The Impact of CFOs’ Incentives and Earnings Management Ethics

 

 

 

Overview: For this journal task, you will consider how you, as the CEO/CFO of a publicly traded manufacturing firm, would mitigate the potential for serious corporate damage as a result of ethical or legal mismanagement

Prompt: First, read the article The Impact of CFOs’ Incentives and Earnings Management Ethics on Their Financial Reporting Decisions: The Mediating Role of Moral Disengagement, and then address the following:

Mitigation: How would you, as CEO/CFO of a publicly traded manufacturing firm, mitigate the potential for serious corporate damage due to ethical and/or legal issues? Explain.

Process: What kind of process would you build into operations, culture, policy, and procedures to make sure your firm will not experience any ethical or legal issues?

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