Martin Luther and the Catholic Church - 894 Words

â€Å"Unless I am convinced by proofs from scriptures or by plain and clear reasons and arguments, I can and will not retract anything I have written, for it is neither safe nor wise to do anything against conscience. Here I stand. I can do no other. God help me. Amen.† Martin Luther stated these words in 1521 when he was asked whether he still believed what his works taught. The Protestant Reformation was a movement during the 16th century, which aimed to reform some beliefs and practices of the Roman Catholic Church. The reformation was led by a German monk named Martin Luther and was further modified by John Calvin, a French theologian and Henry VIII, the king of England. The ideas bought forward by these individuals started the Protestant Reformation, which triggered wars, prosecutions and the Counter-Reformation. Martin Luther was responsible for the start of the Reformation. He was against many of the Catholic Church’s teachings and beliefs, especially the sale of indulgences. He believed the Roman Catholic Church was corrupt and should be reformed. His beliefs were based on three principles: Sola Fide, Sola scriptura and Sola gratia. He believed that salvation should come from faith rather than from doing good deeds and that religious truth could be obtained by reading the Bible. He believed that humans are able to educate themselves and gain knowledge. At the time, the sale of indulgences was a common practice. On the 31st of October 1517, Martin Luther nailed a document,Show MoreRelatedMartin Luther And The Catholic Church1991 Words   |  8 PagesMartin Luther was an influential scholar, professor, and monk in the 16th century who transformed the Catholic Church by sparking the beginning of the Protestant Reformation. To the Christian Nobility of the German Nation was written by Luther in 1520. Within the text, Luther challenges the three walls of the Church and instigates an ecclesiastical movement. Luther exhorts and rebukes the authority and ideals of the Roman Catholic Church. Because the walls surrounding the Church are leading to corruptionRead MoreMartin Luther And The Catholic Church1724 Words   |  7 PagesMartin Luther Martin Luther was arguably one of the most important figures in the entire history of Christianity. If the creation of the Lutheran Church was not enough of an accomplishment, he can also be credited with orchestrating the division of the Catholic and Protestant churches. Even as a young Augustinian Monk Martin Luther was convinced the Catholic Church had lost its way. He obsessed over his purity and relationship with God, and strongly believed the Catholic Church had lost its way overRead MoreMartin Luther And The Catholic Church1738 Words   |  7 PagesFew people can say that they have changed the world; fewer still can say that they did so unintentionally; but that is exactly what Martin Luther did when he posted his 95 theses in an effort to reform the Catholic Church. And while it resulted in his excommunication at the time, he continued his devotion to his faith and founded the Lutheran religion. Through his actions he not only changed the way that millions of Christians prac ticed their faith both now and in the past through the ProtestantRead MoreMartin Luther And The Roman Catholic Church837 Words   |  4 Pagescriticized the way the Roman Catholic Church was dealing with doctrines, education and dealing with behavior. Hearing what people were saying about the Roman Catholic Church reformers such as Martin Luther, Henry VII, decided to take matters in their own hands and find a way to reform. Martin Luther was a German professor who then decided to become a priest in 1507. He was against indulgences in which people believed forgave all sins that were committed. As a result, Luther wrote â€Å"Ninety-five ThesesRead MoreThe Catholic Church Follow After Martin Luther Essay1086 Words   |  5 PagesClerical celibacy a) The Protestant Church follow after Martin Luther, meaning they do allow Priest who are not married to marry. They do not impose celibacy at all. b) The Orthodox Church does not refute a celibate priesthood, that is after all why the priest-monks (monks that are also priests) exist. Celibacy is on a voluntary bases and never to be forced upon anyone. c) The Catholic Church does impose celibacy on its priest. Recently some of Eastern Catholic Church have allowed for their priest toRead MoreMartin Luther : Cuts All Ties With Catholic Church1712 Words   |  7 PagesDecember 2015 Martin Luther: Cuts All Ties with Catholic Church I. Introduction Whether you believe in a higher power or not, religion has impacted our lives in some way. Vice versa, people can make an impact on religions and transform them to what we know today. Take for example Martin Luther. He was a man looking to simply reform the Roman Catholic Church and its preaching’s because he disagreed with it. With his many ideas, strong will, and criticisms, he forever changed the world. Martin challengedRead MoreRoman Catholic Church Reformation: Martin Luther Essay702 Words   |  3 Pagesreformation when Martin Luther Posted up his Ninety-Five Theses on the door of the Roman Catholic Church and published in Wittenberg, Germany. The Reformation Became the Basis for the founding of Protestantism, one of the three major branches of Christianity. Luther had far-reaching political, economic and social effects. But the main question is why Martin Luther was able to successfully challenge the church of its religious and political authority? After evaluating the main reasons why Luther had successRead MoreMartin Luther And The Catholic1550 Words   |  7 Pagestransformation, but Martin Luther is one of the more significant figures. This paper is about how Martin Luther, a catholic German Monk, played a substantial role in influencing the religion of that time and initiated the Protestant Reformation. Martin Luther affected the Catholic Church, which was the major religion in Europe at the time, with his deep-seated beliefs on indulgences and how you can find your own salvation without aid of the Catholic Church or the Pope. After Martin Luther was tried atRead MoreThe 95 Theses By Martin Luther982 Words   |  4 PagesFor this essay, I chose the 95 Theses by Martin Luther as my primary source. This primary source is a historical document that cause major uproars throughout Europe. The 95 Theses were written by Martin Luther in October of 1517. The 95 Theses were ninety-five statements written by Martin Luther in opposition to the Roman Catholic Church. They challenged the common practices of the Catholic Church, including indulgences and the authority of the pope. The 95 Theses sparked a theological debate thatRead MoreLutheranism and Its Impact on Germanic Peasants1396 Words   |  6 Pagessweeping the Catholic Church. Lutheranism’s impact stretched far beyond its ow n boarders, instigating changes within the Catholic Church to combat Lutheranism. Through Lutheranism, the peasants of Western Europe experienced both a social and spiritual improvement and without Lutheranism, would have faced continued oppression by the Catholic Church. When Martin Luther nailed his 95 Theses to the doors of Castle Church in Wittenberg, Germany, his goal was to reform the Catholic Church and to end its

