Corporate Governance & Ethics Course Case Study Example | Topics and Well Written Essays - 750 words

Corporate Governance & Ethics Course - Case Study Example This obsession made Bernie encourage managers to push a rise in revenue realization of the company; the manager gave less consideration to whether capital investments would overshadow the short-term returns from the projects of the company. As business operations deteriorated in the 1st quarter of the year 2000, the company’s revenue also declined thus affecting the already set E/R ratio. CFO Sullivan applied the following accounting tactics to achieve the desired performance of the organization: 2. Expense capitalization: Sullivan formulated an excellent getaway plan where he began identifying current expenditures of surplus network capacity as longterm expenditure rather than current expenses. Earnings management is approaches applied by the manager of a particular organization to intentionally alter the company's earnings so that the end result matches a pre-determined objective against the reality. This exercise is conceded out for the resolution of income smoothing. Instead of having a prolonged period of high earnings which may later be followed by a poor performance of the company the management may choose to try to keep the figures relatively stable by adding and removing cash from reserves. This will show how, over a certain period, the company has performed. Abusive or fraudulent reporting is considered by the S&EC to be "a substantial and deliberate distortion of financial results". In the event of income smoothing becoming extreme, the Securities & Exchange Commission may issue fines against the organization. The internal audit department was supervised by Cynthia Copper; the internal audit department was expected to report directly to Sullivan. Struggles by Cooper to obtain more information concerning WorldCom’s capital expenditure and accruals were with no success. Andersen’s the external auditor was offered restricted access to the bookkeeping records.  

Describe how you would motivate members of the organization to adapt Research Proposal

Describe how you would motivate members of the organization to adapt and accept continuous change - Research Proposal Example In order to unfreeze these prevailing norms, or the status quo, overcoming resistance among individuals and conformity among groups is crucial. In Lewin’s model, the shift to a desired state can be done by one of the three: lowering the restraining forces to change; increasing the driving forces to get into the desired state; or both. The change in leadership entails a new vision. And in order to carry out this vision, there are specific steps the new leadership lays out which will be the cause of individual resistances within the corporation. The first alternative is to increase the driving forces. Driving forces usually come in the form of incentive, for employees to accept and comply to change. It may assume other forms, but driving forces are the usual motivating forces behind the transition. Another alternative is to decrease the restraining forces to change. As change prompts uncertainty, people tend to protect their interests and resort into power struggles. By eliminating these sorts of restraining forces in the form of employee counseling, seminars and educational programs, forces that hinder change due to individual resistance can be neutralized. In the extreme cases where the resistance is high, status quo can be unfreezed by combining the two approaches: eliminating the restraining forces, and increasing the driving forces. In this way, the incentive to accept change plus measures to lower down the resistance among employees will work in order to unfreeze the status quo. When the status quo is unfreezed, and employees are set for the change that is to happen within the company, the new leadership can enact the changes. When new leadership entails new vision for the company, the changes that may come can include changes in the corporate objectives, thus there will be changes in corporate strategies. These changes in strategies usually require changes in organizational structure and a change in the