Credibility in taxation environments Harvard Case Solution & Analysis


Not only the accounting and finance department needs to have a valid and proper check and balance on them to ensure credibility, the marketing department of any organization also needs to be checked in terms of credibility. It is the duty and thus an organization is accountable to deliver the same products and services to the customers as it was shown during marketing and advertising. It does not matter that medium for advertising has been used, it is the ethical responsibility of companies to deliver the same promises and commitments that the company made in its advertising. This will help companies to gain credibility and trust from customers.


The overall management of any company or association is in need of credibility with its workers as well as with people in general and their group of customers as well. Clients perceive when an association's management practices are expert and sound. Management's reaction to issues related to customers and dissents describes a lot about the company and its credibility as an association. On the off chance that consumers have issues that have been left by the company unsolved or any issues related to the company’s service, the believability of a company can come into the inquiry. Keep in mind, believability is about dependability and completing on what was guaranteed.


Leaders in the organizations are committed to being valid, credible and trustworthy in all parts of their lives. To be credible, it is of extreme importance for the leaders to stick to what he has committed with the other members of the organization. An indecisive leader is the one who sends negative signs to workers and additionally the overall members of the organization. The astounding thing about leadership is the manner by which the words they talk convey so much weight. Their individual practices likewise send messages about their believability to people in general. There has been a couple of fallen pioneers in the most recent days for wrong transgressions. These sorts of circumstances influence the credibility of the whole group, whether they are competitors, legislators or any TV characters (Becker & Fritzsche, 1987).

Credibility in the organizations counts:

With a boost in economic stress in terms of inflation and recession, it becomes extremely vital for the public administrators make an evaluation of the whole situation and find some way to eliminate the negative results disbelieve in regulatory bodies and legislators so that credibility can be regained through making changes in the culture of an organization as required. From a shareholder’s perspective, credibility is related to the perception build with them about the company and the persons involved in it. Companies with having credibility issues tend to be less productive because their one act has lost its credibility, and they spent most of their time in responding to the disparagement and negative comments. Once diminish, credibility is often difficult or even impossible to restore again (Collins, Milliron and Toy, 1990).

Ethical guidelines of credibility:


An important principle that is required to be followed in all organizations to develop and increase credibility is the element of respect. All the accountants and auditors in the company are responsible and thus obliged to act in a way that is based on giving and taking respect to other employees in the organization. The element of respect shall be irrespective of age, nationality, gender, ethnicity, race, health condition, disability or any sexual orientation. However, there are no universal rules for the element of respect. A gesture might seem respectful in one country but might not in another country. For instance, making eye to eye contact is seen as a gesture of giving respect in the USA but maybe not in China.

Humanism and Altruism:

The second principle guideline is based on the factor of altruism. All the accountants and auditors in the company are required to stick to the basic values and beliefs of the company and shall behave in a way that will be in the best interest of the organization. Often, this principle guideline has been usually met but often, employees have to choose between going home early and giving some extra time to its clients to make his problem resolved by staying another half hour in the office without any benefits.

Customer Independence:

Auditors shall oblige to give all the required information to the customers and to make them informed about the goods and bad of their business and finances. The rationale behind this principle is to respect the autonomy of customers in every sense. To do this, employees are again legally bound to inform and explain all the findings that are relevant to that particular customer...................................

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