If I was employed as an accountant for and Innovative Computing Company and my
organization was getting ready to sign a contract in which I knew the company had
some faults, I would most definitely found a way to inform my employer. First and
foremost its not right that my friend speak on or about the hardships in which the
company he works for may have. Its unethical and I'm sure they may have had him
some type of contract regarding confidentiality. The fact that I would know key
information that can hinder the financial growth of my company is my duty to speak
on it knowing that we may be signing a contract. As an accountant I would just state
that a source stated there were some issue with the firm paying bills and before we
commit ourselves to this company we should investigate and do more research on the
company before we made our final decision to sign. Withholding information knowing
from my company could result in my termination or the downfall of my organization.
When it comes to representing a company, ethics plays a major part in the choices
we make as representatives of our company. With that being said, I believe that it
would be unethical for my friend to speak on the downfalls of their company,
especially if they don't know the full details of what may be going on that's causing
these bill issues. However, if my friend gave me information and because I became
aware of this possible downfall, it would be ethical to explain what I did hear and
also explain the background of how I am not too found of how true it is while
bringing it to my companies attention. I would not make it a rumor and I would
report it to the most important responsible party such a management and keep it
confidential rather than telling everyone in the company. The reason I feel it would
be ethical to bring up the concerns is because as an employee in my company, it
would be of my best concerns to make sure I am considering decisions based on the
success of the company. Withholding such a rumor could cause major financial issues
if the information could possibly be accurate. Therefor I would leave it up to
management to further investigate the information that was brought to my attention.
Most of the time when a larger company buys out or merges a smaller company,
these companies are usually in a bad financial situation. It is important to report
anything that you might find suspicious or if you feel that your employer should be
aware of the information. Even though it can be tricky it is a hear say in away.
Things are said within companies as they are being bought or merged with others as
to why this is happening. I would mention it to my employer. But I would let them
know that it was something that I heard and not sure if it was 100% true. But that
I felt that they should be aware of this issue. I would hope that my company has an
ethics and compliance code that would protect me when reporting such concerns, in
hopes for no retaliation against myself. I would also make sure that I did some
research on this before I brought to them that way I would have some kind of proof
and evidence to back me up. And just not a word of mouth. I currently work for a
large healthcare company which has a global presence and takes on smaller healthcare
companies as mergers or buys out smaller companies so I am somewhat familiar with
this situation. Most times when we buy out smaller companies, they are in a bad
financial situation to begin with though. It's important though to report anything you
might find suspicious or something you feel your employer should know. If a company
is signing on another company under contract and are unaware of the financial
situation that other company is in, it's important they listen to any concerns reported.
Most companies have an ethics and compliance code as well that protects employees
reporting anything including any concerns with company mergers or signed on
contracts are protected so they aren't retaliated against. It's important that employee's
feel comfortable to report any concerns such as financial concerns as that is the right
thing to do. However, when making any reports of financial issues, it's important to
also back up your claim with evidence. Any reports made of financial concerns with
company mergers/signed contracts should also be taken deeply into consideration by
the company. If I was employed with Innovative Computing and had some insight
into the financial struggles of a company that my employer was signing, I feel that
it would be best to inform my employer of my knowledge. I feel that the company
should have faithful representation as governed by GAAP. If the other company did
not disclose their bookkeeping or provided false information, it could seriously impact
my employer. In earlier years, I would like to stay in the background, where I found
it safe and I would have kept the information to myself. But now, if I felt as if I
was truly part of the company and team, I would want to make sure they have all
the information available. I would do my own research into the matter to be able to
present evidence to my employer about the other company's financials. I would then
inform them of my financial recommendation to move forward or back out of the
contract. I may even include some possible replacements that we could look into for
companies that are more forthcoming about their financial records. On one side, my
loyalty to the well-being of the company would make me want to report it to my
employer. However, I would absolutely do research beforehand to present as supporting
evidence. No company I have ever worked for would ever make a decision off
hearsay, and would want some sort of evidence to act upon. I would never want the
company to fail due to my failure to act when I could have prevented its downfall.On
the other side, I'm in no position to be making decisions of any kind. I would trust
that my employer(s) had already done their due diligence before stepping into any
kind of contract, regardless of the size. I would not want to overstep and have my
employers think that I'm "too big for my breeches" as they say. Reporting something
like this to my employer could backfire and actually cause distrust between me and
my employer. I would like to include integrity and ethics as a combination of the
two so to speak. It is my opinion you can’t be one without the other. Integrity
displays in a person to have professional substance within it themselves. A person
who displays honesty, who has morals, a person who is honest. Without integrity you
cannot facilitate oneself ethically.In this scenario, I would report this information to
the organization I work for. Having this knowledge that this company is having
financial trouble could soon cause financial trouble for the organization I work for.
