Reference no: EM133188571

Question: Recently, many top managers have been convicted of illegally altering their company's financial statements or providing false information to hide the poor performance of their company from stockholders-or simply for personal gain. You have been charged with the task of creating a control system for your company to ensure managers behave ethically and legally when reporting the performance of their business. To help develop the control system, you identify the five main ways managers use diversification to increase profitability-transferring and leveraging competences, sharing resources, product bundling, and the use of general managerial competencies. How might these five methods be associated with unethical behavior? Can you determine rules or procedures that could prevent managers from behaving in an unethical way?