Business Accounting (Gbb/Gcb 1013)
BUSINESS ACCOUNTING (GBB/GCB 1013)
SEMESTER JANUARY 2013
TITLE: ___________________________________________
LECTURER: HEZLINA BT M HASHIM
GROUP MEMBERS: No. | Name | Student ID | 1 | | | 2 | | | 3 | | | 4 | | | 5 | | |
DATE RECEIVED: __________________________
INTRODUCTION:
Charitable organizations are NGOs whose purpose of existence is to benefit the public. The mission of a charitable non-profit expresses the particular way in which the organization will fulfil its public benefit purpose. The board members of a non-profit organization entrusted with the supervision of the board members who have a legal obligation to ensure that the non-profit organization uses the funds to fulfil its mission.
QUESTION:
Better Days Ahead, a charitable organization, has a standing agreement with First National Bank. The agreement allows Better Days Ahead to overdraw its cash balance at the bank when donations are running low. In the past, Better Days Ahead managed funds wisely, and rarely used this privilege. Jacob Henson has recently become the president of Better Days. To expand operations, Henson acquired office equipment and spent large amounts on fundraising. During Henson’s presidency, Better Days Ahead has maintained a negative bank balance of approximately $10,000.
1. - What is the ethical issue in the situation?
The issue in this situation is the investment policy. Managers of non-profit organizations must ensure that investments are consistent with the values and principles set to achieve the stated objectives to guide activities, and ethical behaviour of its employees, volunteers and board members. The lack of an ethical base as a result of the lack of creation and monitoring of ethical standards has the potential to lead to a lack of success in the organization. However the fulfilment of the ethical standards of the institution by the leader and employees, since success is reflected in the work to be carried out, ensuring the objectives and goals to
SEMESTER JANUARY 2013
TITLE: ___________________________________________
LECTURER: HEZLINA BT M HASHIM
GROUP MEMBERS: No. | Name | Student ID | 1 | | | 2 | | | 3 | | | 4 | | | 5 | | |
DATE RECEIVED: __________________________
INTRODUCTION:
Charitable organizations are NGOs whose purpose of existence is to benefit the public. The mission of a charitable non-profit expresses the particular way in which the organization will fulfil its public benefit purpose. The board members of a non-profit organization entrusted with the supervision of the board members who have a legal obligation to ensure that the non-profit organization uses the funds to fulfil its mission.
QUESTION:
Better Days Ahead, a charitable organization, has a standing agreement with First National Bank. The agreement allows Better Days Ahead to overdraw its cash balance at the bank when donations are running low. In the past, Better Days Ahead managed funds wisely, and rarely used this privilege. Jacob Henson has recently become the president of Better Days. To expand operations, Henson acquired office equipment and spent large amounts on fundraising. During Henson’s presidency, Better Days Ahead has maintained a negative bank balance of approximately $10,000.
1. - What is the ethical issue in the situation?
The issue in this situation is the investment policy. Managers of non-profit organizations must ensure that investments are consistent with the values and principles set to achieve the stated objectives to guide activities, and ethical behaviour of its employees, volunteers and board members. The lack of an ethical base as a result of the lack of creation and monitoring of ethical standards has the potential to lead to a lack of success in the organization. However the fulfilment of the ethical standards of the institution by the leader and employees, since success is reflected in the work to be carried out, ensuring the objectives and goals to