unfulfilled holiday delivery promises by online shopping sites, employment opportunity fraud, scholarship scams, misleading advertising for health care products, data security, financial practices Food and Drug Administration (FDA) o Regulates food safety, human drugs, dietary supplements, vaccines, medical devices, cosmetics Laws Promoting Equity and Safety p.103 -105 Laws to promote equity in the workplace were passed during the 1960s and 1970s to protect the rights of minorities, women, older persons, and persons with disabilities Title VII of the Civil Rights Act (1964) specifically prohibits discrimination in employment on the basis of race, sex, religion, color, or national origin. Equal Employment Opportunity Commission o Was created by the Civil Rights Ac t to enforce the provisions of Title VII o Assists businesses in designing affirmative action programs Aim to increase job opportunities for women and minorities by analyzing the present pool of employees, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals, along w/ target dates for those goals Equal Pay Act (1963 ) mandates that women and men who do equal work must receive equal pay o Wage differences are allowed only if they can be attributed to seniority, performance, or qualifications Women earn an average of 77 to 82 cents for every dollar men earn African American women earn 64 cents for every dollar a white man earns Hispanic women earn 55 cents for every dollar a white man earns Americans w/ Disabilities Act (1990) prohibits discrimination against people with disabilities Occupational Safety and Health Act (1970) that mandates employers provide safe and healthy working conditions for all workers o Enforced by OSHA (Occupational Safety and Health Administration) which makes regular surprise inspections to ensure businesses maintain safe working environments Increased productivity (competitive pressures) has been cited as the main reason for the growing number of accidents in the workplace o Overworked employees are often cited as a primary factor in careless accidents Gatekeepers and Stakeholders p. 105 – 106 Trust is the glue that holds businesses and their stakeholders together. Trust creates confidence and helps to forge relationships of reliance between businesses and stakeholders Ethics creates the foundational trust between two parties in a transaction Gatekeepers are the overseers of business actions Gatekeepers Include o Accountants measure and disclose financial information, with an assurance of accuracy, to the public Make specific assumptions about their clients 1 st assumption is the corporation is an entity separate and distinct from its owners, and that it continues to operate as such in the future
2 nd assumption is a stable monetary system I in place and all necessary information concerning the business is available and presented in an understandable manner If there is a choice in between equally acceptable accounting methods, they should use the one least likely to overstate or misdirect (most accurate) Some accountants have not adhered to their responsibilities to stakeholders o Risk Assessors Top 3 companies in the world that independently asses financial risks are
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