Leightons Ethics and Ethical Code of Conduct - Coursework Example

Leighton’s ethics and ethical code of conduct Name: Lecturer: Course name: Course code: Date: Reasons for non-disclosures of reputation in financial statement Company reputation is of chief importance since; it gives confident impression about the company and its performance. The financial statement of the business is always prepared on a hypothesis that the business is a going concern (Chalmers, 2009). The corporation are required to publish their yearly report that is in conformity with the general accepted accounting standards because, the prospective users of the financial statement such as the creditors, shareholders, as well as the investors, would wish to have the summary of the business performance. Reputation is not disclosed in financial company’s statement it value is not determinable. Valuation Reputation as assets cannot be valued or quantified completely since there is no worth that can be ascertained, and thus it cannot be incorporated in the financial statement of the business (Chalmers, 2009). An entities reputation is not included in the financial statement since, reputation is non-monetary item that authenticate not its insertion in the financial statement. The financial statement of a body is always prepared on a going concern postulation and thus the company will go on into a probable future. However, description and reporting of reputation is not disclosed in financial statement since it cannot be quantified. Leighton Company ethics and ethical behavior Director’s Compliance with the ethical code of conduct The directors of the company provide and assurance to the public of the company compliance ethical code of conduct. This disclosures by Leighton limited is a good indication that the company is observing ethical behavior in compliance with the requirements of ethical standards (John Doorley, 2007). The corporation makes sure that all directors reveal their attention at the occasion of their meeting and are required to keep this revelation up to date and those who have an argument of attention must not in attendance themselves from the board conference. This will help in ensuring that directors perform their duties in greatest excellent trust as well as putting the needs of the investors a first main concern. In regard, shareholder's disagreement with directors is minimized since; the directors of the company stick to the moral defend that has been in a position by the business. This is a tough sign that the company adheres to principles and corporate governance values. Enhancing training and induction on new company directors The company appreciates the significance of providing nonstop leadership to its personnel members in order to improve their knowledge of the corporation as well of the business in which the company operates. Throughout the year, the directors were provided with business trips both nearby entailing off-site preparation meeting and worldwide as branch of the continuing maturity arrangement (Wright, 2006). persistent training on existing directors ensures that the company’s directors are completely conscious of the present dealing tendency internationally and skills that must be relevant in the company in ensuring that the business is updated as well as that the company workers and pays for the exact overhaul in ensuring that the investor's wealth maximization is the major priorities. By doing so, the company is adhering to morals and principled behaviors Adhering requirements of international financial reporting standards. The company provides an impression of what to anticipate in the annual information as well as providing the corporate governance statement and the quantity to which such principles have been met by the corporation as far as corporate social responsibilities is of concern (Gerald Corey, 2007). The director's description provides justice of the payment to its workers in order to cheer inspiration at place of work as well as providing apt and brief annual account that is readily available to the shareholders and prospective investors. In this regard, the company will have complied with principled standards as well as the IASB and FASB reporting disclosures. The directors of the corporation provide and promise to the community of the company conformity with global economic coverage principles. This report provides that the company gives an account that is at no cost from substance misstatement and that the account gives a true and fair view of the company financial position as well as comply with Australian accounting standards and business directive (John Doorley, 2007). This disclosures by Leighton restricted is an excellent indication that the company is observing principled behavior in providing yearly statement to the community that is not misleading and depicts the business as a going concern which is available to clear its arrears as and when they fall due for payable. Consistent financial periods The company employs the uniform advance of providing their yearly information in order to make sure that investors to easy duty in making an evaluation in the organization of dissimilar reporting business as well as ensuring that bonus stated, and remunerated are fully accounted for. In this regard, the moral performance is adhering to the ethical code of conduct. The structure that Leighton used to encourage ethical behaviors Assurance of ethical decision making The annual report of the company depicts an ethical form of making decision as well as the responsible party who are involved in ethical decision-making (Wright, 2006). The business put into practice ethical-wide range pronouncement which concludes that desired ethical safeguard in the operation of the company is fully executed and strictly adhered to. Moreover, The company is observed as following the procedure of reporting the ethical guideline and consequently, it enhances ethical behaviors in that decision-making plans provides for continued improvement of ethical behavior as well as ethical decision making in the business. Provision of continuous induction to new directors and training existing directors The company ensures its employees are well motivated and are updated with the current economic condition as well as business situation in the current century. In this regard, the company provides continuous training in respect field of study and department, In this regard, the directors will make ethical decision-making as well as following ethical behavior laid down by