There was a financial organization I used to work with some years ago that had a habit of cooking figures. At the end of every quarter the accounting department would prepare correct financial statements but the management would alter them to suit the tastes of the external stakeholders. An outsider would think the organization was doing well but there were so many ethical problems going on. And, I really doubted if the Generally Accepted Accounting Principles (GAAP) are enforced fully.
My great issue of concern with that organization was with the creditors and investors. There were people who were contracted to offer services by that organization and most of them were giving their services on credit without knowledge that they were doing it to an organization with a future prospect of sinking with their money. The same to the investors, the cooked books appealed to them and went ahead to invest their hard earned money in that organization.
The ethical issue in that organization was well organized. The employees, management, government and trade association officials who were conducting regular inspections seemed to be all in the know of what was going on. Perhaps, the better treatment the employees were enjoying from the management to cover up their actions was also extended to the inspectors. At the end of each quarter employees were given some perks.
I, personally I could feel bad for being in an organization that was doing what was wrong, though, the management kept promising us, the employees, that the future was bright and they could reverse the situation. When I got fully convinced that the organization was not heading in the right direction I decided to resign before the boat sank.
This class of business ethic has helped me to realize that organization was doing something that was wrong. After, reading about utilitarian theory, the investors and creditors who form the majority of that organization, one day their happiness will not be satisfied as their money will sink in that organization. The selfish nature of the management will make many to suffer and employees will lose their jobs and as result affect even family incomes. If the situation will not change, there are individuals who will lose their lifetime investments and may opt suicide rather than languish in poverty. The management and senior employees may also end up in jail in the long run for being involved in a scandal.
