Running head: DELOITTE LLP

PAD 599 Week 6-Assignment

Name

Institution
DELOITTE LLP 1

PAD 599 Week 6-Assignment

Administrative Ethics

First item: this news item is titled, "Why Mark Zuckerberg's Senate hearing could mean

little for Facebook's privacy reform." I obtained it from

(https://www.publicintegrity.org/2018/04/10/21665/why-mark-zuckerbergs-senate-hearing-

could-mean-little-facebooks-privacy-reform). This news item was published on April 10, 2018.

It focuses on the analysis of the big lobbying and campaign investment of Facebook and the way

these factors can contribute towards shielding it from talk that concerns significant regulations.

This article grills into the issue of privacy of the Facebook users and the influence that this social

media giant has on interfering with the process of election. This questioning of Mark

Zuckerberg, the company's CEO, follows the finding that Facebook has found an entry of

brokers of power from Washington in massive numbers.

Therefore, if the assertions about the entry of these political elites into the operations of

the Social Media giant are true, the critics argue that it means that there is an end and death to

any talk that may seek to bring about the issue of significant regulations concerning the privacy

of social media users. This ordeal will not just be a subject of the Facebook company. It will cut

across the whole industry of social media.

The claims that a political consulting company, (Cambridge Analytica -it was associated

with the Campaign of President Donald Trump in the year 2016) accessed data of about 87

million Facebook user accounts are worrying. The implication of these claims is that there is no

any user of Facebook who is not under threat. The users are exposed to anyone who may seek to

manipulate the Facebook system at the expense of the privacy of the Facebook users. However,
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the more worrying fact is that Zuckerberg had not shown any interest in dealing with this

external influence that comes from the political class for purposes of fulfilling their own dreams.

The difficulty in bringing about changes results from the increased spending of this social

media giant on lobbying and campaign contributions. These contributions tend to make the

people in power of enacting laws on the privacy of the firms to assume a light stance against

such much-needed regulations. Further, the skeptics assert that it is difficult to come up with

privacy regulations that only apply to one company in a market that comprises of various

competitors. However, the absolute truth from the developments is that the Facebook users are

overly exposed to external influencers who might even use their data in wrong ways. This is

unethical on the side of the Facebook as a company. Therefore, the administration of Facebook

has failed regarding its responsibility towards the privacy of their customers.

My second item is titled, "Is Congress expanding credit for the poor or enabling high-

interest lenders?" (https://www.publicintegrity.org/2017/12/22/21441/congress-expanding-

credit-poor-or-enabling-high-interest-lenders). The publication of the item took place on

December 22, 2017. In the analysis of the item, the skeptics argue that assisting technology

firms in the financial sector may result in consequences that were not pre-meditated. The article

gives insight into some of the firms that have used fraudulent approaches when administering

credit services to their customers. In so doing, they violate the law plus the practices of banking.

Hence, they chose a deceptive approach in the administration of the credit services to their

customers. Consequently, they end up making exuberant interest rates, which are as high as six

hundred percent. Hence, this action tends to leave the customers of these credit firms into a

vicious cycle of debt life.

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As a result, there is a bill that has come to the Senate to try to regulate the unscrupulous

tendencies that the loan administrators tend to adopt in their need to swindle excess money from

their customers. The bill does this through preserving the ability of the federal agencies

regulating the partnerships of rent-a-bank. Further, it also seeks to make provision for expansion

of the credit that is more affordable to the communities that are underserved. However, there are

misconceptions about the bill that seeks to paint a bad picture of it in the public. This

misconception I the claim that the bill intends opening doors to loans that attract high rates of

interest. This untrue information to the public is absolutely unethical.

My third item of discussion is entitled, "Virginia officials keep title-loan records private."

(https://www.publicintegrity.org/2016/04/01/19500/virginia-officials-keep-title-loan-records-

private). The publication of this article took place on April 1, 2016. It is a summary of the ruling

by the commission, which led to a halt to the request for reports concerning the annual business

engagements by the financial institutions. The ruling asserted that the state law is ambiguous in

stating whether the corporations and people enjoy the same rights regarding financial

information protection. Consequently, the ruling allows the Virginia officials keep under wraps

the annual business reports by the auto-title loan companies. This ruling accords victory to the

lenders who have severally been oft-criticized. The interpretation of the state law is very clear as

it states that the human being is a "natural person" while a corporation is an "entity". Therefore,

the claim by the commission that the state law is ambiguous is a manifestation professional

dishonesty. Therefore, Barlaup, Iren Drønen, and Stuart, (2009) assert that the poor will feel the

effect of commission's unethical conduct at work.

