Principles of ManagerialAccounting

QUESTION

Principles of ManagerialAccounting

ACC 112

Spring, 2020

Kenneth J. Horowitz

Writing Assignment #2

Read the linked article from Financial Management: “Anti-corruption efforts slipping across the globe”including the Corruption Perception Index link within the article. Write a reaction paper that includes the following:

1.Summarize the main points of the article. Be brief and to the point.Give some thought to this; do not just re-write the article. Two or three paragraphs should suffice. If you must use more do it, but try to remember that in business writing, as in many other communications, if you don’t get the attention of your audience quickly, all is lost.

2.Give your reaction and recommendations to the issues set forth in the article. This is your opinion. Use whatever documentation you need to support your arguments, both from the article and from your own experiences. Don’t be shy and don’t try to be “politically correct.” I want to know what you think. For purposes of this assignment, the way you express your opinion is more important than the position you take. Try to do this part using no more words than you did in the summary.

3.In light of our global economy and the staggering number of trading countries with a poor track record on anti-corruption practices (see the map under the Corruption Perception Index link), how will you conduct yourself in the business environment while constantly maintaining high ethical standards and avoid any situations that involve corruption?

ANSWER

Maintaining Ethical Standards in a Global Business Environment

Introduction

In today’s interconnected global economy, combating corruption is of paramount importance. The article “Anti-corruption efforts slipping across the globe” highlights the concerning trend of deteriorating anti-corruption measures worldwide. The main points of the article can be summarized as follows:

Summary

The article emphasizes that despite efforts made to tackle corruption, many countries are witnessing a decline in their anti-corruption initiatives. It mentions that the Corruption Perception Index (CPI), an influential tool for measuring corruption levels, reveals a worrisome global scenario. Various factors, including political instability, lack of transparency, and weak enforcement of anti-corruption laws, contribute to this decline. The article also suggests that corrupt practices have severe economic consequences, impeding sustainable growth, and hindering foreign direct investments.

Reaction and Recommendations

In light of the issues raised in the article, it is crucial to acknowledge the severity of the situation and take proactive steps to combat corruption. My reaction to this concerning trend is one of deep concern and a strong belief that immediate action is needed. 

The following recommendations can help address the issue

Strengthening International Collaboration: Governments, international organizations, and businesses must collaborate more closely to share best practices, develop anti-corruption frameworks, and coordinate efforts to fight corruption globally. Collective action is crucial for creating a culture of integrity and transparency (Owusu et al., 2017).

Enhancing Transparency and Accountability: Governments and businesses should prioritize transparency in their operations, decision-making processes, and financial reporting. Implementing robust internal controls, conducting regular audits, and ensuring accountability at all levels can deter corrupt practices.

 Educating and Empowering Individuals: Raising awareness about the detrimental effects of corruption and promoting ethical behavior is essential. By providing training and resources to employees, businesses can cultivate a culture of integrity and empower individuals to resist corrupt practices.

Encouraging Whistleblowing: Establishing mechanisms to encourage and protect whistleblowers can serve as a powerful tool in uncovering corruption. Whistleblower protection laws should be strengthened, and channels for reporting corruption should be made easily accessible and confidential.

Maintaining Ethical Standards in the Business Environment

To navigate the global business environment while upholding high ethical standards and avoiding corruption, individuals should:

Lead by Example: Demonstrating personal integrity and ethical behavior is crucial in influencing others and fostering an ethical culture. Leaders should consistently adhere to ethical standards and set clear expectations for their teams (Harriss et al., 2019).

Conduct Due Diligence: Before engaging in business partnerships or transactions, thorough due diligence should be conducted on potential partners, suppliers, and customers. This includes assessing their reputation, past dealings, and compliance with anti-corruption regulations.

 Implement Robust Internal Controls: Businesses should establish internal control systems to prevent and detect corrupt practices. This includes segregation of duties, regular audits, and independent oversight (Moral Issues in Business, n.d.).

Encourage Reporting and Addressing Concerns: Establishing effective reporting mechanisms within organizations enables employees to report suspected corrupt activities without fear of retaliation. Reported concerns should be promptly investigated, and appropriate actions should be taken.

Conclusion

In a global economy where corruption remains a significant challenge, maintaining high ethical standards is crucial. By actively engaging in anti-corruption efforts, collaborating with stakeholders, and adhering to best practices, individuals and businesses can contribute to a more transparent and ethical business environment. Embracing a zero-tolerance approach towards corruption is essential for fostering sustainable economic growth and ensuring a level playing field for businesses worldwide.

References

Harriss, D. J., MacSween, A., & Atkinson, G. (2019). Ethical Standards in Sport and Exercise Science Research: 2020 Update. International Journal of Sports Medicine, 40(13), 813–817. https://doi.org/10.1055/a-1015-3123

Moral Issues in Business. (n.d.). Google Books. https://books.google.com/books?hl=en&lr=&id=SIrCBAAAQBAJ&oi=fnd&pg=PR3&dq=Maintaining+Ethical+Standards+in+the+Business+Environment&ots=m2LRO866fu&sig=cxwkvMCnqWG6i2m0hx4FKyQs_jU 

Owusu, E. K., Chan, A. S. C., & Shan, M. (2017). Causal Factors of Corruption in Construction Project Management: An Overview. Science and Engineering Ethics, 25(1), 1–31. https://doi.org/10.1007/s11948-017-0002-4