Ethics- Scenario of an unethical CFO

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Ethics- Scenario of an unethical CFO

CFO’s are responsible for handling payables, receivables and creating periodic financial statements within a company. However, some CFO’s fail to deliver accurate financial statements due to various reasons. The CFO of a small company has been made as an example for such a scenario. The CFO of this small company is examined in order to create a solution for such unethical cases.

CFO’s of every company should be assessed together with the reports they present after a given period disregarding the number of years they have been working. This is because the unethical behavior of presenting inaccurate data in financial reports is common among CFO’s who have been in an organization for many years as evidenced in the small company. They tend to present data by referring to the previous months reports since they already know the company’s financial trend. An assessment committee among the board of members should be created to curb this behavior. Their job would be to analyze and confirm the credibility of reports by working closely with the financial department. Therefore, the reports presented to the CEO of an organization would be precise and accurate. This will help in monitoring company’s progress more effectively.

The company should also enforce strict rules pertaining to dishonesty. These would also include an outline of the consequences with which an employee would be forced to go through if they failed to go by it. The penalty may include punitive measures such as being arraigned in court for misinformation or being fired from the work place. This will help the company solve this unethical behavior. Hence, the CFO’s would feel more obligated towards honesty in their work than in a situation where there are no rules at all.