Theodor Adorno s Influence On Popular Music - 2850 Words

Theodor Adorno was an important member of the Frankfurt School, which developed ideas of critical theory and cultural Marxism. Adorno adopted a Marxists approach in his work, especially among his work as a musicologist, seeing propaganda within popular music. He saw music as thought provoking and believed that it prevented its listeners from having real thought, he wanted people to challenge the way they listened to popular music. In his article On Popular Music, which he had written in 1941, Adorno speaks about how he believed there were two spheres of music, popular and serious music. About the standardisation in popular music, in which it followed certain patterns which created pseudo-individualism. Also on how popular music affects its listeners in different ways compared to serious music. As a Marxist philosopher, Adorno was an idealist for the idea of capitalism, also as a Marxist sociologist he had an understanding of society and the idea of there being two different classes i n all aspects of culture and society. Firstly Adorno addresses the differences between ‘popular’ and ‘serious’ music. Adorno described classical music as classical, although he does say that much of what people would place in the classical category is really just popular. [1] Also when Adorno refers to popular music he is refers to anything that is composed purely for entertainment. David Held points out the different characteristics of ‘serious’ and ‘popular’ music. For ‘serious’ music â€Å"EveryShow MoreRelatedCulture is a Mean of Social Control: Theodor Adorno998 Words   |  4 PagesTheodor Adorno is a representative of the Frankfurt School of Sociology, where the main theories and ideas were influenced by Karl Marx’s work. His main idea that the society is simply divided by a base-superstructure model and that the economy influences everything from religion to politics, referred to as economic determinism, is challenged by Adorno’s th ought. Therefore, the Frankfurt school is part of the neo-Marxist approach as they interpret and add new things in Marx’s ideas. The fundamentalRead MorePop Queen Rihann An Overview1405 Words   |  6 PagesNation). Before releasing the album title ‘Anti† under the Westbury Road Entertainment (Owned by Rihanna) and Roc Nation Record, the leading single â€Å"Work† was released on streaming service provided by Tidal on January 27, 2016. According to Nielsen Music, Work had sold over 126,000 downloads and the eighth studio â€Å"Anti† album generated 4.7 million streams (Caulfield, Gary). To a new listener, Rihanna’s â€Å"Work† full of slangs with offbeat and repeats the lyrics simultaneously (Billboard). Some criticizedRead MoreThe Media Production Program At Ryerson University1282 Words   |  6 Pagesit is these imperfections build character. When hung together they form a tapestry that tells a story of my life. I will now explain p art of that story by analyzing three of these texts from my collage by applying key concepts commonly studied in popular culture. Habitus, described by sociologist Pierre Bourdieu is the manifestation of culture through developed habits and predispositions. Habitus can be thought of as the procedural memory one develops when one improves in a sport by practicing itRead MoreCulture Industry : Enlightenment As Mass Deception2421 Words   |  10 PagesKultureindustrie. Aufklà ¤rung als Massenbetrug, otherwise known as Culture Industry: Enlightenment as Mass Deception was a chapter from Theodor Adorno and Max Horkheimer’s Dialects of Enlightenment. They wrote this essay in the early 40’s, expostulating the thriving force of the entertainment industry, the merchandizing of art and arguing against the conformity of â€Å"culture†. The importance of the Dialects of Enlightenment became an significant cornerstone on the meticulous renunciation of creatingRead MoreAdrienne C. Rich : A Cultural Poet1905 Words   |  8 Pagesresistance to the prevalent ideology. She like them sees culture as venue to spread ideology and to