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Ethics Cases(1)

Ethics Cases(1) - Ethics Case#1(1 Stakeholders The primary...

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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 Corporation’s 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 Kelly’s 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 company’s 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...
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