The principal in the idea that everyone with in an organization is expected to take
pride in contributing to the financial safety for the organization. With the
understanding that I am confident my employer will do their own homework by ensure
they have obtain financial supportive documentation proving their financial stability,
insured status to protect potential lost, and accounting processes. Ethically I would
report the findings to my employers once I looked further into the matter and had
evidence to back up my claim. Further research would need to be conducted. I would
request to see their financial statements. Ultimately it would be up to the higher ups
if they decide to move forward with the company on the possible verge of bankruptcy.
I would want my employers to go in aware of all situations. The outcome could
affect our company and jobs and that is something I would not be willing to risk.
Financial accounting focuses on the needs of external users. Generally accepted
accounting, principles (GAAP) wants information to have relevance and faithful
representation. I see the company they are trying to hire for services more of a
liability then an asset. I can see them over charging for services, quality of work low,
lack of employees, prolonged end dates, and the company closing before services are
met. These factors can lead to financial risks, and loss of customers. Know who you
are getting in business with because their problems can become your problems. As an
employee, I should report the matter to the employer before signing the contract to
avoid any risk of lack of payment. Signing a contract requires individuals to disclose
any information that may put the company at risk. Failure to reveal all relevant
materials to the contract agreement by the supplier will be considered unethical in
supply and purchasing management that fails to support proper guidance of the
business's practices (Guarnieri & Trojan, 2019). Therefore, reporting the matter will be
essential in deciding whether to trust the supplier in supplying the component now
that the concern of having trouble paying bills means that they might not be able to
make payment.
Similarly, the contract provides obligations to both parties, and engaging in a firm
with financial issues may be disadvantageous to the company's revenues. Ensuring that
the employer comprehends the financial risk associated with the contract may help
minimize uncollectible debts in the future. Besides, it will save the firm from
withdrawing late in the agreement, which may have legal implications. Since the
company deals with electronics, putting it at such risk may mean lack of supply,
resulting in the loss of customers, thus future liquidation. "The Full Disclosure
Principle states that all relevant and necessary information for the understanding of a
company’s financial statements must be included in public company filings. For
example, financial analysts who read financial statements need to know what inventory
valuation method has been used, if there have been any significant write-downs, how
depreciation is being calculated, and other critical information for the understanding of
the financial statements." (CFI, 2020).
I think if anyone would be getting in trouble because of releasing this information it
would be the friend that works at the electronics components supplier. She could
probably get in to a lot of trouble by telling friends financial matters of the
company.It seems, however, like Innovative Computing would have already covered all
of their bases before ever even deciding on the deal. I would expect the company to
know all about who they were doing business before ever entering into a big contract
with them. I think this question could really go left or right. You have to be careful
when it comes to passing on information because for one you always want to make
sure that any other information you are giving when it comes to a business you
always want to make sure it is accurate. I also think that it depends on your role in
that business. You never want to over step or cross certain boundaries. On another
note the friend could get in trouble as well because he has shared information about
his company that I am sure was confidential. Some things you just have to let ride
out or let it come to the light on its on because I am sure whomever is at the top
of the pyramid when eventually find out this information or hopefully dig more into
the business they are having dealings with. Personally, I wouldn't share information
like this because who knows, that friend could be giving out the wrong information
and I don't want to be that person that interrupts a deal in general or with the wrong
information. Spreading rumors is not a good way to really run anything in your life.
However with that said, I also agree with those who would tell but would say that
if you do tell you boss about this, that you preface it that it is a rumor and you
don't have solid facts. This then gives them the option to research further. If the
question is correct and this is a very large account, it could hurt your company in a
significant way and hopefully their own research would pan out, but I feel like you
can avoid issues of spreading rumors if you talk to your management in a specific
manner. I don't know of any companies who will make a decision on this size of an
account based off of hearsay, but it may cause them to do a little bit more research
and that isn't a bad thing either. When signing myself up for a job it is a
responsibility to take the role of my employer and do my best at doing my job.
Whether it is with a company you have a future to grow in or just a school job you
should be the employee you wish you had for our own business, someone reliable
and trustworthy. If I worked for a company which wanted to start a business with
another company I had connections with and knew that the company was not the best
with making their payments I would definitely share that information with my
employer so that they could make the best decision in their professional opinion. If I
were to with hold that information it could affect my job in the future being my
company losing money with the Company known to not make their payments. As an
account of the company, I have an obligation to report any information I have with
any business deals, regardless who it is with. However, if I cannot gather any physical
evidence to back up my claim, it would not be a good business move or career move
to report what I may know. b As an account, my reputation is my career. If I spread
a rumor that cancels a contract and I am wrong; I could lose my job and would
probably struggle to find another good job. I would use what I know as a reason to
take a deeper look into the company’s financial statements. I would look back several
years’ worth of financial statement to determine a pattern and confidentially make a
judgement on whether I think the company will pay us on time or at all. When I
present my findings to my supervisor/management I would let them know I had a
reason to be concern that the company may struggles with paying their bills. Then go
into my evidence that proves my claim or ease any concern that they may have about
the company paying their bills. I think that as an employee it is always a good thing
to be transparent in your business dealings. In this case I would let my friend know
that on a business level my company is inconsistent with satisfying outstanding debt.
