CEOs and business professionals

Several years have passed, since CEOs and business professionals have been trying to produce a single and the most relevant answer regarding the issues regarding ethical and unethical conduct in large and small corporations. The case of Enron seems to have resolved the major ethical uncertainty, and has proved the need to promote sound ethical atmosphere and ethical principles in accounting and financial decision-making; and while firms and health care organizations were seeking the means to improve their ethical codes, the Sarbanes-Oxley Act has come as the urgent response to the ethical failures in corporate America.

Nevertheless, healthcare facilities across America remain extremely vulnerable to the major ethical controversies and frequently find it impossible to resolve them in ways that would benefit both them and the patients. In her article, Marriane M. Jennings (2003) writes about the role, which ethics plays in leading business giants to financial failure. She examines the tragic experiences of Enron, WorldCom, Tyco International, FINOVA and HealthSouth Corp.

Jennings (2003) is confident that the three essential factors need to be analyzed, before we are able to evaluate the scope and the consequences of an ethical failure and its impact on financial decision-making in firms: first, the systemic failures which ultimately reach the levels of fraudulent financial reporting; second, the common traits of ethical collapse; and third, the ways these collapses can be prevented in future through ethics and valued-based decision-making (Jennings, 2003).

In each of the recent corporate scandals, the six essential elements had to fail: accountants, auditors, the board, the business analysts, the business press, and the investors’ minds (Jennings, 2003), but beyond that, Jennings (2003) underlines the four common traits of ethical collapse that lead to fraudulent financial decision-making – pressure to maintain numbers; fear and silence; inexperienced senior management team; and a culture of social responsibility.

As a result of the detailed analysis, readers are offered an insight into the complex (or even complicated) picture of an unethical conduct that starts from below and leads to higher levels of organizational performance, where financial decisions are usually taken. Does that mean that there is not a single chance to improve the situation? Certainly, that does not. The Sarbanes-Oxley Act has been designed to facilitate the development of sound ethical policies in all organizations, including healthcare entities.

Besides the need to set and implement Public Accounting Oversight Bodies, the Act is expected to create “a tone at the top’ that promotes ethical conduct and permeates the corporate culture” (Koestenbaum, 2005). In healthcare, where the effectiveness of medical services largely depends on the quality of all accounting procedures, ethics is of particular importance. One of the hospitals I used to work for tended to over rationalize its commitment to profitability.

In other words, the senior management lacked an insight into the major financial decisions that were taken in the hospital. Jennings (2003) confirms that “most failed companies continued their activities rationalizing their conduct with such trite sayings as “that’s the way they do it”; in other words, failed organizations tend to take the examples of other fraudulent corporations without being able to learn from them.

I believe that rationalization may be an appropriate approach to accounting, but in hospitals where the lives of patients depend on whether we are able to use our financial resources effectively, over rationalization is not always the best solution. The visible commitment to patients’ welfare does not also mean that the hospital’s financial reports are accurate; that is why hospitals and healthcare facilities should be particularly responsible towards the ethical standards of their financial conduct.

In this situation, the best the hospital can do is to review the impact of its overrationalized decisions on the quality of financial reporting. Financial reporting should go in line with the moral absolutes, which hospitals and healthcare facilities determine prior to making strategic decisions. These simple ideas will always work to prevent healthcare organizations from major financial failures. Conclusion Ethics is one of the pillars on which high quality medical care rests.

Ethics in accounting and financial decision-making is one of the critical components of quality medical care. Despite the growing healthcare facilities’ commitment to ethical conduct, they tend to overrationalize the role of profitability and replace the need for accurate financial reporting with the need to care for patients’ welfare. In this situation, and prior to taking strategic decisions, hospitals and healthcare organizations should develop a set of moral absolutes, which will govern them in their striving to promote ethical conduct in accounting and financial decision-making.


Jennings, M. M. (2003). The critical role of ethics: recent history has shown that when individual ethics are compromised, corporate ethics fail and financial disaster is not far behind. Internal Auditor. Retrieved February 21, 2009 from http://findarticles. com/p/articles/mi_m4153/is_6_60/ai_111737942 Koestenbaum, P. (2005). Integrating Sarbanes-Oxley, leadership, and ethics. The CPA Journal. Retrieved February 21, 2009 from http://www. nysscpa. org/cpajournal/2005/405/perspectives/p13. htm

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
excellent job made a 93
Customer 452773, March 22nd, 2023
Customer 452773, January 25th, 2024
Customer 452773, March 15th, 2024
Human Resources Management (HRM)
excellent job
Customer 452773, June 25th, 2023
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Thank you
Customer 452811, February 17th, 2024
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
10th grade English
very good
Customer 452773, March 26th, 2023
Customer 452773, March 21st, 2024
Human Resources Management (HRM)
Customer 452773, July 11th, 2023
excellent work
Customer 452773, October 6th, 2023
Business and administrative studies
Thank you for your hard work and help
Customer 452773, February 21st, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp