Explain in details how misconduct in workplace effects on having: 1- Actual FInancial loss 2- Cost of investigation...

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Accounting

Explain in details how misconduct inworkplace effects on having:
1- Actual FInancial loss
2- Cost of investigation have to be borne
3- Loss of share in the market
4- Revocation of special grant or privilege (if any) bygovernment

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Ans Workplace misconduct falls into two categories gross and general While general misconduct is a problem for employers gross misconduct is a reason for swift disciplinary action usually dismissal As a smallbusiness owner make sure you understand that the burden of proof is on the employer when firing someone for gross misconduct Keep accurate records in human resources files and document everything related to the behavior Like all organizations Calvin University is faced with risks from wrongdoing misconduct dishonesty and fraud in its financial operations As with all business exposures we must be prepared to manage these risks and their potential impact in a professional manner 1 Actual Financial Loss Financial loss is an obvious effect of both types of fraud When someone misappropriates company assets the loss is fairly easy to quantify For example if a cashier takes 60 from the cash register the company loses 60 The costs of fraudulent financial reporting are harder to determine If a smallbusiness owner perpetrates financial statement fraud an explicit dollar figure might not be obvious However fines assessed for misleading investors civil suits to recoup investor and creditor losses and the unwillingness of companies to extend credit to the business in the future all add up to a severe financial loss for the company Companies with a strong ethical identity tend to maintain a higher degree of stakeholder satisfaction positively influencing the financial results of the company according to the Ethical Investment Research Service Conversely lack of personal and professional ethics can lead to negative financial results as recently evidenced by the collapse of Wall Street firms Risky loans and questionable business practices put many banking and insurance firms in a precarious position Ensuring ethical behavior at your company can help improve your companys economic performanceIn our capitalist society the economy emphasizes private ownership in a privately controlled economy Companies exist primarily to make money for their owners and shareholders Generating a profit is the main goal Shortterm profit tends to be more important than longterm success Without confidence in management stakeholders tend to limit investments negatively affecting growth According to EIRIS studies show that ethicsrelated news influences a companys share price for better or worse revealing effects of between 05 and 3 of share price Whether a company has outside investors relies on venturecapital funding or reinvests its own profits keeping accurate records is essential to longterm success Announcing large returns that are the result of fraudulent accounting can lead to issues that ultimately hurt a companys performance Ethical business practices can help companies avoid legal problems and negative financial results that arise once the unethical behavior is discovered These practices can also help companies provide a consistent return on investment as they continue focusing on operating effectively and efficiently See Answer

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