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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. 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.
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