This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Ethics Case #1 (1) Stakeholders The primary stakeholders, employees and shareholders, along with customers and suppliers, will be adversely affected by the lower bottom line or net income that will result from the reporting of Kelly Corporations loss on equipment. The net income is important to investors as it represents the profit for the year attributable to the shareholders. Secondary stakeholders will be influenced by Kellys integrity to uphold the accepted accounting standards even when it has the ability to partial hide its losses on the income statement. This gives the overall market a more trusting relationship with the company and mitigates potential risk in investing. (2) Ethics Issue The integrity and honesty of Charlie can be evaluated by his decision of how to report the companys losses. While there are significant losses in the period, if the company and Charlie maintain their ethics to accurately report by accounting standards, investors will be less likely to...
View Full Document
This note was uploaded on 11/30/2011 for the course ACCT 311 taught by Professor Stanley during the Fall '08 term at Clemson.
- Fall '08