Organizational Ethics and Corporate Governance

An organizations culture and governance can determine success or failure on ethics. The US and other countries experienced accounting ethical failure that cost shareholders and stakeholders large amount of money due to inflation and deception when corporate Governance failed. Members of the audit committee were not independent members on the board of directors. Questionable ethics worked against competent organizational behavior.

Client Confidentiality was compromised, Generally accepted auditing standards were (GAAS) call for examining the contents of the financial statements and professional negligence. False receipts, and invoices, credits were mis reported as income and no statements to confirm accounts receivables during an audit such rules were not followed.

Answer the 1 or more of the following discussion questions.

What systems were necessary to ensure that a company runs efficiently and ethically

What role does the corporate culture and ethical leadership play in creating an ethical organization?