Business Ethics and Integrity in Accounting

Running Head: ACCOUNTING THEORY
ACCOUNTING THEORY
Name of the Student
Name of the University
Author Note

1ACCOUNTING THEORY
Table of Contents
Assignment 1..............................................................................................................................2
Business Ethics and Integrity.................................................................................................2
The Board Consideration.......................................................................................................2
Listening to the employees.....................................................................................................4
Empowerment is leaded by Transparency.............................................................................4
Assignment 2..............................................................................................................................4
Answer to Question a.............................................................................................................4
Major Issues Covered in Exposure Draft of FASB............................................................4
Answer to Question b.............................................................................................................6
Agreement/Disagreement and the Issues among various groups.......................................6
Answer to Question c.............................................................................................................7
Behavior of Regulator as Public Interest Theory...............................................................7
Answer to Question d.............................................................................................................8
Theories of Regulation to the Comment Letters................................................................8
Reference....................................................................................................................................9

2ACCOUNTING THEORY
Assignment 1
Business Ethics and Integrity
According to the article published on Feb 7, 2019, have highlighted the issues relating
to the ethics of the business the integrity. It has been accessed that because of the accusations
of breaching of the ethics as well as due to the lack of the integrity, CEO are existing from
the role. Some of the examples are as follows:
 The CEO of Equifax, Richard Smith has stepped down due to breaching of data by
exposing of the personal details of more than 143 million customers of US that is
about half US population (Trevino & Nelson, 2016).
 Carlos Ghosn, who is the CEO of Renault Nissan Mitsubishi Alliance, has also been
charged to the allegations because he has failed for disclosing the additional
compensation of $80 million for the year 2010 to 2018, by hiding it with the deferral
schemes and transferring the investment losses to Nissan for the year 2008.
 The CEO of TI, Brian Crutcher has been charged with the violations of undisclosed
personal behavior ethics just seven weeks of taking position as the CEO and working
experience of 22 years (Forbes.com., 2019).
The Board Consideration
As per the watchdog of the governance, it has been analyzed that, the accountability
of the those executive who are at top will be improved by the divisions of the roles, system of
balances and checks which makes it very difficult for getting away with the act of practices
that is unethical such as false reports of expenses. The perfect example of it is the situation of
the Renault- Nissan with the CEO Carlos Ghosn. Under this, the split chairman as well as the
role of CEO may have deterred the misstep compensation (Trevino & Nelson, 2016).

3ACCOUNTING THEORY
It should be ensured that the board of the company completely vets into the suites of
executive. The CEO of the Yahoo, Scott Thompson has to step down from the post of CEO
after it has been revealed that, he had inflated his resume by showing and claiming that had
computer science degree as well as computer science degree. If was find that, his resume and
its accuracy was not checked by anyone. In order to deal with this issue, third parties should
be given the responsibility for these checks (Trevino & Nelson, 2016).
Whistleblowers as well as the sources are using the anonymously social sharing apps
such as Whisper for breaking the news. It was the Whisper source, through which the CEO of
the American Apparel, Dov Charney was accused for the unethical behavior of the multiple
variations. The board of the company should be aware as well as they should consider for
monitoring of these sites (Forbes.com., 2019).
Factors Responsible
 Now a day, the board of the company has become more focused on the succession
planning, facing greater from the public and the investors as well as board becoming
reactive to the news cycle pressure of the real time social media (Trevino & Nelson,
2016).
 The world of the digital media as well as machine of the social media is primed for
exposing the bad behavior which might have got unnoticed during the past and
negative stories of 24/7 news cycle catching fire on the social media (Trevino &
Nelson, 2016).
 When it comes to the bad behavior as well as the outery of public that is combined
with activist threat investors, the public is getting more skeptical as well as less
forgiving. This has prompted the boards for reacting more often. Lot of mistrust has
been created due to financial crisis. According to the revelation of Edelman Trust