United Thermostatic Controls ETH 376
June 25, 2012
Susan Paris

United Thermostatic Controls This paper will show the legality of the activities that happened within United Thermostatic Controls based on federal, state, and local laws. As this case is examined the Sarbanes-Oxley act will be discussed as it played a role in this case because United is a publicly owned company. Also this paper will show the ethicality, if the activities were equitable to internal and external stakeholders, and what is the next step based on everything that has happened. Ethics is something that should always be at the forefront of every decision a company makes because if an unethical act is committed it will come out at some point, and …show more content…

There are many companies today that commit fraud, and this act was put into place to stop the corruption and to impose penalties upon those who commit acts, such as these. Based on the findings in this case United did not act equitable in regard to the internal and external stakeholders. The only concern was with the revenue and trying to find a way to increase the revenue for the fourth quarter for the southern division. Instead of choosing to deal with a rough fourth quarter Mr. Campbell decided to make some shipments early, even after the customers had stated differently, just so that the southern division could finish on the high end. This was an unethical act for the company, and this could cost them customers in the future. If the company were concerned about ethics they would not have reported revenue until everything was handled properly. After reviewing the United case the proper next step would be to reverse the journal entries and create the correct entries in the proper periods. United could also contact the customer and apologize for any inconveniences for the shipments being sent early or partial and possibly offer a discount for allowing the early shipments. There is nothing for the company to gain by misstating the revenues; however, Campbell has everything to lose because he is the one making the unethical choices in this circumstance. In conclusion