Avoiding quicksand in the swamp of stakeholder conflicts
Article Abstract:
Managerial accountants face pressures from the conflicting demands of different stakeholders as a result of their responsibility for developing and monitoring internal controls that govern a corporation. Managerial accountants must avoid the appearance of unethical conduct when balancing conflicting demands. Managerial accountants caught between conflicting stakeholder demands should determine whether there is a fiduciary obligation to the stakeholder. Satisfying the demands of stakeholders holding fiduciary obligations should be the priority. In order to handle the demands of stakeholders without fiduciary obligations, the company should have a code of conduct for eliminating conflicts of interest. Managerial accountants must remember that all competing interest are legitimate and should be balanced so that each stakeholder's claim is at least partially fulfilled.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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A matter of trust
Article Abstract:
Ethics embodied in a corporate creed that serves the public interest is not only morally correct but is ultimately good for business by fostering public's trust. Johnson and Johnson has a long established credo as the basis of its corporate ethics which served as the basis for maintaining public trust during the two Tylenol cyanide poisonings in 1982 and 1985. Johnson and Johnson's credo committed the company to $240 million worth of voluntary actions in order to ensure public safety. Due to these efforts and the company's close cooperation with the Federal Bureau of Investigation and the Food and Drug Administration, the public perceived Johnson and Johnson as trustworthy and Tylenol regained its primary share of the analgesic market in both 1982 and 1985.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
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Ethics: cases in accounting ethics and professionalism
Article Abstract:
A hypothetical case illustrating pertinent issues in accounting ethics and professionalism of a sample firm is presented. The case involves the negative response of the management of the firm to a recommendation of the company's controller for the establishment of a reserve fund to offset the potential consequences of a build-up in inventory attributable to declining sales of one of the firm's products. The company's management objects because they believe that the reduction of profits and earnings per share of a write-off would have a negative impact on a public stock offering. Management desires to hold off establishing the reserve fund until after the external auditors year-end review and the public release of financial statements.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
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