I would also convey to my friend that whatever happens it solely a business deal and
that our friendship won't be affected by the decisions being made on a higher level.
I believe that the choice being made after transparency is showed then that falls on
the potential business partner. We must remain honest in all business transactions
because it shows that the company despite its past can become one that people trust
and enjoy doing business with. It also sends a positive message if the problems are
corrected, that conducting business with honesty can be good. There are many
companies out here especially the big ones that use their name to promote goods and
services but aren't dealing fair and that's the main issue. If I'm in a position to mend
a volatile situation while securing future business then I would do it. The reason you
should not report this to your employer is because technically your friend was not
suppose to disclose that information and could get into big trouble because that could
cause her company to lose the contract with your employer. The reason you should
tell your employer before the purchase is because you don't want them to get into a
bind. That is very important information received from an inside source that could
greatly help your employer before getting into a contract that they can't get out of.
This would be a tricky situation because its like you want to tell your employer but
you don't want your friend to get into trouble with her employer. If it was me I
think I would just stay out of it and let the employer handle it. I am interested to
know how others would handle this situation whether they will either tell their
employees or not tell them. This was a very interesting discussion question I look
forward to reading other responses. it is my responsibility to pass along any
information I acquire that could potentially prevent my company from making a
mistake or could be an advantage to us during the sell. There issue could be a minor
cash flow problem, but due to this information my company may be able to take a
closer look at the finances of the company. There is the potential of acquiring the
company at a cheaper price or negotiating other advantages to the purchase. I do not
believe you can place a price on the value of information and however it is acquired
within legal means is valuable to me. In reviewing this situation, I find it hard to
discover any reason why I would not provide my company the information. It might
be stated I am betraying the confidence a friend has placed in me by providing the
information to my company, but I feel by suggesting we take a deeper look into the
company’s financials I am not providing the source of the information or what was
exactly was provided to me. Information is key in these types of decisions and I
would always look to others who I work for on advice in this type of situation as
well as even if things are okay, it is your responsibility as an employee of a company
to protect the assets of that company, so if you see something wrong even if you
don't know for sure, it is your responsibility to at least let your manager know and
then it is there responsibility to make the next move. There are two ways of looking
at this. The ethical way in my opinion would be to not disclose any information to
your employer that was provided to you by a friend on a personal level as that is
not an official indictment on the electronics components supplier and it does not prove
they will not be complying with their end of the deal. In addition to that, it could
create a tough situation for your friend at his job for disclosing private company
information and potentially killing a lucrative deal for them. The other side of the
coin and I do believe it's the one that most people would go with, is the emotional
one which would be to immediately go tell your boss about your findings. I see this
as more of a "career-driven move" as that might be an opportunity to show that you
care about the company you work for and that you are looking out for the company's
best interest which in turn increases the chances of eventually get a promotion or
bump. At the end of the day, most people will do what benefits them. I think that
with the knowledge of the company having issues paying their bills, you should let
the company know. It would a smart decision to let Innovative Computing know
because that could help them make a better decision and more research into the
company, they are looking at doing business with. With the other company having
some issues paying their bills, could affect Innovative Computing business. Innovative
Computing needs to be careful because of they sign the contact and the other company
missing some payments it could slow up their operation. You employer can also go
through and check financials of the other business and discuss there concerns if there
are any miss payments or not looking finically stable. By letting your employer know
this could give them another opportunity, to look for another supplier that could be
more finical sound. Innovative Computing does not want the other company’s lack of
cash flow and revenue slow down the growth of there business. Your employer should
proceed with caution if your friend might be correct on some of the bills they were
having trouble paying. I think that you should report what you know to your
employer. You should have a responsibility to the company you work for to report
any information you know that could potentially be harmful to the company. When
companies make negligent financial decisions, all employees are affected by the
consequences of their decisions. If an employee withholds detrimental information to
the company, they work for that shows a lack of loyalty and integrity to them. In
the long-term remaining employed and you know that you withheld important
information that could cause the company to lose financially you may begin to feel
ashamed and unworthy of your position with the company. One may feel that knowing
certain information and withholding it from others is not a big deal because of not
wanting to spread negative information, but you have a duty to be forthright with
important information that is factual and silent with gossip. Personal integrity with
concerned work ethics are key character traits many companies are looking for in their
employees because showing loyalty to your employer is highly recommended and
appreciated. At times the employer depends on loyal employees to help with decision
making because the majority of the time employees are their eyes and the ears . It’s
about taking ownership to see something, hear something, know something then say
or do something.