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Leadership influences

Deloitte considers leadership as one of the priorities on the agenda of executives. They

operate on the basis of the fact that companies having a strong leadership structure tend to

outperform those organizations with weak leadership structure in the market (McAlister &

Ferrell, 2016). Therefore, the leadership of Deloitte LLP grounds itself in business insight and

evidence in addressing the complexity and change that faces its leaders. Hence, it employs

differentiated solutions when addressing critical leadership issues. These solutions have their

grounds in research and science and business strategy is their underpinning.

Deloitte LLP is involved in influencing the politics of the United States of America.

According to Federal Election Commission (FEC) and Internal Revenue Service (IRS), Deloitte

was involved in the campaign finance to a tune of $2, 424, 029 in the current election cycle. On

the other hand, the lobbying data released by the Senate Office of Public Records indicate that

Deloitte gave funds to a tune of $1, 940, 000 towards lobbying for the same election cycle

(McAlister & Ferrell, 2016).

Legal decisions

In the United States of America vs. Deloitte LLP, the government of the U.S.A compels

Deloitte LLP (an independent auditor of Dow Chemical Company) to produce three documents

that have a connection to the tax litigation that was going on between the government and Dow.

However, the court ruled that this was impossible. This ruling was due to the fact that the work-

product doctrine protected the three documents. Therefore, Deloitte could not disclose these

documents because the Deloitte memorandum was a preparation that meant to serve the prospect

of litigation with the Internal Revenue Service (Kaplan & Williams, 2012).
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In the Diane McCarron vs. Deloitte LLP and Healthcare & Affiliates, McCarron seeks

the reimbursement of health benefits that are administered out of the network from "the Plan"

which is under the regulation of Employee Retirement Income Security Act of 1974.

Strategies for consideration to administrative processes

Deloitte LLP has plans to reward the solid ethical behaviors. This is in the move to want

to promote ethics as a prominent Anchorage to its operations. The rewarding of solid ethical

behaviors tend to influence more masses to follow suit.

Deloitte LLP also has plans of conducting training its staff on ethical conduct. This

training will especially be to the new entrants into the workforce of Deloitte LLP. The training

will encompass introducing the employees to the code of conduct of the company. The training

will be a regular happening where different issues relating to ethical conduct will be put to

discussion in a wide manner.

Thirdly, the Deloitte LLP considers improving its work-life balance of its employees. It

has established that the employees tend to be at their best concerning various facets when they

regard a good sense of their work-life balance.

Recommendations for improvements to administrative processes

There are other ways that Deloitte LLP should consider incorporating into its operations.

These ways should serve to improve various parts of the Deloitte's operations. The areas that

these strategies will solidify include among others the administrative ethics, leadership

responsibility, and legal obligations. One major such strategy that Deloitte should consider

adopting is an ensuing example to its employees in its operations. Therefore, according to Altin,
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Singal, and Kara, (2011), this move will call upon the senior managerial to impact what the

company stands for regarding ethics, leadership, and legal conducts upon the junior employees

through exuding these principles in their way of operations.

Another strategy that is likely to prove to be imperative in the future of the Deloitte LLP

is the adoption of rationality in its decision-making process. This will mean that they have to

measure all factors arising in the matter at hand before making a viable decision. Hence, it

requires looking at both sides of the coin. It further requires some patience as one seeks to

establish the facts underlying the situation that is at hand. This strategy guarantees the right

decision since every important element is put to weighing scale before making a probable step.
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Reference

Altin, M., Singal, M., & Kara, D. (2011, January). Consumer decision components for medical

tourism: A stakeholder approach. In 16th Graduate Student Research Conference In

Hospitality and Tourism January (pp. 6-8).

Barlaup, K., Iren Drønen, H., & Stuart, I. (2009). Restoring trust in auditing: Ethical discernment

and the Adelphia scandal. Managerial Auditing Journal, 24(2), 183-203.

Freeman, R. E., & Ginena, K. (2015). Rethinking the purpose of the corporation: Challenges

from stakeholder theory. Notizie di Politeia, 31(117), 9-18.

Kaplan, S. E., & Williams, D. D. (2012). Do going concern audit reports protect auditors from

litigation? A simultaneous equations approach. The Accounting Review, 88(1), 199-232.

McAlister, D. T., & Ferrell, O. C. (2016). Corporate governance and ethical leadership.

In Business ethics: New challenges for business schools and corporate leaders (pp. 68-

93). Routledge.