ethical issue
TRANSCRIPT
Business scandal
• RMIT UNIVERSITY • Sothara Mony, • 3465308 • Ethics and accountability • Tutor : Greg Mcleod • 14. 11. 2015
Brief scandal
• OLYMPUS
• Accounting fraud ( misleading profit )
• Auditors partly involved• Wrong dismissal resignation
• TOSHIBA
• Profit inflation ( 1.2 billion )• Postponed financial record
4 main causes : • Accounting issues: • cookie jar, no disclosure
• Legal issues : • misleading the financial statement
• Cooperate governance issues: • shaky internal control , utilitarianism issues
• Ethical issues : • dishonesty, disloyalty, unethical culture
Comparison to Enron’s scandal
• Similarity : • Accounting irregularities • Top officers are the fraud makers
• Difference : • Timing • economic condition
Recommendations
• Regulation :
• Implement professional accounting standard & expertized checking
• Government: hold explicit law, merge committees
• Codes of conduct
• Individual : ethical responsibility and high standard skills/practices
• Encourage whistleblowing
• lower discretionary power
• Stronger ethical guideline
• Thank you.