Is earnings management ethical essay

For some investors, it will result in some direct merits, for instances, there will be no need for them to spend an extra fee on learning different kinds of accounting regulations any more. Except this, the risk of taking poor decision caused by misunderstanding different accounting standards will also be reduced. That means global accounting standards can promote the cooperation between companies to contribute more financial transactions. Obviously, the appearance of direct merits sometimes comes along with the indirect merits. Sarbanes Oxley has changed internal controls through risk mitigation and accountability.

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(PDF) (a) Slack - Operations Management 7th Edition c (2) | Anish Muhammed -

Earning management is good or not? Introdcution This essay is to examine whether earning management is it good or bad. Though there is so many debate about whether it should be accepted to be good rather than bad, however, this essay will explain the both side of earnings management. Earnings management reduces the quality of financial reporting, it can interfere with the resource allocation in the economy and can bring adverse consequences to the financial market. This essay analyses both, causes.

(a) Slack - Operations Management 7th Edition c2013 (2)

This is something that company Q was not keeping in mind because their actions were negatively affecting many of their direct stakeholders which included employees and customers. Company Q was putting their own interests before the interests of employees and customers, which caused employees to lose their jobs and customers their access to daily sustenance. While being more worried about maximizing their own profits, company Q lost sight of maximizing the benefits of their customers and employees. Although it is important for companies to prioritize profitability, it is equally important to be socially responsible because it develops long-lasting relationships between their employees and customers.
Richard Horn The importance of ethics in management In view of global crises such as the common threat imposed to the natural environment or the underdevelopment in the Third World child labor , forced labor , catastrophic working conditions in the factories , etc. More and more people wonder about the meaning and value of economic development. Certainly, the public has grown and expressed.
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