MANAGING FOR ETHICAL BEHAVIOR

Managing for Ethical Behavior among Individuals within the Organization



Managing for Ethical Behavior among Individuals within the Organization

1. Choose the one process for preventing fraudulent reporting that you consider being the best option.

EBay's limited operating annals did not supply any promise of proceeded profitability. Even though, the business had skilled an exceptional income growth along with a boost in the number of customers, this development was not sustainable and was anticipated to decrease in the future. The history of the business from it is inception to date was not reliable as a device to approximating future growth, earnings or revenues. Moreover, EBay derived its incomes from the transactions recognized during the same period, if a shortfall in transactions were to occur; EBay would not have any other source of income and would not be adept to cover expenses.

-Seasonality: Not only is EBay's enterprise cyclic by nature, but it had not been in business long enough to forecast the repercussions of the United States finances on its performance.

-Doubt on Future Demand: EBay's enterprise was a new emerging market, which grew fast due to the phenomenon initiated by the web. It was hard to forecast if use grade of the Internet and online services would remain constant.

After only three years of being in business, Ebay had begun the method for its public stock sale, when the supply valuations were at record levels. Then a fall on the Internet supply Index (ISDEX) and the S&P500 caused numerous businesses to put their publicly traded future on hold (Davis, 1996b). Later, the market started to retrieve at the cost of high volatilities and the inquiry of if to precede public or not became a large-scale anxiety for Gary Bengier.

Unlike its competitors and the large most of Internet companies, Ebay had very good profits and a characteristic form that guaranteed success. Moreover, If the company determined to go for the public proposing the signaling effect would be a benefit; EBay's willingness to go public regardless of the market's instability was a positive signal about how the company seen the strength of its proposing.

EBay's early stage of development

-Worldwide expansion: Not only were there an allotment of competitors trying to elaborate, but new matters would sway the company such as foreign currency exchange rate fluctuations (revenues would be held in a different currency), tariffs and guidelines among others.

-Dangers affiliated with technology: scheme malfunction, technical adversities ...