http://www.financialpost.com/executive/story.html?id=2876480
Summary
Values-led leaders are what our world is in need today. This article suggests that universities and colleges in Canada should add some type of leadership program that focuses on developing humility and intergrity. This is because we cannot just cram our programs with models and theories, we need to give students examples and let them see incredible solutions companies make at complex times. An ethical character is what we should aim towards in these leadership programs. The article also suggest that we need new role models for these students to look up to. We have to have more ethical companies and to start this we need to educate students on how to become ethical and trustworthy in the business world. These models can give students hands-on experience allowing them to make decisions for complex problems. As they do that, they can mentor them so that the students realize that being ethical is the way to success. If we follow these examples, we can create a new generation with value-led and quiet leaders.
Connection
Chapter 5 is based on cash-flow statements. Cash flow statements are the cash flows that are summarized in financial statements. Therefore these statements should be reliable and accurate. Regarding GAAP related to the cash flow statement, United States and International Financial Reporting Standards are very symmetric to Canadian practices. Although they may seem very symmetric, but there are still some difference that are present in the GAAPs. In the United States, interest paid on debt must be classified as an operating cash flow. However, under the International Financial Reporting Standards, it can be classified as a financing cash flow. For the US GAAP, dividends received on investments must be classified as operating cash flows. As for the International Financial Reporting Standards, it can be classified as investing cash flows. As you can see, there are a lot of GAAPs out there and a slight difference in every place. If students are taught about GAAPs earlier, it will help them out on the long run.
Reflection
In this article, examples of value-based leadership is presented. Trying to provoke schools to teach business students ethics earlier will benefit them on the long run. Being ethical is a very important matter in the business world. It means a lot to be ethical. One must be trustworthy and honest in everything they do. Either if it is just making a business transaction between a salesperson and a consumer or making the transaction into financial statements. In my point of view, being able to perform ethics in a business takes skills and experience. Gaining trust from consumers can increase the cash flow of a company because consumers will be willing to pay more if a business has good customer service. All in all, ethics is very important in the business world.
I agree with Leon that work ethics in the business field is very important. I think business owners and other businessmen should be honest and reliable when it comes to the cash flow statements and other financial statements. Students should not only learn about ethics in general, but also why it is right to be ethical. I think telling them why is much more effective than just telling them what to do and what not to do. In my opinion, the American GAAPs and Canadian GAAPs should be merged to form a common set of rules; I think having two sets of GAAPs is quite confusing for many people. As Leon said, all in all ethics in the world of business is quite important.
ReplyDelete