Blog Post 5, June 16, 2020

Summary

As we all know that technology has helped us in various ways, it has helped businesses to be more efficient. In the accounting field, technology has become an essential part of doing journal entries, ledgers, and all sorts of calculations. 

Nowadays, accounting firms are getting into the software business. Making technology part of the business helps accounting firms to increase their revenues by providing more products and services. This behavior usually brings more good than harm unless the company customizes the software or receives a commission from the software provider. In particular, if the accounting firm provides attestation services to the same client that they got the software from. 

Background

The AICPA Code determines rigorous principles for accounting firms and their capability to perform and customize commercial off-the-shelf (COTS) software and financial information systems (FIS). If accounting firms desire to make changes to their software, they will modify or improve the functionality and functions of the software that goes beyond the options that were provided by the third party. According to the code, modifying and enhancing software that was created by a third party would affect the financial reporting, and would lead to impaired independence. While independence impaired, accounting firms will not be allowed to provide some services to its clients such as providing audits of financial statements, reviewing financial statements, or compilation of financial statements, and that is due to making some enhancement to software. If attest services are provided contrary to the AICPA Code, clients and other parties will be depending on inaccurate information

Moreover, under the Code of AICPA, a member must uphold objectivity and dignity in conducting a professional service, be free from conflicts of interest, and not be intentionally misrepresented. Consequently, the receipt of an independent commission is prohibited for accounting firms. The AICPA describes a commission as “any compensation paid to [an accounting firm] for recommending or referring a third party’s product.” It is expressly forbidden for accounting firms to accept a commission from a third party related to a client for which the accounts company offers certified services. However, If no certified services are provided, an accounting firm may accept a third party commission as long as the client has signed a relevant disclosure and has recognized the conflict of interest.

Regardless of disclosure forms, accounting firms are strictly forbidden from providing any attest services such as audits, reviews, or compilations that do not disclose the lack of independence. Thus, an accounting firm is not allowed to accept a commission from offering any valuation, sales-side M&A, and other services that require a review of future financial statements, including financial forecasts and financial projections.   

When an accounting company has designed or created its own software, the findings are not independent. Furthermore, if an accounting firm recommends certain software programs, this might lead to a conflict of interest.  

Failure to disclose a lack of independence or a conflict of interest may lead to future liability for all parties such as the accounting firm and its clients. Customizing software or accepting commissions might lead clients to use false information due to the lack of independence. 

All these adverse effects are needless and can easily be avoided. Accounting firms should grant software companies the right to design, execute, and customize accounting software.

Source:

https://www.accountingtoday.com/opinion/accounting-firms-are-putting-themselves-and-their-clients-at-risk

Blog Post 4, June 10, 2020

When I think about leadership, I always think about people who make a difference in a positive way. On the contrary, many people think about successful leaders as people who made a tremendous amount of money with some efforts. I strongly believe that successful leaders are those who struggled and had to fight the obstacles in order to be where they are right now. I do not believe that people who run organizations and companies should be presented as a model of leadership. It’s true that they might be called successful people, but it does not mean that they should be called leaders. Most importantly, in my opinion, leaders are those who make a change in areas that could benefit the community as a whole such as education, economy etc. In this blog, I will be writing about Freeman A. Hrabowski. I chose this person because he has a passion for changing the future of education. And that is what the world needs. Having a good education system produces successful leaders that could make the world a better place. 

The name of the person and a brief personal bio

In 1950, Freeman Hrabowski was born in Birmingham, Alabama. Freeman Hrabowski is an American educator, advocate, and mathematician. In 1992 he was the president of the University of Maryland. When he was sixteen years old, he graduated from high school. Freeman Hrabowski earned his B.A in mathematics In 1970. After earning his B.A, he earned his M.A from the University of Illinois in 1971. In 1975, he got his Ph.D. in higher education administration. As a child, Freeman Hrabowski grew up in racially divisive Birmingham, and he was invoiced in the civil rights movement. He was arrested at an early age because he participated in Dr. Martin Luther King’s movement. When he was in school, he was unique because he noticed that his classmates were not as good at math as he was. When he attended college, he was the only black person in his classroom. In his early career, Freeman Hrabowski held several positions and they were as follows: assistant professor and an assistant dean of student services at the University of Illinois, associate dean of graduate studies and an associate professor of statistics at Alabama A&M University, and other positions until he became the president of the University of Maryland.

