ETHICS and GOVERNANCE Kickbacks Question in textbook Chapter 2 page 61 Essay

ETHICS and GOVERNANCE Kickbacks Question in textbook Chapter 2 page 61 - Essay Example The code of conduct also requires protection of confidential information as well as intellectual property. It also requires the selection of suppliers depending on the business criteria and the adherence to all public reporting requirements. Corporate Compliance Programs for organizations help them in integrating their commitment to ethics and integrity into their day-to-day operations. The global teams of most organizations’ compliance areas ensure that their employees have procedures as well as training on the regulatory requirements that are related to their jobs. In so doing, it makes compliance an integral part of the organization’s everyday activities. The organization monitors and assesses compliance with regulatory requirements and it investigates each allegation related to noncompliance. In case any problems are detected, the management conducts root cause analysis of what has happened and it modifies internal controls to prevent any reoccurrences. They then track their report progress and compliance performance quarterly to their executive management team and the audit committee of their board of directors (Wulf, 2012, pg. 136). Almost all companies and organizations are supposed to prepare their financial statements depending on standards set by the Financial Accounting Standards Board (FASB). The standards set by FASB are generally principles-based. In the recent years, their have been debates on whether principle-based accounting is likely to be more efficient compared to the popular rule-based accounting. The debates have been in response to the popular accounting scandals such as the WorldCom and the Enron. The current way of accounting has faced a great deal of criticism and it therefore means that the stakeholders are supposed to do everything to ensure the situation is back to normal. Rules-based ethics in accounting basically has a list containing detailed rules that have