Debate On Health Warning And Corporate Responsibility

Stakeholders in the Debate

1. The major stakeholders in the debate of the health warning are Mary Bender; she is the marketing manager of Big Business Tobacco, Randall Hedges; he is the public relation manager in Big Business Tobacco. In the above debate both of them are truly fulfilling theirs as per their position in the company. Mary Bender is concentrating on the company’s bottom line which is her role in serving the company. Whereas, Randall Hedges concentrating on the corporate responsibility factor. Corporate responsibility is very much important for the company (Valentine et al., 2015). This helps the company securing itself from many legal responsibilities. He is also looking to the fact of health hazard which is most importantly very much necessary as per complying with the fact of looking for a health of the customers. Corporate responsibility aims as fulfilling the goals, aims and objective of the company in a parallel way thinking to the society of the company. Nowadays, implementation of CSR activity has been very important for any company. CRS activity helps the company from getting affected by any legal or societal problems (Navi 2012).

2. The ethical issue helps a company in bringing the system of moral and principles into conflict. Ethics is that branch of study which includes the way in which the people should live based on same morality. The ethical issue deals in distinguishing what is correct and what is incorrect, what is bad and what is good and what are the correct responsibilities one should follow. The basic goal of ethics is to have the people live their life in a proper way. According to the debate, the ethical issue involved is the involved is the looking to the fact of “health hazard” which is very much necessary to look into. If the health hazard factor is not taken into consideration, then many issues will arise not only the ethical issue (Dion 2015). Here, Randall Hedges the public relation manager of BBT urges for including the warning on the pack of cigarettes will help in complying with the ethical issue as well as fulfilling the CSR activity in their company. The inclusion of this warning will also help the in fulfilling the legal aspect of the Australian law. He also has looked through the medical findings which have forecasted the thousands of deaths from due to cigarette smoking specifically in the developing countries. So from the above discussion most importantly the ethical issue arise ignoring to the health factor of the customers and concentrating on the only fact of the bottom line, i.e., Profit of the company (Fifka 2013).

The Ethical Issue and Corporate Responsibility

3. Randall Hedges is thinking of the about the fact of ‘health hazard’ which will enable him to fulfill to the fact of CSR and Ethical Issue factor. Being a public relation manager, he is trying to fulfill his responsibility by thinking about the company as well as the society. The health warning inclusion factor is helping in fulfilling his responsibility for thinking of the society, so that by reading the warning on the pack of cigarette at least some of the people in the society can get saved from not having the cigarette. Implementation of health warning will also help the company in complying with the Australian law. If the company is fulfilling the CSR activity, it will help the company in fulfilling the and achieving its long-term goal (Leipziger 2015).

1. Yes, Phil and Josephine are fully liable for the mistake they have conducted. They should not have overlooked the tax liabilities for the companies. The payment of tax is a very important duty of each and every individual of any country (Wilson-Rogers and Pinto 2015). Non-payments of tax will lead to penalties.  The tax is one of the sources of revenue for the country to run the company. If anyone does not pay tax, he has to go through penalties. Legal action might be taken against the people who are not paying the tax after several numbers of notice and reminder. If a timely tax is not paid then, the company’s license will be cancel, and it will be considered as illegally conducting the business. Australian Taxation Office is the governing body for taxation or statutory agency for collection of the revenue of the Australian government. Australian Taxation Office has legislation body as Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 (Deegan 2012).

2. As being a director of the company, Phil and Josephine should follow all the rules and regulation for running the company. The rule for continuing the company is to have at least minimum two directors to run the company. There are many task and responsibilities of the directors who are as follows:

• First of all, a director of the company must be principal strategist and planner. He should fully understand the necessary resources as well as the strategies to be implemented when and how. It should always start the business with plan and marketing activities to be involved shortly. There has to be complete research, planning and writing for the development of the plan and forecasted to change when required.
• Second is the finance and accounting task. Almost all the business needs a start-up capital to get settled and grow the services and the products. It depends on the nature of the business whether it needs a small budget or a huge one. Some of the business needs a small amount of loan to get the fund for the expense of the “retail space, office equipment, and hiring employees”. There is also the need for maintaining current bank accounts, processing of payments, trades which are receivable and payable and the taxes.
• Then come to Marketing and Sales. It does not matter how good the product is or service is given, inclusion of marketing and sale is very much important to drive the business. The marketing and the sales strategies duly depends on the nature of the business, which moreover includes “advertising, online marketing, networking, cold calling public relations and commissioned salespeople”.
• The customer service also plays a very important role as they are the one to whom it is served. This activity includes emails, phone calls, follow-up regarding the delivery of the product and the issues regarding the products. As the business is growing it moves forward to hire people for the customer service and wherever possible to scale the operations of the development.

1. 

Particulars	Amt $
Asset	56000
Liability	38000
Profit	18000

 2. 

Particulars	Amt $
Asset	56000
Liability	38000
Drawings	15000
Profit	3000

3. 

Particulars	Amt $
Asset	56000
Liability	38000
Drawings	12000
Capital	2000
Profit	4000

1. The transactions with increase in asset as well as increase in liability:

• If the company receives cash from the bank as loan, it will increase current asset and similarly it will increase the liability in respect of loan to pay off.
• If the company engages in the purchase of some significant quantities of the supplies on the credit (Li and Tran 2016).

2. The transactions with decrease in one asset and increase in another asset:

• If the company purchases any machinery or equipment or vehicle or any of the fixed asset with the company cash (West 2015).
• With the purchase of land by paying 50% in cash and “signing a note payable” for the other 50%

3. The transactions for decrease in asset as well as decrease in equity:

• If drawing is occurring from the business by the owner for his personal use
• If there is payment of the rent(Kaplan and Atkinson 2015)

4. The transactions for increase in asset as well as increase in equity:

• If there is involvement of the personal cash of the owner in the business,
• If there is contribution of the personal truck by the owner to the business.

5. The transactions for Decrease in liability as well as decrease in asset:

• If the company repays the loan amount of the bank (Deegan 2012).
• The transaction which has occurred in paying the business expenses.

Reference List

Deegan, C., 2012. Australian financial accounting. McGraw-Hill Education Australia.

Dion, M., 2015. Is money laundering an ethical issue?. Journal of Money Laundering Control, 18(4), pp.425-437.

Fifka, M.S., 2013. Corporate Responsibility Reporting and its Determinants in Comparative Perspective–a Review of the Empirical Literature and a Meta?analysis. Business strategy and the environment, 22(1), pp.1-35.

Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.

Leipziger, D., 2015. The corporate responsibility code book. Greenleaf Publishing.

Li, E. and Tran, A., 2016, December. An empirical analysis of the tax burden of mining firms versus non?mining firms in Australia. In Australian Tax Forum(Vol. 31).

Navi, S.T., 2012. Corporate social responsibility.

Valentine, S., Fleischman, G. and Godkin, L., 2015, January. Unethical Corporate Values, Bullying Experiences, Psychopathy, and Salespersons’ Ethical Reasoning. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 11596). Academy of Management.

West, B., 2015. The eighth Accounting History International Conference: 19-21 August 2015, Ballarat, Australia. Accounting History, 20(4), p.539.

Wilson-Rogers, N. and Pinto, D., 2015. A mandatory information disclosure regime to strengthen Australia’s anti-avoidance income tax rules.