Evidence that this person is a conscious leader

When Freeman Hrabowski was in school, he was passionate about teaching others, especially people of color. Therefore, he established a tutoring center for African Americans to teach them math and science courses. Hrabowski’s main goal is to empower children to take ownership of their education. He does not want children to dislike the learning process, but rather he wants them to want to learn and to love the journey of education. When Freeman Hrabowski became the leader of the University of Maryland, he noticed that the campus had a lot of students from different backgrounds, and they were successful in areas such as art, humanities, and social sciences. However, he found out that students, especially black people in sciences and engineering were not successful. After noticing that, he created a program called Meyerhoff Scholars program to help students in general but focuses more on black people and Hispanic in areas like sciences and engineering. Freeman Hrabowski noticed that a lot of students change their majors during their first year. Therefore, he considered this a challenge for him and wanted to find ways to make students stay in their major that they chose in the first place. Therefore, Freeman Hrabowski and his colleagues came up with four things that could help minority students and other students in general. First, they needed to understand the academic preparation of students such as their grades, the rigor of the course work so they could understand their students, and prepare them for academic life. Second, at the University of Maryland, they started to teach students in sciences and engineering to work together. They wanted students to understand each other and to build trust among them and to support each other. Third, the idea of “ it takes researchers to produce researchers’ ‘ which means that scientists and professors need to pull students to the labs in order to make them experience what they are learning in classrooms. Fourth. Making faculty members observe students and be involved with them to make the learning process more interesting. In addition to Freeman Hrabowski’s involvement in education, he also advised President Obama on topics such as educational issues and consults for the National Science Foundation, National Institutes of Health, and National Academies. Freeman Hrabowski was one of the world’s most influential people in 2012 by Time magazine. This type of leadership is the one I admire, Freeman Hrabowski dedicates his efforts toward students and the education system which will eventually produce great leaders for the world.

I highly recommend watching his TED Talk 

Sources:

https://peoplepill.com/people/freeman-a-hrabowski-iii/

https://www.thehistorymakers.org/biography/freeman-hrabowski-39

5 powerful talks about the quest for equality in the United States

https://www.ted.com/talks/freeman_hrabowski_4_pillars_of_college_success_in_science 

freeman hrabowski quotes 

http://www.planetofsuccess.com/blog/2017/inspirational-education-quotes/ 
 

Blog Post 3, June 3,2020

As individuals, we always lookout for ways to contribute to the community by donating money, food, clothes, etc. We want to get the feeling of happiness and satisfaction that comes after doing something good. We always want to feel that we are part of the community that we live in. By donating and helping others, we add value to the community, and we become close to each other. Adding value to the community is not intended for individuals only but also for companies. I personally believe that in order for a company to become liked/loved by people, they need to be part of the community. I know for a fact that the main goal of businesses is to gain profit, but that does not mean their main concentration should be towards money. Businesses should consider being part of the community by providing some programs in certain areas for people who need to develop some skills such as computer skills etc. They also can allocate some part of their profit to donate. Also, they can give their employees a specific time each month to do some volunteer work. According to (Weiner, 2017),“Being charitable will provide a positive image to a business. This will further help businesses to gain a better clientele and work ahead of their competitors”. Therefore, if companies help the community, they will become more famous among people which will eventually lead to their success. 

1. A brief bio of the company

Almarai Company is a Saudi multinational dairy company. According to Almarai website, “Almarai is the Middle East’s leading food and beverage manufacturer and distributor – and the world’s largest vertically integrated dairy company” Almarai was founded in 1977 and it’s headquarter is in Riyadh. When this company started, it’s main focus was to sell dairy products. However, over the years, the company started to expand the business and sell other products to customers. Through the acquisition of Jeddah-based Western Bakeries, Almarai joined the market for bakery items in 2007. Two years later, Almarai built a bakery factory in Al Kharj which is a small city located in the southeast of the capital Riyadh. By purchasing Hail Agricultural Technology Company (HADCO) in 2009, Almarai introduced poultry goods to its portfolio. In 2009, Almarai started to expand its business outside the Gulf Cooperation Council (GCC) by pooling their respective expertise in dairy and juice with PepsiCo. Almarai went beyond selling products such as dairy, bakery, and poultry goods and started to sell Infant nutrition products in 2010.

2. Evidence that the company is impacting the community in a positive way

Almarai believes that it is their responsibility to make a positive contribution to raising the lives of all in society, creating opportunities and inspiring hope. Almarai’s commitment goes beyond their core business. They believe that helping the community is an essential thing to do that will lead to long- term prosperity for the company as well as the community. Almarai company knows that it plays an important role in the community therefore they support social issues throughout a mixture of charitable donations and event sponsorships.

