of direct control by the local authority. Academies are self-governing and are established as non-profit charitable trusts. Academies may receive support, financially or in kind, from personal or corporate sponsors. They are exempt from following the

Related Essays

Legality And Ethicality Of Corporate Governance

1091 words - 5 pages Legality and Ethicality of Corporate Governance This paper will discuss the legality and ethicality of United Thermostatic Control’s (“United”) corporate governance. Given the fact that United is a publicly owned company, the role that the Sarbanes-Oxley Act of 2002 (“SOX”) played in this case will be examined. The discussion will cover various regulations such as the AICPA Code of Conduct, GAAP, and the ethicality of the activities that

Individual Legality And Ethical Of Corporate Governance

1247 words - 5 pages Week 3: Individual Legality and Ethicality of Corporate Governance Alisha J. Simental March 6, 2014 Katherine Parks Introduction In Case 3-3, we are introduced to the United Thermostatic Controls," that engages in the manufacturing and marketing of residential and commercial thermostats."(S. Mintz, R. Morris, 2011) They use their thermostats control temps in refrigerators and furnaces, mainly selling to retailers. According to the text

Corporate Governance Evaluation And Rating Essay

1614 words - 7 pages Corporate Governance Evaluation and Rating Nowadays it is not unusual for an investor to reflect governance matters while deciding about investment determinations. As a result, numerous corporations are in the business of rating corporate governance procedures of public companies. Some corporations offer credit ratings in addition to governance ratings. As far back as the 70’s organizations have dealt with business ethics in a host of different

Customer Relationship And Corporate Governance In Sustainability Of Business

2666 words - 11 pages Customer Relationship and Corporate Governance in Sustainability of Business Vinod Krishna U. Makkimane Sr.Faculty Institute of Business Management & Technology Banashankari 3rd Stage, Bengaluru. Sustainability is a dynamic concept born out of the environmental debate of the last quarter century. There is growing concern nationally and internationally about biodiversity and protection of plants and animals and community based activity