The Ethical Case Faced By Troy Normand Case Study Samples
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The business enterprises emphasize more on the Ethics of their employees. The ethical measures undertaken are instructions to guide workers. Ethics in Accounting is a moral principle that defines wrong or right in a business. Ethical dilemmas face most companies that in most times hinder the rightful operations of an enterprise. An ethical dilemma is a situation in which an employee tests the moral code by making a contradicting decision. The significance of an Ethical Code is to guide employees from going astray during their work, for instance, avoiding cases of fraud. Similarly to other professions, accountants face a lot of ethical dilemmas which test their professionalism. Most of the ethical dilemmas are complex and not easily resolved, and thus force the Accountants to restrain from the noble morals that guide them (Harmantzis, 41).
According to Troy Normand’s case, he is facing an ethical issue of making dubious entries in order to meet the projected earnings forecasts. The dubious entries made by the accountants in WorldCom led to a loss of over $11billion and thus causing the worst bankruptcy USA has ever faced in the years. The attempt of suing the concerned members in the ethical dilemma would have saved the company. With a course of action taken by the stakeholders involved in the WorldCom case, an estimated increase in the business’s profit could be an ideal expectation (Harmantzis, 49). A positive trade off for the company could be attained though it could mark the beginning of efficient work for the employees.
Given the fact that Troy Normand pleaded guilty, his act was improper. It was certainly hard for him to make the right decisions. The situation should have been handled amicably as a manager; Troy Normand should have informed the concerned authority about the meeting. The meeting settled by Mr. Sullivan and Mr. Bernard Ebbers was not legal because no accounting justifications were given to Mr. Troy (Sadka 108). In this situation, Troy Normand took a decision to justify the entries without reflecting on what could happen. In conclusion, the primary stakeholders in WorldCom case include; Troy Normand as the manager of the company, employees, presents stakeholders and Creditors of the enterprise. All the members would face years of a sentence in prison if they found guilty of fraud.
Harmantzis, Fotios C. "Inside the Telecom Crash: Bankruptcies, Fallacies and Scandals - A Closer Look at the WorldCom Case." SSRN Electronic Journal (2004): n. pag. Print.
Sadka, Gil. "The Economic Consequences of Accounting Fraud in Product Markets: Theory and a Case from the U.S. Telecommunications Industry (WorldCom)." American Law and Economics Review (2006): n. pags. Print.
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