Responding to Mathew

Responding to Mathew

Hello Mathew,

Great work with your post! However, I have a contrary opinion regarding a wrong policy implementation. I honestly think the firm’s management intended to incentivize the managers to reduce production costs by minimizing wastage. The employees were unwilling to implement real strategies to reduce costs. Instead, they preferred the easy way of overstating the budget to signal fictitious cost reductions (Needles, Powers, & Crosson, 2013). In addition to asking for a full report, I would recommend an external audit to obtain precise results. An internal audit exhibits loopholes as managers are more likely to collude with the auditors. I agree with you on workers acting unethically by issuing false reports. These kinds of reports portray a false image regarding a company’s financial performance, making it harder to implement corrective strategies. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.

Failing to offer bonus incentives for decreased spending in your company is beneficial for two reasons. One, workers would least likely overstate their budgets. Two, close variation does not warrant a bonus. I concur with you regarding recruiting ethical workers, as they would enable the organization to accomplish its goals. At the same time, firms must execute control in their operations to mitigate against unethical practices. Employees should be accountable for the expenditures incurred in their departments. From your quoted verse, “The Lord detests lying lips, but he delights in people who are trustworthy,” I think the phrase “detest” in this context indicates the need for punishment. Therefore, Joakim should be held accountable for his actions once proven guilty. His castigation would help counter his behaviors and act as a lesson to other employees in the organization.

References

Needles, B. E., Powers, M., & Crosson, S. V. (2013). Financial and managerial accounting. Nelson Education.

Version, K. J. (2017). Holy Bible. Arcturus Publishing Limited.

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Responding to Mathew

Please see attached. Respond to Mathew (post highlighted in grey).

I need help to respond to Mathew’s, a fellow student’s discussion post response about Ethical Dilemma: Ethical Considerations in Budgeting. I attached Mathew’s response. Thank you

Mathew

It almost seems like Joakim has inflated his budget in order to get a bonus. However, I do not know this based on the information supplied. Therefore, if I was part of the Budget Committee, I would require actual facts for the

Responding to Mathew

increase in budget. I feel like management hasn’t implemented a good policy, because they are incentivizing their employees to overestimate their budget, in order to get a bonus. This absolutely seems unethical, because they are ultimately lying for their own personal gain.

I currently work in the Finance department at my work and when we prepare budgets we have all department heads put in why their budget is going to increase. They have to be prepared and list out the expenses that they believe they are going to incur. We of course do not offer bonuses due to how close their budget variance is. However, it makes it easier for us to track our charitable spending and make sure that we are going to hit the IRS 5% payout requirement.

I believe it is important for management to make sure that they are hiring ethical employees and also holding their employees accountable. For example, the employees should have to explain why they’re off so much on budgets. They should incentivize their employees to hit their budgets. Proverbs 12:22 reads, “The Lord detests lying lips, but he delights in people who are trustworthy.” (NIV) This verse stands out to me when discussing this issue, because it really helps us understand the expectations God has for us. Also, it is a good foundation for how we should behave.