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 in a journal assignment:
- 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?
Be sure to consider the effectiveness and efficiency of your solutions. You might also consider any cost-benefit analysis that might be of interest. Reference the textbook and the article to support your answers.
For additional details, please refer to the Module One Journal Guidelines and Rubric document.