In 150 words or more, tell how locus of control affects ethical behavior. Discuss an example you have witnessed in the workplace. The example can be a positive or a negative one, but be careful to not use names or other information that can get one into trouble.
What will be an ideal response?
Ans: Ethics refers to a system of moral rules or principles of behaviour which includes doing the right thing in the right approach. When there is an unethical act from the management, employees should not accept this ethical misconduct but instead stand up, take a stand in the face of ethical violation. The unethical requests from the superior should be complained and escalated to the higher management. They hold the right to whistle blow on unethical practices.
My company was engaging in earnings management in its revenue recognition practices. The Material revenue was booked by the company on the last day of the quarter; contracts were back dated with the goal to meet earnings expectations; multiple-element contracts were counted and accounted by them for as software license fee contracts; and a swap of software was counted and accounted for as a sale. This is unethical behaviors of the firm; and it is not only a forgery of the contracts however also a fraudulent activity of manipulation of the accounting documents. I decided to report the issue to the higher management. However when the unethical practices were brought to the notice of the leadership team about the conflict of interest, which was brought me as an auditor, instead of rectifying the situation, they preferred to avoid the situation. With this approach they disregarded the notion of conflict of interest and showed an unethical act from the management
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