AFM131 Lecture Notes - Lecture 7: Federal Accountability Act, Adelphia Communications Corporation, Accounting Scandals

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

People learn standards and values from observing, not from hearing what they say. 2 ethics codes: compliance based= emphasize prevention of unlawful behaviour by increasing control and penalizing wrongdoers integrity based =define organizations values, environment of ethically sound behaviour and stress shared accountability among employers. Factor in success of ethics code= ethics officer relate to employees, maintain confidentiality, demonstrate to stakeholders importance of ethics. Ethics practioners association of canada= supports ethics officers, consultants, educators, students who are interested in field of ethics. Sarbanes oxley act (2002) implemented by accounting scandals in u. s. in early 2000s (tyco, enron, worldcom, Corporate social responsibility: businesses" concern for welfare of society, not always agreed upon, economist milton friedman, believed csr moves towards socialism, some believe it makes more money in the long run. Powerful influences on a company"s effectiveness and financial performance is responsible human resource management.