COMM 151 Chapter Notes -Income Statement, Business Ethics

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13 Apr 2013
March 15th readings
Topic: Ethics
The Inness Company Case
-four major brands of cosmetics, product managers report to brand managers
-performance reviews occur every 3 months and reflect salary
-Lee wants to trade weekend work for longer vacation time, however the brand
manager says this is not possible as this would upset the vacation benefits structure,
but is assured that the structure will be reviewed
-Lee is going to be given her performance review, she is very talented but
sometimes reluctant to give help to other teams, and she gives complaints and
voices opinions, her group bends the rules and there are rumors about favoritism as
she is not punished for her actions
-Chris finds out that Lee has booked a vacation on the expense of the company, lying
saying she was attending a convention, now unsure what to do as he found this
information while snooping
Where Asbestos is just a fact of life
-it is a very dangerous place, many people die from lung cancer and other
respiratory diseases due to asbestos exposure
-there still remains mines in quebec, and they are defended by saying car accidents
are more dangerous than the mines
-asbestos is everywhere, in everything, but the dust and its dangers is just a fact of
life for the people who live around it.
-now that people are more aware of the problem, after surrounding themselves with
it, they are now trying to get ride of it but they also have the problem of the
Canadian asbestos that is now all over the world
-It is possible they were aware of the dangers since 1930 but concealed the
-Canada is on its way to banning asbestos exports, it is a small industry.
-In india, there are no precausions taken to protect workers. They do not even know
it is dangerous, and they all begin to die. Canadas affiliation with this is extremely
damaging to its reputation
Ethical Conflicts at Enron
-Eron was using its own stock to directly generate a gain or avoid a loss on its
income statement. One of the worst accounting frauds hed ever seen
-The top guy at the company did not accept his claims. Eron then went into
bankruptcy. No one took him seriously, no one backed him up
-Justice will prevail because he wrote those memos the company can pick and chose
which accounting rules o follow, therefore must truly reform and change the
accounting system that will be more principle based instead of rules based.
-they were able to get by so many people all in different companies, the scheme was
extremely complex
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