Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image. Another pressure presented in this case for Cendant Corporation was that for the top management once again. The top management needed to have their financial information seem profitable, therefore pressured the accountant of the company to falsify and “cook the books” to make the financial statements seem actually “profitable” when it wasn’t what It really was. As said in the previous question, income smoothing was used in this case by Cendant Corporation as an unethical practice to make the investors believe that their shares were all bright
The possible abuses in capitalist market may include business firms and manufacturers using unethical business practices during the production or manufacturing of products. As businesses firms and manufacturers in capitalism are profit-oriented, they tend to ignore the consideration of the potentially consequences of their products to their consumers. Hence, they are more likely to produce products that are in demand, as long as the profit motive is achieved. For instance, the car manufacturers might ignore the importance of installing seat-belts, air-bags and other safety features as these safety devices lowered their revenues. As a result, consumers in capitalist market or the society as a whole would be exposed to products that are unsafe and harmful such as defective goods.
Egoism impacts Verizon’s ethical business decision making because there could be those decision makers that make their decision based solely on how it will benefit themselves. This could be a severe problem for a company because someone’s greed could affect all the stakeholders of Verizon. Unfortunately, there are may self-centered individuals who only care about themselves and how much they can benefit from a decision, regardless of how it will affect others. Some examples of this could be someone who takes part in insider trading and someone who take part in collusion where they solely receive financial
Corporate Cultural Dissonance or Not Dissonance is a condition where what is happening is not in agreement with what is thought to be in a given environment. Commonly referred to as cognitive dissonance; when applied to the behavior witnessed in corporations, it is known as cultural dissonance. At first glance, the fictitious company Finer Bags appears to be suffering from an ethical misalignment. However, an examination of their statements and actions would reveal the two are congruent within the organization. Given the material provided regarding the company, I will present the case that the actions of FinerBags.com is in alignment with their business ethics.
Ethical behavior is a representation of leader’s self-reflection of who they truly are, and with past multi-billion dollar companies reported committing unethical and unmoral acts of behavior, it is imperative that leaders fully comprehend the ramifications related to their unethical behavior. Furthermore, an ethical virtue demonstrated by a leader paves the foundation for their followers to behave with the same ethical behavior established within the organization thus establishing a followers’ commitment to their organization. Additionally, the rise in corporate ethical scandals today representing the unethical behavior and, raising awareness relevant to the investigation into their illegal and unethical acts of conduct. The fact that leaders
If other companies that did not have the image of the company resting on an individual’s reputation had the same occurrence from a CEO or business leader, the brand equity would not have as much of a probability to suffer. Conclusion The insider trading scandal with Martha Stewart represents an important example of the risk associated with branding a company with an individual. As soon as the company brands themselves under an individual’s name, the corporation has the risk of rising or falling in profits based on the reputation and the ethical implications of the individual. Businesses should exercise care with branding a company on an individual and avoid it as much as
As the advertisement is giving a false and non-scientific statement and it will misguide the public. I think that Vibram should test their product by conducting some experiment to verify the abilities of the product. • Economic Point of View Although profit is often use to measure the success of the company, but an organization should also doing businesses ethically. However, doing business ethically would give some impact to your organization. In this scenario, Vibram will experience a huge lost of profit.
You would think that such a well-known business would prioritize ethics in order to differentiate themselves from other corrupt companies. As such a prestigious company, I expected Volkswagen to act with more respect to the well being of their employees, customers, and the rest of the world. They have soiled their good name and it seems almost impossible for Volkswagen to re-establish themselves as the trustworthy, honest, and reliable company they once were. If I was the Chief Executive Officer of VW, I would have done differently by using Utilitarianism and my personal core
The bulk of corporations prioritize their wealth over the condition of the Earth beneath them. Economic growth is important for the people, yes; it is how we develop as a society, but at what cost? The Earth takes the brunt of society 's success, and denying the inevitable will not stop it from occurring. In fact, denying climate change will only harm society and the Earth further; because by denying it, those who deny climate change are willingly aiding the damage and the danger climate change brings. Climate change is denied is due to the prioritization of business and the economy.
Trying to ignore the social responsibilities might stain an organization’s image and reputation. Thus, performing social responsibility is not simply a choice; it is a need of any corporation. In the twenty-first century, businesses are in the bottlenecks where globalization, science and technology advancement and integrated knowledge are taking place in today’s society (Chan, n.d.). To gain a foothold in this economy, image and reputation play an important role to differentiate a company from one another. With good reputation, it helps firms to create competitive advantage in the business environment.