Effect of Unethical Behavior Article Analysis

Effect of Unethical Behavior Article Analysis In like a shots gentleman, wrong practices and demeanour ar quite common. in that respect are many an opposite(prenominal) situations known of wrong practices in the method of accounting world such as Enron, WorldCom, and plain the mortgage crisis our landed soil is currently working to get out of. With all of these instances of unethical channel and accounting practices happening, the question is what is driving these companies to do this. in that respect are many assertable answers out at that place and this condition points brings up a very good possible reason, rival. many an(prenominal) companies in highly competitive industries are potential to condescend the rules to keep their customers, (Williams, 2012). Businesses are constantly competing with each other to touch new business, grow existing business, and ultimately augment their profits. unfortunately too many companies feel that in ensnare to require this happen they need to cut some corners, entirely they are non thinking of the long term set up that this fire have on their company and their customers. Just because a business might increase its customer base does not blotto that it has increased its profits. So, in order to lure in to a greater extent than investors companies may play with the number in their books to show a better profit margin.

This helps them to escort more profitable and to even look better than their competitors. This clause suggests that competition puts pressure on businesses and with that pressure may discern the push to exercise unethical practices. Exe! cutives are being pressure to focus on short-term results which kindle cause them to suffer focus on the long-run effects that unethical practices can have. An excessive focus on short-term results because of intense competition is a factor in some executives willingness to engage in unethical practices, (Williams, 2012). In 2002 the Sarbanes-Oxley spot (SOX) was created to make accounting in corporate business more transparent. The Securities and Exchange Commission (SEC) enforces the rules...If you insufficiency to get a panoptic essay, order it on our website: OrderCustomPaper.com

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