ABSTRACT. When a member of an organization has to make a decision or act in a way that may benefit some stakeholders at the expense of others, ethical dilemmas may arise. This paper examines ethical sensitivity regarding the duties to clients and owners (principals), employees (agents), and responsibilities to society (third parties). Within this framework, ethical perceptions of male and female managers are compared between the U.S. and Turkey -two countries that differ on power distance as well as the individualism/collectivism dimensions. Our results show that ethical sensitivity varies depending upon whether the interests of principals, agents, or third parties are affected by a given ethical dilemma. We also find that, contingent upon the principal-agent-society relationships, the nationality and gender of the decision-maker influences ethical sensitivity.
<span>Companies are reengineering their fundamental business processes to improve quality, service, and efficiency. When vital business processes are reengineered, new ways of managing and controlling the processes are required. A reengineered accounts payable system and the controls that should be included in the system are described. Through training and support of those who will perform the new processes and the appropriate use of internal controls, companies will maximize their benefits from business reengineering.</span>
A transition from the role of the traditional accountants of the past to that of financial managers is occurring. The educational process must change to provide an understanding of the needs of business. In addition to looking backward to see what is beyond the numbers, accountants should possess knowledge of what is going on in the global economy and provide forward thinking. They need analytical and communication skills that will enable them to be part of the management team necessary for the company to succeed in the global economy. This survey of approximately 100 accounting executives provides empirical confirmation of such comments.
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