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Human Resource Management - Essay Example

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Log Entry 1 December 20, 2011 Late this evening, I’ve noted an article published in Reuter’s website. The article referred to the problems identified in regard to the audits that the multinational accounting firm, Deloitte, developed in 2010. Public Company Accounting Oversight Board (PCAOB) had reviewed the audits of the Deloitte for 2010 and it found that 26 out of the 58 audits developed by the firm during that year had problems (Lynch and Byrnes 2011)…
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Human Resource Management
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Download file to see previous pages Flanagan was the firm’s vice chairman in the corporate offices of Chicago (Blitstein 2008). According to the article, Flanagan, ‘repeatedly lied about his trading in annual written certifications’ (Blitstein 2008). I’ve made a research on the literature related to business ethics and came to the conclusion that employees in all firms need to follow the ethical rules set by their organization, as these rules are aligned with the laws regulating trade and commerce. In the specific case, Deloitte had failed in identifying early the violation of business ethics by its vice president; moreover, it seems that this failure has been a common phenomenon for the specific organization, meaning especially the problems in the firm’s audits in 2009 and 2010, as identified by the Public Company Accounting Oversight Board (PCAOB) (Lynch and Byrnes 2011). In accordance with Tittle (2000, p.67) ‘employees need to be loyal to their company’; however, this loyalty has limits. ...
It is implied that the activities of employees within organizations need to be lawful and that no violation of law in the context of business activity is permitted. In accordance with a survey developed in 1990, a high percentage of organizations, about 90%, tend to develop a corporate code of ethics (Trevino and Weaver 2003). In this context it would be expected that the phenomena of corporate fraud would be limited worldwide. The case of Deloitte, as of other well-known firms, such as Enron, revealed that the rules of corporate code of ethics are often ignored within modern organizations. I decided to explore all aspects of the Deloitte’s case, meaning its problems related to business ethics, in order to identify the failure of the organization to promote business ethics among its employees: was these failure related to specific employees or to the organization’s strategic framework? Log Entry 2 February 15, 2012 At a first point, Deloitte’s practices in regard to the control of fraud in the internal organizational environment can be considered as quite ineffective. In accordance with the firm’s website, the Board has a key role in ‘overseeing the organization and ensuring that it operates in the best interests of its shareholders’ (Deloitte, The role of the board, 2012). It is further explained, that the Board has the power to develop a regular control on the firm’s value drivers and set the firm’s targets, including the systems required for ‘monitoring managers’ accountability’ (Deloitte, The role of the board, 2012); the above powers are part of the Board’s responsibility to check the level at which the corporate governance rule are applied (Deloitte, The role of the board, 2012). In other words, the firm’s Board is primarily ...Download file to see next pagesRead More
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