Matching Items (24)
Description
An ethical dilemma is not a matter of “right” versus “wrong,” but rather it is a situation of conflicting values. A common ethical dilemma is that of honesty versus loyalty—is it better to tell the truth, or remain loyal to the company? In the Japanese culture, truth is circumstantial and can vary with different situations. In a way, the Japanese idea of honesty reflects how highly they value loyalty. This overlap of values results in the lack of an ethical dilemma for the Japanese, which creates a new risk for fraud. Without this struggle, a Japanese employee does not have strong justification against committing fraud if it aligns with his values of honesty and loyalty.
This paper looks at the Japanese values relating to honesty and loyalty to show how much these ideas overlap. The lack of a conflict of values creates a risk for fraud, which will be shown through an analysis of the scandals of two Japanese companies, Toshiba and Olympus. These scandals shine light on the complexity of the ethical dilemma for the Japanese employees; since their sense of circumstantial honesty encourages them to lie if it maintains the harmony of the group, there is little stopping them from committing the fraud that their superiors asked them to commit.
In a global economy, understanding the ways that values impact business and decisions is important for both interacting with others and anticipating potential conflicts, including those that may result in or indicate potential red flags for fraud.
This paper looks at the Japanese values relating to honesty and loyalty to show how much these ideas overlap. The lack of a conflict of values creates a risk for fraud, which will be shown through an analysis of the scandals of two Japanese companies, Toshiba and Olympus. These scandals shine light on the complexity of the ethical dilemma for the Japanese employees; since their sense of circumstantial honesty encourages them to lie if it maintains the harmony of the group, there is little stopping them from committing the fraud that their superiors asked them to commit.
In a global economy, understanding the ways that values impact business and decisions is important for both interacting with others and anticipating potential conflicts, including those that may result in or indicate potential red flags for fraud.
ContributorsTabar, Kelly Ann (Author) / Samuelson, Melissa (Thesis director) / Goldman, Alan (Committee member) / WPC Graduate Programs (Contributor) / W.P. Carey School of Business (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
Financial statements are one of the most important, if not the most important, documents for investors. These statements are prepared quarterly and yearly by the company accounting department, and are then audited in detail by a large external accounting firm. Investors use these documents to determine the value of the company, and trust that the company was truthful in its statements, and the auditing firm correctly audited the company's financial statements for any mistakes in their books and balances. Mistakes on a company's financial statements can be costly. However, financial fraud on the statements can be outright disastrous. Penalties for accounting fraud can include individual lifetime prison sentences, as well as company fines for billions of dollars. As students in the accounting major, it is our responsibility to ensure that financial statements are accurate and truthful to protect ourselves, other stakeholders, and the companies we work for. This ethics game takes the stories of Enron, WorldCom, and Lehman Brothers and uses them to help students identify financial fraud and how it can be prevented, as well as the consequences behind unethical decisions in financial reporting. The Enron scandal involved CEO Kenneth Lay and his predecessor Jeffery Skilling hiding losses in their financial statements with the help of their auditing firm, Arthur Andersen. Enron collapsed in 2002, and Lay was sentenced to 45 years in prison with his conspirator Skilling sentenced to 24 years in prison. In the WorldCom scandal, CEO Bernard "Bernie" Ebbers booked line costs as capital expenses (overstating WorldCom's assets), and created fraudulent accounts to inflate revenue and WorldCom's profit. Ebbers was sentenced to 25 years in prison and lost his title as WorldCom's Chief Executive Officer. Lehman Brothers took advantage of a loophole in accounting procedure Repo 105, that let the firm hide $50 billion in profits. No one at Lehman Brothers was sentenced to jail since the transaction was technically considered legal, but Lehman was the largest investment bank to fail and the only large financial institution that was not bailed out by the U.S. government.