As part of being supportive, Almarai’s main goal towards the community is focused on a lot of areas such as health, science, education and sports. But mainly, they dedicate their emphasis on education and excellence. Almarai has several awards that people involved in their programs can get, and they are: the Almarai Award for Scientific Innovation, the Almarai Education Excellence Award for Arab students in the GCC, and the Almarai Award for Veterinary Excellence.

Almarai also has several programs that support graduated students to prepare for their future careers. Each year, Almarai trains more than 400 students to provide them the knowledge they need in the future. Almarai has a program called Professional Trainee which trains more than 200 graduated students in order to employ them in the company. 

The Almarai Sales Academy designs and operates competence-based development programs. The objective is to provide the best standards there are, and to empower people to excel in their professions and to grow in their careers while complying with the company’s succession plans.

During the month of Ramadan which is the Islamic month of fasting, Almarai provides meal packages to people all around Saudi Arabia. In 2019, Almarai held a breaking party because they reached more than 437,000 fasting people. Almarai arranged an agreement with the government, private, and charitable institutions to distribute its products in mosques, public open spaces, and traffic lights. According to Al-Otaibi, Almarai’s PR Manager, “ the company’s commitment by these annual arrangements is a confirmation of the corporate belief in social responsibility in this blessed month and a boost of the charitable activities of foundations and NGOs”.

sources:

1- https://www.almarai.com/en/

2- https://www.almarai.com/en/2019/05/27/almarai-participates-in-breaking-the-fast-of-430000/

3- https://www.azquotes.com/quotes/topics/global-community.html

4- https://medium.com/thrive-global/15-examples-of-how-charitable-giving-helped-a-business-succeed-8cc723e2c3c3

Blog Post 2, May 27,2020

We know that advertising and marketing are two of the main methods that companies use to promote their services and products. When creating advertising, companies should take into consideration the differences in beliefs, thoughts, religions, etc.. especially, if they are international companies and they need to promote their products and service overseas. They should not use the same business model when targeting other countries. The main reason behind that is because customers in other countries might not interpret the advertising correctly. This will probably cause customers in other countries to have a certain point of view of companies that are making advertising internationally. Therefore, companies should study their target country very fearfully in order to succeed in their advertisement.

Here are some guidelines that I think will help companies to make their advertisement better and to help them to avoid some mistakes.

The first guideline is that companies should respect people of all kinds, and they should not target a species group of people who might interpret the ads as inappropriate. Examples of that group would be people of color, people with race, and who have a religion, etc. This is important because if companies target a specific group of people in a society with offensive ads, it will lead the community to not be united in a certain way. The underlying principle of this guideline is encouraging unity not racism. An example of ads that did not follow this guideline would be in picture # 1.

#1

As we can see what’s written in the hoody. It says “coolest monkey in the jungle”. In my opinion, this is an offensive ad that links people of color with animals. And it is unacceptable  because it does not encourage diversity but racism. 

On the other hand, by looking at Picture #2, we can see that this ad was successfully able to encourage diversity. In picture #2 we can see people of color, people of ethnicity, and men&women. 

#2 

The second guideline is that companies should not encourage harmful or dangerous practices. This is an important guideline because this type of ad might be understood by adults, but it might not be interpreted appropriately by teenagers and children. The underlying principle of this guideline is avoiding harm and dangerous practices. An example of an ad that violates this guideline would be illustrated in picture #1 

#1

As we can see in this picture that this baby is holding a razor. This might be understood by parents that the razor is safe and could be easily used. However, if a child or a baby sees this picture, they might try to use it which is dangerous.  

On the other hand, picture #2 have the opposite message at least this is how I see it. Picture #2 does not encourage harmful or dangerous practices like speeding. In fact, it encourages drivers to slow down in order to save their lives. 

#2

The third guideline is that companies should be honest and clear when promoting ads. This is an important guideline because companies will gain customer trust if they provide the same product that they promoted for. The underlying principle of this guideline is honesty and trust. Pic #1 shows an ad that violates this guideline. 

#1 

As we can see on the right side of this picture is what the company promoted for, and on the left side is what customers usually get. This misleading food marketing will make customers try to find other alternatives buscase the food they got is not the same as the one they saw in the picture. 

