Unethical Behavior

Unethical Behavior 2

To: Company Managers

From: / Controller

Date: June 6, 2011

Re: Ethics, Negativity and Internal Controls

CC: John Wilson, CEO

As requested by the Chief Executive Officer, John Wilson, I’ve done an extensive investigation to present and past ethical indiscretions. During this investigation I’ve been lead to believe that some of the current situations in every department within this business are showing me some financial signs of employee negativity practices. In the next few sections I will cover possible causes of employee negativity and any recommendations that I give will promote for more stable internal controls in this company. In the first couple of sections I will cover the possible problems that could arise for the company, and the last couple will be my recommendations for the company. These recommendations will change employee’s personal views to all positive aspects for the business.

Unethical Behavior Causes

After speaking with the accounts payable, accounts receivable and the sales departmental managers, I have conclude that there is no ethical code of conduct and no universal standard set of goals in place. Each of these departments is operating on its own set of standards. Unethical behavior starts with employees’ belief that they are not recognized for their hard work and also have little to no leadership within their departments. However, the lack of communication from the management team could be that reason for the lack of leadership.

One other area that I see problems with is in the payroll and commission department. When pay raises are calculated they are not set for today’s standards and they certainly don’t meet cost of living expenses. The way this department rates commissions it’s not based on production and pay raises don’t appear...