ContributorsPanikkar, Manoj Madhuraj (Author) / Samuelson, Melissa (Thesis director) / Ahmad, Altaf (Committee member) / Department of Information Systems (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
ContributorsLarscheid, Elizabeth (Author) / Samuelson, Melissa (Thesis director) / Casas-Arce, Pablo (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
The Italian luxury fashion industry is home to many of the world's top fashion houses and is intricately connected to traditional Italian cultural values. Over the past several decades, Italian luxury fashion has been highly desirable throughout markets across the world due to its exquisite design and craftsmanship. Since the conclusion of World War II the Italian luxury fashion industry has continuously developed and been highly successful in foreign markets, notably including the United States. This study explores cross-cultural management in the Italian luxury fashion industry from an American perspective. The report begins with a brief history of the industry beginning in 1945 and extending into the early 2000s, a period characterized by tremendous growth domestically and abroad. Subsequently, three cross-cultural management frameworks are utilized to compare Italian and American culture values including Erin Meyer's "The Culture Map," Geert Hofstede's Psychological Framework, and Fons Trompenaars' Expansive Framework. This research serves as the foundation for the final component of the report detailing a cross-cultural management framework for American partners in the Italian luxury fashion industry. This framework reflects potential areas of cross-cultural conflict in addition to current trends within the industry, such as increasingly complex supply chains. The framework is divided into four sections \u2014 Strategic Leadership; Internationalization; Value Chains, Sustainability, and Innovation; and Exclusivity and the "Made in Italy" Label in a Global Economy. Along with the discussion of each component, mini case studies highlighting four of the leading companies in the market \u2014 Versace, Gucci, Prada, and Armani \u2014 are included. Each of these mini case studies provides a brief overview of the company and takes a unique perspective illustrating one or more components of the cross-cultural management practices essential to the successful operation of global fashion houses. The report concludes with three cross-cultural dimensions in which American managers should be especially vigilant when navigating the Italian luxury fashion industry including time orientation, task-based versus relationship-based trust, and neutral versus affective communication. The findings from this study are aimed at executive coaching and consulting environments due to the current lack of literature on the Italian luxury fashion industry.
ContributorsCoffman, Kaitlin Taylor (Author) / Goldman, Alan (Thesis director) / Frost, Donald (Committee member) / W.P. Carey School of Business (Contributor) / Department of Management and Entrepreneurship (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
The results in this research study shows that experience with corruption affects a person's behavior, although it does not impact their attitude towards corruption. Condemnation to both corruption and bribery is widespread amongst citizens of both countries; however, more Angolan citizens experienced bribe demands and confessed paying more bribes than Brazilians did. This paper studies the effect of corruption towards citizens by analyzing a sample of 200 surveyed Brazilians and Angolans. The surveys questioned participants about their (i.) experience with corruption by looking at the number of bribe demands, (ii.) attitudes by identifying their values or views towards corruption and bribery and finally (iii.) their behavior through their actions.
ContributorsFernandes, Domingas Manuela Da Fonseca (Author) / Samuelson, Melissa (Thesis director) / Kaplan, Steve (Committee member) / School of International Letters and Cultures (Contributor) / School of Accountancy (Contributor) / Department of Information Systems (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
Dysfunctional organizations and toxic leader behavior has been increasingly examined over the past few years. Scholars, consultants and the media have analyzed and considered a variety of causes underlying destructive company practices and the bad behavior of bosses. Much is at stake as both individual and company is at risk along with shareholders. In this study I identify some dysfunctions in organizations, dimensions of destructive leaders and the impact in the workplace and the community. Moreover, I provide ideas for preventative measures and how dysfunctional practices can be identified and dealt with. I begin with a brief background introduction to the subject matter and proceed with an examination of some signs and behaviors displayed in the dysfunctional workplace. How does departmental, divisional and companywide dysfunction impact employee levels of trust, emotional intelligence and performance? What is the cost of company dysfunction on leaders? Following an exhaustive examination of relevant research, I have decided to focus on two specific sources due to their impact on corporate, consulting and academic communities. I utilize Babiak and Hare's, Snakes in Suits and Stanford Professor Robert Sutton's book, The No Asshole Rule. Building upon these works and the composite of research reviewed by these key scholars I move forward to a real- world case of a dysfunctional organizational and toxic CEO via an examination of Uber Technologies Inc. I will be revealing dimensions of both Uber's wide-reaching dysfunction and the workings of a CEO who has been identified as a psychopath. I provide ideas for identifying the dysfunctional organization (with Uber as a prototype) and look at possible means of generating solutions and actions for combatting excessively negative and destructive organizational and leader behavior. Finally, I am concerned with takeaways and pragmatic implications offered by my research.
