Name: Christine Eunice C.

Raymonde Date: February 26, 2022

Subject: Accounting Prac 1

Common Ethical Issues of a Company

1. Discrimination
Discrimination is one of the most serious ethical issue that the companies faced
nowadays. It is the unfair treatment to a person because of who they are or
because they possess certain characteristics such as race, gender age or sexual
orientation.

Example:
Adoubaker was an employee of Washtenaw County for 17 years. He was on his
way for promotion from bus driver to maintenance technician. In 2008 because of
simply refusing to start 5 minutes earlier before his shift began, he was fired for
insubordination. This caused Aboubaker to file a complaint because he thought
that the real reason for his termination is the discrimination and not
insubordination. He claimed that the management did not intervene when he
complained about the ethnic and racial discrimination he experiences at work.
He also said that he did not get the promotion instead it was to a candidate who
was less competent.

2. False Advertising
False Advertising is the use of untrue or false information or claims of their
property, products, and services in an advertisement in order to attract and
deceive the buyer to buy their products.

Example:
The Taco Bell seasoned beef. The beef was not really seasoned, but had oat
filler. This is a trick to attract customers, thinking that is a higher grade of beef
compare to other. In which, in reality it is not a higher quality of beef but just an
ordinary one with oat filler.

3. Quantity understatement or Short numbering

The provider gives the consumer with less than what was asked or paid for in this
unethical manner. When the thing being sold is in such a shape or packaged in
such a way that counting the goods would be difficult or unpleasant, short
numbering is usually utilized.
Example: I bought 1kl of fish in the market, when I went home I weigh the fish on
the weighing scale and I found out that the fish only weighs 900grams instead of
1kl/1000grams.

4. Sexual Harassment
Sexual harassment is defined as disrespectful, degrading, or threatening sexual
practices. It can happen to any person through online or in-person, place and
situation, it may be in the form of writing, verbal or physical. Anyone can be a
victim of sexual harassment.
 Example:
In Narvasa vs. Sanchez case, a municipal assessor was sued by the senior
bookkeeper for sexual harassment. The respondent delivered the victim notes
that said, "Gay, I like you," as well as text messages that read, "Ka date ko si
Mary Gay... ang tamis ng halik mo." and "Pauwi ka na ba sexy?" "Have a date
with me," "I slept and dreamed wonderful things about you," and "I slept and
dreamed nice things about you," among others. He would also whisper to the
victim, "Oy faultless, pumanaw ka met ditan," twice in a slow motion while
pinching her upper left arm near the shoulder. Furthermore, the respondent
attempted to kiss the victim during a school trip. The Supreme Court found the
respondent guilty of sexual harassment in this case.

5. Gift-giving and Bribery

Gift-giving is legal, bribery is illegal. Gift giving is showing gratitude or
appreciation to someone specially to family members and friends. Bribery is an
immoral act of giving something to a person to gain benefit because of
undesirable personal interest.

Example:
KBR Inc., is one of the world's major engineering and construction businesses.
According to the New York Times, the Department of Justice charged the
corporation with FCPA violations in 2008, including paying hundreds of millions
of dollars to Nigerian authorities to gain a natural gas plant development
contract. KBR and its CEO, Albert Jack Stanley, pleaded guilty and paid a total
of $402 million in fines and $177 million to the SEC. Beginning in 2012, Stanley
was sentenced to 2.5 years in jail.

6. Whistle blowing
When a person discloses knowledge about wrongdoing, such as corruption or
sexual harassment, it is referred to as whistleblowing. The individual is
frequently affiliated with the company, often as an employee, but also as a
supplier or a consumer. They become a whistleblower when they notice or
witness behavior or acts that they suspect are improper, unlawful, and they
disclose that suspicion as a whistleblowing concern.

Example:
JP Morgan Chase employee Alayne Fleischmann works as a securities attorney.
Fleischmann saw multiple and serious acts of securities fraud during her time at
the company. Fleischmann discovered that, despite her outstanding credentials,
she was unable to obtain work after taking action. JP Morgan Chase reached an
agreement with Fleischmann to keep the specifics of the fraud hidden, just as a
public lawsuit was about to make headlines. JP Morgan Chase paid Fleischman
$9 billion in a confidential settlement.

7. Money Laundering
Money laundering is a word that refers to the process by which fraudsters
conceal or clean their original ownership and control of proceeds of illegal
transactions for their own benefit by making the money appear to have come
from a legit source.
Example:
Wachovia is responsible for money laundering allowed drug gangs in Mexico to
launder about USD 390 billion through its offices, according to a report released
in 2010. Drug cartels smuggled drugs across the Mexican border using funds
earned from drug sales in the United States.