the company (John Doorley, 2007). Organizational ethical code of conduct can only be achieved when the workers of the company are trained. Leighton limited ensures that all of the relevant department and staff are provided with continuous training. This is depicted in the annual report of the page 30.Continuos education to its staff will ensure that ethical behavior is fully adhered with and that managers make ethical decision in every aspect that the concern the company is relevant and material. Formation of Board of ethics committee The company in an effort ensuring that it fully adhere to ethical safeguards, as ensured that it has board committee in which their sole responsibility is to perform oversight on ethical standard that has already been executed by the company as well as ensuring that new and desired ethical safeguard is instituted in the business and ensured that is fully adhered by all workers of the company (Chalmers, 2009). As depicted in page 34 of the 2011 annual; report of Leighton limited, the board of committees has been established, and their main responsibility is to encourage the establishment and execution of ethical standard and also improving performance of ethical behaviors within the company. Impression of Leighton Company ethics and ethical behaviors The 2011 annual report on page 38 clarifies that the requirement of ethical safeguard, as well as the report on ethical traits and guiding principle, are published to the public since, The company is striving to ensure that it strictly adheres to ethical behavior by entire employees. This is depicted by the annual report 2011, in which the company portrays a detailed definition and impression of the ethical code of conduct that must both be fully adhered and well understood by its employees (Wright, 2006). It is eminent that the company ensures that the ethical board committee stresses on the fact that ethical standard is inevitable. The auditor’s report clarifies further in detail that the Leighton’s 2011 annual report depicts reliable financial information that can be fully be adhered and relied by potential users in making ethical investment decision, In this regard; guarantee provided by practitioners on the financial statements provide assurance that ethical measures adopted by Leighton’s on p encouraging ethical behaviors. It can thus be concluded that, the company fully adhere to ethical safeguards as observed from the annual report presentation, notes from directors, as well as the auditor's report on the relevance and reliability of the company's financial statement to the uses of the annual report, ,. Media reflection on Leighton limited ethical code of conduct It is eminent that Leighton limited is facing media allegation in that the company is accused of unethical behaviors that lead to a loss of $285.5 million consequential from scandal. The plans pronounced by the annual report is perceived to have altered to depict what is not so as to make the shareholder contented with report (John Doorley, 2007). The media pronouncement claims executed by Leighton’s directors has led to unethical behavior that affects the company’s reputation. This lead to internal review courtesy by the company shareholder in order to clearly find out the legitimacy of the transaction as well as the effect it has on the company’s future performance, The shareholders concluded on having an overhaul on the administration of the company in order to get rid of unfaithful senior directors who do not act with the main responsibilities of ensuring that shareholder's wealth is maximized. The media allegation against Leighton limited is at an alarming stage since it will affect the reputation of the company in that the company will be perceived as not following ethical decision making as well the administration of the company will be doubted investors as well as the existing shareholders (Gerald Corey, 2007). The company is accused of on enticement and the circumstances affect the business status, as well as its corporate governance. Impression on the media report The indictment is not based on the fact because; exposure connecting Leighton to agent party to smooth the progress of indenture with overseas national against UN consent caused an enormous response that may have an effect on the company’s reputation. This exposure is not reasonable as well as for it to be fulfilled as act of enticement, and thus the corporation defended itself against the accusation via an ASX statement and the media (Chalmers, 2009). The media conclude that the company’s directors are fully responsible for unethical decision they made since their unethical decision affects negatively the company’s reputation and performance as well. However, intense analysis of the media report unveils that the company report on ethics and ethical code of conduct is subject to falsehood information to satisfy shareholders on the company’s ethical performances. Conclusions drawn about the dependability of the disclosures about ethics in the Leighton Ltd 2011 annual report Single allegation that are responsible by individual who are found quality of the situation does not conclude a company as being unethical and not adhering to the acceptable ethical standards as far as ethical disclosure of the annual report is a concern. The media allegation pose a contradictory circumstance and thus their pronouncement cannot be fully reliable in concluding on the performance of the 2011 annual report of Leighton limited. However, the appropriate time to make a conclusion on the company performance is waiting on the final verdict from the court concerning the company allegation. Irrespective of the verdict by court, Leighton Company poor financial performances describes that the company executing are unethical in handling company’s issues. References Chalmers, K. &. (2009). Reputation costs: the impetus for voluntary derivative financial instrument reporting.. In Accounting, Organizations and Society (pp. 95-125.). Gerald Corey, M. S. (2007). Issues and Ethics in the Helping Professions. Cengage Learning. John Doorley, H. F. (2007). Reputation Management: The Key to Successful Public Relations and Corporate Communication. Taylor & Francis. Rachman, M. D. (2009). The methods used to implement an ethical code of conduct and employee attitudes. Journal of Business Ethics, 225-244. Wright, C. &. (2006). Institutional pressures, corporate reputation, and voluntary codes of conduct: an examination of the Equator Principles. Business and Society Review, 89-117. Read More