Please discuss fully under what conditions it would be acceptable for a company to engage in...
Please discuss fully under what conditions it would be acceptable for a company to engage in an unethical manner in order to meet the quarterly earnings projections set forth by security analysts.
Homework Answers
Conditions under which a company would act unethically:
- Excess pressure from the competitors: when the competitor’s performances are very good that they have maximum market share & the company’s market share & profit have been reducing then the company would be forced to act unethically to increase its earnings.
- Company’s philosophy: the company would be having a philosophy to engage in unethical practices to a certain extent & it has been doing so all these years through which it has grown to this much extent from the time of its establishment.
- Management’s pressure on its employees: the employees may act unethically as a result of pressure from the top management to achieve both company & personal goals.
- Environmental situation: the company might be in such a situation where there would be situations like poor financial condition & the company is in a situation of going bankrupt etc. to manage all these situations it might act unethically to improve their financial health.
- Other reasons: other reason would be pressure from external parties like debtors, suppliers etc., increase in taxes, rising costs for running the business etc.who might demand their compensation from the company for their services
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