Ethical Code of Conduct - Case Study Example

Ethical code of conduct Name: Tutor: Course Name: Course Code: Date Executive summary Corporate financial statements are prepared and presented to disclose the company financial situation and performances to the external users. Financial statement defines the corporations going concern state thus depict viable information for the users in making investment decisions[OCF09]. The Accounting conceptual framework describes that corporate financial statements are prepared with an assumption that the corporation is a going concern hence it will endure its operation for a foreseeable future. Disclosures of company’s financial assets is presented in the balance sheet and changes in the value is reported in income statement and cash flows as gain or loss. Introduction Reputation is a corporate’s most-valuable assets which predefine the corporation image and perceptions from the outsiders. Reputation is considered as an image and perception of the organization in the eyes of the public that determines the trust and honor to the business activities.[Dav06] The perception of good corporate reputation accentuates the fundamental confident level for both customers and investors since reputation as an assets positively attributes the company’s performance sensitivity. Reputation is considerate corporate valuable assets since is changes is dynamic as it can gain or lose value faster as compared to other assets. Good reputation influences the decision made by the company’s consumers in favoring corporates brands as well as emphasizing company’s stability thus configures investing image to the potential investors and stakeholders. Good reputation claimed to be the valuable corporates assets is susceptible to damage[Ada08]. Management need to emphasize more to safeguard the corporates reputation index since any damage will consequently lead slack in cynical public. However, damage of corporate reputation has great impact on financial performances as well as diminishing corporate trust which cannot restored efficiently. Reporting and valuing reputation Reputation is claimed to be intangible assets vest on the people’s and their ideas. Reputation does not constitute to corporates risk since it has no financial expression thus it does not fall within risk reporting[Gre07]. The consideration of excellent corporate reputation defines by very skilled management team and brand equities is impossible to assess their significant worth since they were not acquired for a specific cost. An attempt to value reputation is spurious since its drivers are dynamic hence lack disclosures initiatives[Ric13]. However, financial statement does not reveals the value of corporates reputation as an assets in balance sheet since its worth cannot objectively measured in dollars hence they cannot reported as assets with no worth. Leighton code of ethics disclosures Company’s code of ethics is a fundamental component in enhancing company’s reputational culture through capitalizing on building customer loyalty, as well as good working environment. However, company’s need to conceptualize on adopting and implementing of ethical policies to realize the full benefits to the company. Leighton Company reveals in 2011 annual report page 37 that the company adopted the revised code of ethics setting out the standards and principles to be adopted by the employees to management[Gre07]. Leighton embraces full ethical commitment by implementing ethical framework governing the employee behavior and performances to achieve high standards of conduct in company’s activities. Leighton Company’s 2011 annual report discloses that company disclosure commitments in ensuring that ethical policies are well described and followed in the company. It is the responsibility of the company’s directors to ensure that the company complies on the requirement of financial accounting standards board in adopting adequate ethical policies and discloses in the consolidated annual report. This is because the shareholders of the company will clearly want to understand the true ethical standards adopted by the company in accordance to relevant accounting standards[Dav06]. Financial Accounting Standards Board accredits the company’s disclosures measures that ensure that the ethical policies are presented consistently in annual report. Leighton annual report discloses ethical codes of conduct and emphasize on the procedures adopted to instigate adopting of ethical conduct. Good working environment Corporate governance report heightens on ethical compliance on discharging its duties to ensure committee attend meeting in time unless of viable material personal issues. This describes that Leighton’s complies with ethical measures and requirements[Dav06]. The decisive accounting policies of disclosure bearing information that enhances clear review of company financial condition describes Leighton’s compliance in ethical code of conduct. Leighton’s directors policies enhancing good working environment as well as managerial employee coalitions to ensures that entity Leighton’s takes in account evenhanded ethical code of conduct procedures. Protecting environment Leighton’s 2011 annual report p.60 describes company’s significant measures towards realizing its group corporate investment in protecting the environment. This signifies that Leighton’s Company configures the ethical disclosures in its annual report. Reporting Leighton’s annual report reflects the significant compliance in adopting all the requirement of the accounting standards. The company complies with the requirement of accounting policy describes by financial accounting standards board and apply the stipulated accounting methods, and principles possess a wide range of general description[Ada08]. Leighton’s significant compliance in reporting initiatives describes that the company complies with ethical code of conduct. Leighton’s structure of encouraging ethical behaviors Ethics and compliance committee Leighton’s 2011 annual report page 34 describes that the company has evenhanded boards of committees and executives that promote the formation of ethical policies as well as enhancing the discharge of ethical behaviors within the company. The board correlate with the ethical standards