Examination of ethical behavior within firms in relation to financial management
Firms are expected to uphold ethical standards especially when it comes to financial reporting and management. However many firms keen on making high profits commit frauds by using unethical means in their financial management processes. Tesco and Panasonic are the clearest and the most recent examples of firms which have not upheld the required business ethical standards. For instance Panasonic Corporation, a Japan-based company was involved in bribery and accounting fraud. As a result, the company is to pay more than $143m to the US Securities & Exchange Commission for such violations (Irvine, 2018). On the other hand, Tesco a Britain-based company is set to pay a fine of $162 million for an accounting fraud committed in 2014 (Reuters, 2017). One would agree that the companies deserved the comeuppance as they failed to adhere to the financial management provisions requiring credible financial accounting.
Actions that Trevose Fitness Center (TFC) could take in order to raise capital to reach its expansion goals
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Trevose Fitness Centre just like any other business would be keen to expand its business to increase its profit margins. There are several options that this business would consider in raising the needed capital to facilitate the expansion. One of the actions would be through creating market partnerships with other companies. In essence, strong business relationships can in turn help TFC to secure business loans to facilitate its expansion plans. However, TFC will need to come up attainable business plans to convince the target partners. An example of such a partnership is between the World Wildlife Fund and the Coca-cola Company. This partnership has helped World Wildlife fund to expand to other global regions (Brownlee, Dmytriyev and Elias, 2017). Moreover, Trevose Fitness Centre can make use of angel investors to raise capital for expansion. Angel investors would be beneficial as TFC will raise the required capital without losing out on the company. An example of a company which has used this strategy is Facebook where Peter Thiel invested up to $ 500,000 for 10% stake in the company in 2004 (Shinal, 20170. Consequently, Facebook was able to expand at an unprecedented rate.
References
Brownlee, E. R., Dmytriyev, S. & Elias, A. (2017). Integrative stakeholder engagement: Stakeholder-oriented partnership between the coca-cola company and world wildlife fund. Clinical Research Cases. Issues in Business Ethics , 46, 339-367.
Irvine, J. (2018). Bribery and accounting fraud cost Panasonic $280m. Economia. Retrieved on 3 October 2018, from https://economia.icaew.com/news/may-2018/bribery-and-accounting-fraud-cost-panasonic-280m
Reuters. (2017). Tesco agrees to pay $162 million fine over accounting scandal. Fortune. Retrieved on 3 October 2018, from http://fortune.com/2017/03/28/tesco-accounting-fraud-scandal/
Shinal, J. (2017). Peter Thiel just sold more Facebook shares, but his big mistake was dumping them in 2012. CNBC. Retrieved on 3 October 2018, from https://www.cnbc.com/2017/11/22/peter-thiel-sells-majority-of-facebook-shares-but-2012-was-bigger.html