ContributorsMolina, Alissa Ruth (Author) / Goldman, Alan (Thesis director) / Trujillo, Rhett (Committee member) / Dean, Herberger Institute for Design and the Arts (Contributor) / Department of Management and Entrepreneurship (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
Blockchain is a sophisticated and complex technology that will have a massive impact on the public accounting industry. Currently there is concern surrounding how blockchain may impact the industry as a whole. Auditors and accountants are worried that this technology has the potential to replace the responsibilities they fulfill. However, blockchain technology will not replace accountants and will enhance their daily activities by eliminating menial tasks, providing increased transparency, and allowing time to be spent in areas that require more consideration. This will change the role of accountants and professionals, requiring them to be more technologically proficient and analytically minded. This paper is organized as follows. There will be an initial explanation of the technology to inform the reader of what blockchain is and how it works. Then there will be a discussion regarding how blockchain technology relates to, and can be utilized by, public accounting firms as well as the implications of blockchain on the public accounting industry. These implications will be discussed followed by why they are extraneous, and how to combat them in both the assurance and advisory practices. In conclusion, recommendations will be provided for public accounting firms on how to effectively utilize the technology to their benefit.
ContributorsLomsdalen, Stephen A (Co-author) / Charen, Stephanie (Co-author) / Samuelson, Melissa (Thesis director) / Garverick, Michael (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
This thesis analyzes the connection between introversion and success in public accounting by looking at traits introverts need to develop in order to do well in this field. The paper begins by giving a background on both public accounting and introversion and why the relationship between these two needs to be studied. It discusses how introversion is not the norm in business, but how the traits outlined in the paper give introverts a strong opportunity for success. The first trait looked at is one-on-one skills and how the ability to communicate well in small groups helps introverts in public accounting to build solid relationships with their clients and coworkers. Next, the paper talks about public speaking and how introverts need to lean into their ability to prepare thoroughly in order to avoid speaking anxiety, which likely plagues them. After that, the paper looks at networking and how an introvert's ability to create deep connections outweighs some natural setbacks they may face in this endeavor. The final trait analyzed is creativity and how introverts possess a unique aptitude in this area because of the differences in how they think and process information. For public accounting, this is a useful skill, especially when it comes to problem solving. The last section of this thesis examines the importance of self-awareness for introverts to understand themselves and be understood by others while working on teams. The conclusion of this paper outlines the main ideas on how introverts can succeed in public accounting by leaning into these traits, owning who they are, and contributing from their unique perspective.
ContributorsSanders, Mikayla Ann (Author) / Samuelson, Melissa (Thesis director) / Huston, Ryan (Committee member) / W. P. Carey School of Business (Contributor) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2017-12
Description
The Olympus case gives students an opportunity to analyze the factors and unique cultural environment that led to the accounting fraud in whistle blower Michael Woodford's perspective. It also provides students insights into a traditionally- structured Japanese company to identify the operation style and leadership distinctions from a U.S. structured company. The case is presented from the comprehensive public record and the book How I Went from CEO to Whistleblower, written by Michael Woodford, all surrounding the Olympus fraud and insider whistleblowing. A primary question that arose when the news of the fraud emerged in the media was: Did the accounting fraud solely result from the failure of Japanese executives' leadership style? Some people think that the Olympus president Tsuyoshi Kikukawa who owned ultimate power over the company is supposed to bear the most responsibility for this issue. However, this case argues that the answer to the previous question is no. What's more important than the corrupt executives is Olympus' operational system that indulged those executives' ambition. Therefore, the case focuses on an analysis of the operating system in regard to leadership, culture, internal controls, external controls and the board of directors. This analysis addresses the failure of Olympus comprehensively rather than placing blame on a single individual. It is an opportunity for students to understand and discuss the multiple aspects of a corporate system that should have the practicable controls and functions to prevent the abuse of decision-making power as well as the illegal activity from occurring.
ContributorsFan, Haiyi (Author) / Samuelson, Melissa (Thesis director) / Pany, Kurt (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
Description
Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average Americans. There were several US criminal code sections that resulted from the passing of SOX. Statute 1519, which is often referred to as the "anti-shredding provision", penalizes anyone who "knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to" obstruct a current or foreseeable federal investigation. This statute, although intended to punish behavior similar to that which occurred in the early 2000s by corporations and auditors, has been used to charge people beyond its original intent. Several issues with the crafting of the statute cause its broad application and some litigation even reached the Supreme Court due to its vague wording. Not only is the statute being applied beyond the intent, there are other issues that legal scholars have critiqued it for. This statute is far from being the only law facing these issues as the same issues and critiques are found in the 14th amendment. Rewriting the statute seems to be the most effective way to address the concerns of judges, lawyers and defendants regarding the statute. In addition, Congress could have passed this statute outside of SOX to avoid being seen as overreaching if obstruction of justice related to documents was actually an issue outside of corporate fraud.
ContributorsGonzalez, Joana (Author) / Samuelson, Melissa (Thesis director) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12