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Ethical Implication of Financial Manipulation

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57 views3 pages

Ethical Implication of Financial Manipulation

Books of great value and knowledge

Uploaded by

danieloyediran25
Copyright
© © All Rights Reserved
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Student’s Name

Professor’s Name

Course Number

28th February, 2024

Ethical Implications of Financial Manipulation: A Case Study on Harmony's Decision

The decision made by Harmony to falsify sales revenue statistics in the financial records

raises serious moral questions. Her actions are extremely dubious from an ethical standpoint

because they involve dishonesty, fraud, and disregard for the accuracy of economic reporting.

She is purposefully misleading stakeholders, including customers, regulators, and staff, who rely

on accurate financial information to make decisions, by inflating income sales. This goes against

the core principles of accounting processes, which include accountability, honesty, and

transparency.

The consequences of Harmony's actions could be severe and far-reaching. First and

foremost, the public's trust in the financial institution's financial statements is damaged by

financial information fraud, which also almost certainly has legal and regulatory repercussions,

including fines and even violent attacks against the organization and its representatives. It could

also hurt the financial institution's standing in the marketplace, impairing the credibility and

image of its emblem. Moreover, overstating sales to inflate overall performance statistics might

result in bad strategic choices and a false sense of security.

Furthermore, economic fraud carries inherent risks that can expose Harmony and the

financial institution to catastrophic consequences. These risks include detection by internal or

external auditors, whistleblowers, or regulatory authorities. Furthermore, continuing immoral


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conduct damages the company's ethical culture and sets a bad example, which will likely

encourage more of the same in the future.

In order to resolve this moral dilemma, Harmony should maintain her professional ethics

and adhere to the principles of truthfulness and openness in financial reporting. She should speak

candidly with high management and address the root causes of the branches' poor performance

rather than turning to dishonest tactics. Harmony can fulfill her obligations as a senior

accountant and maintain moral standards by seeking out opportunity solutions, such as enforcing

measures for overall performance development or reorganizing operations. Integrity and ethical

behavior are the key priorities when it comes to safeguarding the bank's brand and preserving

stakeholder satisfaction.
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Works Cited

Efendi, Jap, et al. "Ethical Challenges Regarding Earnings Management, Short Sellers, and Real

Activities Manipulation." Research on Professional Responsibility and Ethics in Accounting.

Vol. 25. Emerald Publishing Limited, 2023. 103-126.

Mutschmann, Martin, Tim Hasso, and Matthias Pelster. "Dark triad managerial personality and

financial reporting manipulation." Journal of Business Ethics (2021): 1-26.

Nguyen, Lan Anh, et al. "The likelihood of widespread accounting manipulation within an

emerging economy." Journal of Accounting in Emerging Economies 11.2 (2021): 312-339.

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