Assess the impact of ethical, regulatory, and tax considerations on financial policy decisions.

Ethical Behavior 

Activity Context 

This discussion helps you develop the skills to master the following course competencies: 

• Assess the impact of ethical, regulatory, and tax considerations on financial policy decisions. 

Activity Instruction 

Unfortunately, in recent times we have seen a number of examples of unethical behavior in organizations, often tied to the organization’s handling of finances. Locate a current Wall Street Journal article that discusses ethical issues facing the top leadership or financial managers in today’s corporate environment regarding their approach to the financial matters of the firm. Summarize the article. In addition, discuss what pressures exist that might encourage unethical behavior, particularly as it pertains to the firm’s financial reporting or situation. How might these be mitigated?

Support your post as appropriate with the theories presented in this week’s required reading. 

Readings  

Use your Corporate Finance: Core Principles and Applications textbook to read the following:
 
•Chapter 1, “Introduction to Corporate Finance.”  
•Chapter 2, “Financial Statements and Cash Flow.” 
•Chapter 3, “Financial Statements Analysis and Financial Models.”   

Use the University Library to read: 

•Droms, W. G., & Wright, J. O. (2015). Finance and accounting for nonfinancial managers. New York, NY: Basic Books: 

•Part III, Chapter 6, pages 80-119.

Your responses should be substantive and could involve one or more of the following:

• Debate the topic. 
• Ask a probing question. 
• Share an insight you gained from your peer’s post. 
• Make a suggestion. 
• Share a personal experience related to the topic. 
•     Expand on your peer’s post.

 Resources 
• Discussion Participation Scoring Guide. 
• The Wall Street Journal

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