Purchase Solution

Ethics and budget

Not what you're looking for?

Ask Custom Question

1. Since the Enron scandal, Sarbanes Oxley has required controls and sign off of the financial statements by the CEO. This has codified into law what was expected of management. There is constant pressure to deliver the goods and report financial results in line with forecasts. What kind of ethical problems does this create?

2. The importance of budgets in managing business and other financial organizations seems like a no brainer. In some managers it is a mere exercise in numbers and in some organizations it is a political football. What is your opinion on the use of budgets, their purposes and their uses or abuses as a management tool?

Purchase this Solution

Solution Summary

This solution provides an explanation of ethics and budgets as it relates to Sarbanes Oxley. Further, it discusses the importance of budgets in managing a business.

Solution Preview

Hello. I provide the following to assist you with this assignment.

1. What kind of ethical problems does this create?

When an employer places constant pressure to deliver the goods and report financial results in line with forecasts, it could cause employees to hurry to deliver the goods. This in turn could lead to goods that are not up to par with company standards.

The ethical problem in this business practice is:

"Responding to intense pressure for short-term results, people working for corporations often cut corners that they shouldn't. We use all kinds of rationalizations to excuse these behaviors - everything from "everyone does it" to "nobody's getting hurt by this" to "I'd get fired if I complained."

You should "treat an ethical issue like any other business issue. Don't make self-righteous little speeches; instead, marshal your evidence and arguments, figure out who you need to talk to, and then make a ...

Purchase this Solution


Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Operations Management

This quiz tests a student's knowledge about Operations Management