Question

, please write regarding whether you believe earnings management is or is not ethical. Please write from the perspective of a CEO of a publicly-traded corporation who has a fiduciary duty to his or her shareholders. A top-scoring answer will address balancing the duty of earning profits for shareholders against the responsibility to behave ethically. plesse answer as loong as you can

Answer 1

THE TERM' ETHICS' IS DERIVED FROM THE GREEK WORD '' ETHOS''WHICH MEANS CHARACTER.ETHICS ARE THE PRINCIPLES OF CONDUCT GOVERNING AN INDIVIDUAL OR A GROUP.IT IS CONCERNED WITH NORMS FOR CONDUCT OF PEOPLE AS MEMBERS OF SOCIETY AS IT RELATES TO WHAT IS GOOD OR BAD ,AND HAVING TO DO WITH MORAL DUTIES AND OBLIGATIONS.

BUSINESS ETHICS REFERS TO THE APPLICATION OF EVERYDAY MORAL OR ETHICAL NORMS TO BUSINESS .IT REQUIRES AN AWARENESS OF HOW THE PRODUCTS AND SERVICES OF AN ORGANISATION AND THE ACTIONS OF ITS EMPLOYEES,CAN AFFECT ITS STAKEHOLDERS AND SOCIETY AS A WHOLE ,EITHER POSITIVELY OR NEGATIVELY.

THOUGH EARNING PROFIT FOR ANY ORGANIZATION IS ITS PRIMARY OBJECTIVE AND FOLLOWING ETHICS IN IT'S PATH OF ACHEIVING PROFIT CAN BECOME ETHICAL WAY OF ACHEIVING ITS OBJECTIVE.BUT AT SOME TIME WE FACE THE PROBLEM WHEN WE COME AT THAT POINT WHERE WE CAN EITEHER EARN PROFIT OR CAN OPT FOR EARNING PROFIT ,THIS SITUATION IS CALLED ETHICAL ISSUE.BALANCING BOTH BEING ETHICAL AND FULLFILLING ITS RESPONSIBILITY AGAINST SHAREHOLDERS IS A TOUGH TASK WHICH REQUIRES A CEO TO BE KNOWLEDGABLE,DECESIVE,EXPERIENCED AND LOGICAL SO HE CAN BE ABLE TO TAKE RIGHT DECISION .

BEING ETHICAL WILL HELP AN ENTITY TO SURVIVE IN LONG RUN,SOCIETY GIVES A CHARTER TO BUSINESS TO SURVIVE BY PROVIDING RESOURCES AND FACILITY SO IT MUST BE RESPONSIBLE FOER BOTH OBLIGATION.