The paper 'Ethical Code of Conduct' is a great example of a Business Case Study. Corporate financial statements are prepared and presented to disclose the company's financial situation and performance to the external users. The financial statement defines the corporations going concern state thus depicts viable information for the users in making investment decisions. The Accounting conceptual framework describes that corporate financial statements are prepared with an assumption that the corporation is a going concern hence it will endure its operation for a foreseeable future. Disclosures of the company’ s financial assets are presented in the balance sheet and changes in the value are reported in the income statement and cash flows as gain or loss. Introduction Reputation is a corporate’ s most-valuable assets that predefine the corporation's image and perceptions from the outsiders.
Reputation is considered as an image and perception of the organization in the eyes of the public that determines the trust and honor of the business activities. The perception of good corporate reputation accentuates the fundamental confident level for both customers and investors since reputation as an asset positively attributes the company’ s performance sensitivity.
Reputation is considerate corporate valuable assets since is changes is dynamic as it can gain or lose value faster as compared to other assets. Good reputation influences the decision made by the company’ s consumers in favoring corporates brands as well as emphasizing the company’ s stability thus configures investing image to the potential investors and stakeholders. Good reputation claimed to be the assets of the valuable corporate that are susceptible to damage. Management needs to emphasize more to safeguard the corporates reputation index since any damage will consequently lead slack in the cynical public.
However, damage to corporate reputation has a great impact on financial performances as well as diminishing corporate trust which cannot be restored efficiently. Reporting and valuing the reputation Reputation is claimed to be intangible assets vest on the people’ s and their ideas. Reputation does not constitute corporates risk since it has no financial expression thus it does not fall within risk reporting. The consideration of excellent corporate reputation defines by a very skilled management team and brand equities are impossible to assess their significant worth since they were not acquired for a specific cost.
An attempt to value reputation is spurious since its drivers are dynamic hence lack disclosures initiatives. However, the financial statement does not reveal the value of corporates reputation as an asset in the balance sheet since its worth cannot objectively be measured in dollars hence they cannot report as assets with no worth. Leighton code of ethics disclosures The company’ s code of ethics is a fundamental component in enhancing the company’ s reputational culture through capitalizing on building customer loyalty, as well as a good working environment.
However, the company’ s need to conceptualize on adopting and implementing of ethical policies to realize the full benefits to the company. Leighton Company reveals in 2011 annual report page 37 that the company adopted the revised code of ethics to set out the standards and principles to be adopted by the employees to management. Leighton embraces full ethical commitment by implementing an ethical framework governing employee behavior and performances to achieve high standards of conduct in the company’ s activities.
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