Though the number of financial fraud cases in 2013 is the same as that of last year, the total value of these cases in 2013 had risen to £1868,548 this year.

Due to the increasing values, analysts found that most of them are dominated by the embezzlement and tax fraud.

Fraudulent statement would more likely to occur in people who understand the operation steps of financial statement.

The government should consolidate its management and policy, but commercial banks should regulate themselves rather than risk all to increase their bank balances. It would be such a potential uncertainty that allowed professional criminals to take advantage of it. As what we discussed in the class, fraudulent financial reporting might result from greed of businessmen and weak internal controls. This case is exactly the example of lack of effective supervision and documentation.

Other than these reasons, there might be inefficient external evaluations or lack of third-party evaluations for these companies. As a result, no matter which reason each case belongs to, the losses will not only affect the honest investors and private sectors, but also the costs of government.  As what said in the passage, “a severe punishment regime should be proposed soon.”

link to the passage: http://www.bbc.co.uk/news/uk-scotland-23179763

On this Thursday, Twitter announced that it wanted to raise $1bn by listing on the US stock markets, making it the biggest initial public offering (IPO) from a technology since Facebook went public in May 2012.

I was thinking that how could Twitter let its revenue up to $1bn with its selling shares, because it did not make any profits and even lost &275 million. The only idea is to add more advertisement in order to increase their earnings. However, this behavior would largely arise the disagreement from users, because they may feel their experience would be disrupted and get annoyed by the Pop-up windows.  As the data indicated, there are more than 65 percent of Twitter’s advertising revenue was generated from mobile devices, so that if they ruined the customer relationship and thus reduce the brand value, they will again keep losing a lot from their revenues.

From the nine building blocks of business model generation, I consider that Twitter has more than one group of customers, so it should think carefully before any decision-making. It seems that this decision could make large profits in the short run, but it will lost in the long run.

The following link to the passage is http://www.bbc.co.uk/news/business-24392336

As stated by professor R. Edward Freeman in Darden School of Business in University of Virginia, some people do not believe that there is a balance in business activities and ethics. Instead, they consider that business ethics would be an absurd contradiction. Most of the time, the ultimate goal of a company is to maximize its profits without paying too much attention to the ethic problem. As for me, to some extent, I agree with this perspective, because there are many cases or evidence proved it before. I found an article talking about Walmart’s unethical behaviors for continuing to accept the non-safety and unauthorized clothes from banned suppliers in Bangladeshi.

From my perspective, I reckon that Walmart, as a business company, must cover its costs in order to run it well, but they also need to care the serious safety problems of clothes. However, they just think that they should jump out from the bankruptcy dilemma and ignore all the other problems. As a responsible business company, they should explain this situation to the customers and other social groups like NGOs as well. To find excuses for themselves and shift blame is not a reasonable idea for them if they would like to build up their reputations in the long run. The stakeholders such as corporate executives should conduct their business in accordance with their desires, obeying the basic social responsibilities of the society.

The following website address is the document that I mentioned in my article before.

http://business-ethics.com/2013/06/17/1606-walmart-accepted-clothing-from-banned-bangladesh-factories/ (Observation time: 6:34PM Sep 11, 2013)

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