requirement to describe employee and management procedures on ethics[Ste06]. This ethical and compliance committee structure signifies the Leighton’s systems of encouraging ethical behavioral within the company in enhancing its reputation. Induction and training of director and employees Leighton Company encourages ethical behaviors by capitalize on of training and inducting new directors and employees in the pragmatic procedures and polices encoding ethical code of conduct[Dav06]. The company conceptualize on providing continuing training and educating directors on the new form of ethical code of conduct to enhance current briefing new ethical requirement. Promotion and of ethical and responsible decision-making Leighton Company encourages ethical behaviors through defines promotional decision-making strategies that allow consequent improvement of established ethical code of conduct. The company has implemented ethical dimension reporting which describes the required ethical standards in the entity[Ada08]. Moreover, Leighton’s ethic reporting system describes disciplinary measure against the breaches of ethical codes. Impression on the Leighton’s ethical behavior Based on pragmatic analysis on Leighton’s ethical behaviors, the company’s 2011 annual report describes and evenhanded description of the ethical code of conduct. Leighton’s exercise follow-up procedures in ensuring that the company ethical code are implemented[OCF09]. The directors emphasizing on major ethical initiatives enunciates that the company attitude in implementing the ethical standards. According to the 2011 annual report page 38, the company articulates that it follows the requirements and report on the ethical procedures and policies to safeguards reputation[Ada08]. Moreover, the auditor’s report describes the financial statement reveals true and fair view of the company’s state of affairs. The assurance given by the company’s auditor on the financial statements validate the measures taken by Leighton’s on promoting ethical behaviors. However this accentuates that the company adheres to code of ethics standards requirement in enhancing good working environment as well as promoting organization reputation through quality performances. Media presentation on unethical behavior by Leighton employees Leighton’s media report articulates a contradictory ethical norms with the company’s interpretation’s stipulated in the annual report[Ste06]. According to the Rob Homer, Leighton’s is reported to be unethically represented by senior executives and company’s directors. The company’s executive’s directors Wal King and his successor David Stewart are despairs the effectiveness of corporate watchdog by bribing, corruption and window dressing the misappropriation of company’s funds. The media configures Leighton Company with allegation that the company executives prompt a multibillion-dollar scandal as well as threatening reputation of the Australian securities. Irrespective of the employee’s knowledge, executive encourages unethical code of conduct by not disclosing and regulating the unethical behavior in the company[OCF09]. This prompted employees to duck out in stress of the poor financial results resulting from bribery scandal of multibillion-dollar project for expansion of the company. Media articulation on the Leighton’s describes that the company’s top employees are responsible for unethical behaviors that consequent despair’s the company’s reputation in the eyes of the public and Australian Stock Exchange[Gre07]. The consequent unethical behaviors reported by the media describes the company operated on a deficit of $285.5 million resulting from scandal and bribery. The initiatives describes by the company’s annual report is reflected to have been window dressed to satisfy the shareholders. The media disclosures on Leighton’s breach of ethical code of conduct, the company shareholder initiated an internal review which redress the unethical senior staff by sacking and overhaul of senior management to improve its ethical standards. Impression resulting from media report from Leighton’s ethical code of conduct The newspaper articles describe a contradictory opinion on the company’s ethical code of conduct. The media alleges that the senior executives have majored on self-interest despairing ethical code of conduct by surpassing scandals on the company’s major project. The articulation provided by media team awaken the public and shareholders on the unethical behavior’s window dressed in the company’s annual report. The media report asserted unethical Leighton’s behavior with absence of court rulings on the allegation brought in attention on the public regarding unethical code of conduct capacitated by the senior executives[Dav06]. The analysis of media report in relation to the reported on Leighton’s deficit earnings of $285.5 million ensue a determine opinion on unethical behaviors leading to subsequent declines in earnings. Moreover, reported media report without the consent proved from courts describes the allegation is subject to prove, however the image of the company is altered in the public since the reported allegation is perceived[Ada08]. The conclusion from the court will aptly proof’s the image set in the public concerning the company’s reputation described by unethical behaviors configured by the senior executives. Conclusion on the Leighton’s ethical code of contact The Leighton’s company impressive report on the company’s ethical behavior is not in line with the company’s financial poor performances. Critical examination on the media report articulates that the company’s ethical information disclosed in the annual report is not viable. Without a court ruling on the company’s allegation, the media report disclosures on the Leighton’s ethical code of conduct accentuates that the repugnant impression indulges the reputational image. The supposition of media report aligns with the poor financial performances. Leighton’s ethical behaviors are enunciated to have been despaired by the senior executives as conveyed in the newsletter articles. References OCF09: , (O. C. Ferrell, 2009), Dav06: , (David M. Messick, 2006), Ada08: , (Adam, 2008), Gre07: , (Green, 2007), Ric13: , (Richard Baker, 2013), Ste06: , (Stevens, 2006), Read More