One of the best examples that could illustrate honesty and transparency is shown in picture #2

Pic #2

The company that promoted this ad was trying to send a message to customers to reduce consumption. The company did not aim to increase its profit, but they were trying to say to the customers that even if it is black Friday do not buy things that you do not need. If the products you see on black Friday are cheap, it does not mean you need to buy them. This ad is not trying to trick customers, but it is trying to educate them.

sources:

1. https://ecampusontario.pressbooks.pub/goodcorpbadcorp/chapter/6-marketing-ethics-selling-controversial-products/
2. https://www.patagonia.com/stories/dont-buy-this-jacket-black-friday-and-the-new-york-times/story-18615.html
3. https://www.completewellnessreport.com/top-misleading-food-marketing-tactics/
4. https://digitalsynopsis.com/inspiration/60-public-service-announcements-social-issue-ads/
5. https://www.businessinsider.com/worst-ads-of-the-year-2018-12
6. https://www.thefashionspot.com/runway-news/835647-diversity-report-spring-2019-ad-campaigns/

Blog Post 1, May 20,2020

According to Funk,” A worldview is the set of beliefs about fundamental aspects of Reality that ground and influence all one’s perceiving, thinking, knowing, and doing. The worldview is the world philosophy, a system of ideas, principles, and behaviors that influences all that we do, say, sound, and experience (Ihla 2015). I personally believe that our worldview comes from what we see, practice, hear, and experience in this life. We build our minds based on life experiments, and then we start to judge and criticize anything that might oppose our beliefs. I also believe that our view of things might be hard to change since we are humans. As humans, we most of the time fight the change even if that change might be something good. For example, due to Covid-19, we switched from in-person classes to online classes, and a lot of people did not like this change at the beginning including me. However, a lot of those people who oppose this change concluded that online classes provided them more time to spend with their families, and spend more time on developing their hobbies. I strongly believe our worldview can change by encountering and interacting with other people from different beliefs, cultures, and ethnicity. Besides, some people might view the worldview as what group/ethnicity they belong to. For example, people who have religion might see things differently from those who do not have one.

Funk in his article talked about seven elements of worldview, and in this blog, I will do my best to talk about the following elements: Epistemological, theology, and teleology.

Part one:

Epistemological:

My point of view about epistemology is that it is the knowledge that we gain over time by studying, working, and experiencing things. With that being said, in order to support this knowledge, someone should believe in that knowledge and support it by evidence. Epistemology develops over time, and we become experts in a particular field because of that knowledge. I hold this point of view because this is what I learned in school and life. This link provides some explanations about epistemology: https://www.youtube.com/watch?v=nIEL3GmTkVc

Theology:

My point of view of teleology is that we humans exist for a reason. God created us to worship him and to help one another. Also, God created us to develop the universe, he created brains for us therefore we should use our brains to gain knowledge and then apply that knowledge to develop the world. He created the earth to help us to use it the way he wanted us to use it. I hold this point of view because of where I grew up, and because of my strong belief in god.

Teleology:

I strongly believe that teleology is linked to theology. God created this world for us to use it in the best way possible. The purpose of the universe is to help us live a better life and to use it in a way that makes us happy. I hold this point of view because we use our surroundings every day to do whatever we have to do. We use everything around us to make our life easier and happier.

Part Two

Epistemological

I strongly believe that epistemology has a strong relationship with business ethics. For example, if someone has a really good and high educational level, he/she would respect themselves and the rules as well, and also they will be respected by their colleges. Especially, if they are known for their knowledge and their belief in that knowledge. They would not do anything that could deface their picture/ reputation among people.

Theology

Muslims strongly believe in god, and everything in their lives has something to do with god. Islam encourages people to their best work all the time. According to Prophet Muhammad, “Allah (GOD) will be pleased with those who do their work in a perfect way”. Ethics is an essential part of Islam not just in terms of business, but in terms of all aspects of life. Here is a link for a short video that explains ethics in Islam in more depth: https://www.youtube.com/watch?v=coDFN155vmI 

Teleology

As I mentioned earlier, Teleology is linked with Theology. The universe has a purpose and some people might argue about that purpose. And others might not believe in that purpose at all. I believe that one of the main purposes of the universe is that God created us to worship him and to use everything that he gave to use in a good way that could help others. According to Ralph Lewi, “for many deep thinkers, there have been quite sound and intelligent reasons for believing that the universe was designed and created by a higher power with a higher purpose”.

Sources used in this blog:

1. https://upliftingquotesandscriptures.wordpress.com/2015/05/22/gods-purpose-for-our-lives/ 
2. https://www.lovethispic.com/image/344138/the-purpose-of-life-is-to-live-a-life-of-purpose 
3. https://medium.com/@mihla/expand-your-worldview-c2105e910b7c
4. https://www.learnreligions.com/what-is-epistemology-250526
5. https://www.youtube.com/watch?v=coDFN155vmI 
6. https://www.psychologytoday.com/us/blog/finding-purpose/201905/does-the-universe-have-purpose 

Testing the blog

I created this account for my Business Ethics and Corporate Social Responsibility class.