Mf Global Case

"Corporate Governance at IBM and Google" Please respond to the following:

* Discuss the ethical implications for companies to reduce employee salaries and benefits to remain competitive in the global economy.

In today' s competitive global economy, employees will definitely love to work within an organization that has high ethical values. Top management "must talk the talk and walk the walk" Values must be defined, leadership effectiveness clearly outlined, stake holder balance must be struck and a good process integrity in place. Clearly ethical issues will always arise especially regarding stakeholder balance. Employees will always want higher wages and increased benefits, Owners/investors a greater return, customers, high quality goods at lower prices, suppliers want to be paid more and so on and so forth. How this balance is achieved is of great importance here because once employees perceive how bottom line results are achieved and how they are achieved, this can persuade them to bend or even break rules in achieving them. " The ethical organization recognizes these tensions and works to maintain a balance between them. Focusing too much on any one stakeholder, whether owners/investors, customers or employees, will create a distortion that can lead to ethical lapses."

Reference

1. http://business.salary.com/assessing-the-ethical-company/

* Assume that you are an Accounting Professional (CPA) advising the senior management team of IBM. Advise the client on the legal requirements of paying employees for working overtime. Articulate what you would do if the client did not take the advice you offered.

As a CPA, I would advise my client to take a look at what the department of Labor says on overtime payment.

"An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days.

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