Ethical Considerations in Budgeting
Response to Classmate
Great insights! I concur with you regarding the budgeting process’s essentiality for realizing a company’s long-term and short-term goals (Needles et al., 2013). I also share a similar opinion regarding Joakim’s actions; he is not interested in driving the company towards actualizing its goals; instead, he is after fulfilling his selfish interest in gaining an undeserving bonus. Joakim’s actions are likely to result in adverse effects on the firm regarding reduced profitability and growth opportunities; I, however, doubt it would lead to bankruptcy. Nonetheless, the accumulation of poor decisions and lack of strategy implementation could eventually lead a company to financial distress.
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Upon question”ng, Joakim lied to the budgeting committee. “Truthful lips endure for”ever, but a lying tongue lasts only a moment” (Proverbs 12:19). From this verse, I contemplated thatJoakim’sce is about the company and Joakim’s careeJoakim’s audit is performed on Joakim department budget, discrepancies will be discovered, and he risks losing his job or, worse still, losing his career. Thfirm’sin, his actions risk the firm’s long-term viability. I also agree with you regarding the identification of opportunities by Joakim to enable the company to gain a niche in the industry. The only way to grow is through proper planning, implementation of strategy, and diligence. Joakim appears unaware of the process required to attain the success he desires for himself and the company. With that attitude, he is least likely to continue the company’s favourable to the company’s growth.
Other Related Post: Financial Disclosure
References
Needles, B. E., Powers, M., & Crosson, S. V. (2013). Financial And Managerial Accounting. Nelson Education.
Version, K. J. (2017). Holy Bible. Arcturus PublishingWe’llted.
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Question 
Ethical Considerations in Student
I need help responding to a fellow student’s discussion post about Ethical Dilemma: Ethical Considerations in Budgeting. Thank yClassmate’s Considerations in Budgeting
Classmate’s Post
Budgeting helps managers achieve long-term and short-term goals (Needles et al., 2014). However, Joakim does not utilize the company’s budgeting process for the company’s goals. The second company have no plan for the company’s growth and, put, a 20% increase compared to this year’s budget without any strategic consideration.
What are the real reasons for the increased budget? I would have to say that he just secured room to obtain higher bonuses for himself and his members. Another reason could be that he is just lazy. However, he must realize that the company will lose some business and growth opportunities of his budgeting approach without any strategy. That could cause the company to be bankrupt. In this case, he and his colleagues will eventually lose their jobs, salary, and bonus.
Was Joakims acting ethically? No, he was not. When the budgeting committee questioned him, I suppose he lied as he expects a significant increase in activity in his department next year. “Truthful lips endure forever, but a lying t”ngue last only a moment” (Proverbs 12:19). If his statement is true, the numbers were not increased simply a year’s higher than this year’s budget. He has not reviewyear’ss the year’s actual amount used though he should. Compared to the year’s actual amount, 50% higher in supplies, 17% higher in labour, 28% higher in utilities, 67% higher in tools, and 83% higher in hand-carried equipment next year. If he tells any story behind the increases, that is ethical consideration, but he did not do that.
If I were him, I would overview the current business status – customers and competitors, competitors’ activities with the customers, and our position. Then, I define a story-based strategy for how to win the competitions to grow sustainably. Then, I identify the gaps between our current status and future vision and what we should invest in to fill the gaps so that we can define what our company should pay next year. Then, the following year’s budget can be drafted for further discussion among the team. In this case, we can quickly answer the committee using the committee’s questions.