Accounting Ethics: the Real Situation of the Company Essay Sample

It depended on did he state the existent state of affairs of the company or non.

If he told the truth. First. I would acknowledge the ethical quandary. If the loan isn’t obtained. the company may travel under. go forthing more than 100 people without occupations. But to guarantee that company receives the loan. I have to exaggerate the company’s gross revenues and net income for its most recent financial twelvemonth.

Second. I would travel toward an ethical declaration by placing and analysing the chief elements in the state of affairs. The stakeholders are bank. stockholders and materials of our company. If we would be able refund the loan. bank would acquire involvements. stockholders would acquire profit. employees would non be unemployed. But misrepresent Kokomo’s fiscal informations will go against bank’s right to cognize. There are no existent involvement are in struggle. My duties and duties are salvage their occupation for employees. and to refund the loan for the bank.

Third. I would see some replacings for this strategy. 1. Use the loan with existent fiscal studies. The net incomes have been merely worsening over the past two old ages. but non sustain losingss in concern. it have a high possibility that bank will accept the loan apply. But. if they won’t. company might be confronted staffs decrease. 2. Make a staff decrease program. layoff people who did non work hard. It will raise morale of staffs who worked difficult. But if everyone does themselves’ work every bit good. it would be backfired. Materials might be worried and dissatisfied so capacity lessening. In any instance. layoff is immorality because of the concern societal duty.

Finally. through consider all the fortunes and the effects ; I might do the same determination with Michael’s. Dependent on the act utilitarianism. a person’s act is morally right if and merely if it produces at least every bit much felicity as any other Acts of the Apostless that the individual could execute at that clip. I believe overstated the net income to guarantee the loan will be applied is the best and most ethical solution.

But if Michael lied with the state of affairs or hold a incorrect perceptual experience of the company. I would non exaggerate to use the loan. Because if I do so. so company would non better due to some other grounds. and could non refund the loan. whoever each one of the stakeholders would be impaired. Bank would presume more hazards ; employees still faced on be unemployed ; shareholder’s benefit would be harmed. It’s non ethical at all.