resist it. Thus, deep understanding of Rich’s works reveals them to be an ideological struggle with a aim to empower the powerless. In her poetry of 90’s Rich was at the zenith of her creative powers and her work was diverse and variegated, encompassing a host of themes. She keenly strove to fulfill her aim of the enfranchisement of the deprived, employing sundry poetic skills and multiple technical strategiesRead MoreEssay on Belonging and Difference in Imagined Communities5843 Words   |  24 Pagesintended vectors of consumption of a given corporate product. For example, cosplayers (an abbreviation of costume-players) create their own outfits in imitation of those worn by characters in computer games, animation, live-action media and even popular music. There is little involvement by videogame companies such as Capcom or Squaresoft in these activities; the spaces in which they take place and the forms of their appreciation have arisen ind ependently of the usual ways in which such texts are consumedRead MoreThe Sociology Of Knowledge5656 Words   |  23 PagesSociolog~of Knowledge and its Consciousness The Sociology of Knowledge and Its Consciousness t 1 By Theodor W. Adorno Robert Merton, C. WrightMills et al. repeatedly complained that the sociology of knowledge failed to solve its centralproblem of specifying the nexus between social and cognitive structures. Nonetheless, this field has remained limited to techniques of content analysis and correlation studies whilefailing to explain these categories and correlations other than by recourse tofunctionalistRead MoreDiscourse on Method Essay example3627 Words   |  15 Pagesfeaturing many acts with follies in their titles (51). Since electronic thinking disrupts conceptual reason, the connotation-of madness in folly is fortuitous. The living tableau was one of the forms of travelling theatrical entertainment popular in the saloons. The tableau form in fact originated in lower-class venues as an excuse for viewing undraped women and was adapted in middle-class setting to shift interest from the erotic to other, more ennobling emotions (57). Ulmers (ratherRead MoreProfessional Student4171 Words   |  17 Pagesbehavior and human groups is known as A. psychology. B. political science. C. anthropology. D. sociology. Answer: D 2. Sociology A. is the scientific study of social behavior and human groups. B. focuses primarily on how social relationships influence people’s behavior. C. focuses on how societies develop and change. D. all of these Answer: D 3. The awareness that allows people to comprehend the link between their immediate, personal social settings and the remote, impersonal social worldRead MoreCleanth Brookss Essay Irony as a Principle of Structure9125 Words   |  37 Pagespresent writer upholds the validity of their content. Secondly, a detailed analysis of Rosa Luxemburg’s thought is necessary because its seminal discoveries no less than its errors have had a decisive influence on the theories of Marxists outside Russia, above all in Germany. To some extent this influence persists to this day. For anyone whose interest was first aroused by these problems a truly revolutionary, Communist and Marxist position can be acquired only through a critical confrontation with the

The Financial Performance Measures Accounting Essay Free Essays

During the last old ages, more and more attending is paid to the fillip construction of CEOs of big multinationals. CEO bonuses has become an international issue debated in the parliament and routinely featured in front-page headlines, screen narratives, and telecasting intelligence shows. Several factors have contributed to the widespread involvement in CEO fillips. We will write a custom essay sample on The Financial Performance Measures Accounting Essay or any similar topic only for you Order Now First, the compensation of CEO has risen aggressively during the last decennaries ( Murphy, 1999 ) . Secondly, some houses in the Netherlands were in existent problem during the fiscal crisis, they needed fiscal aid from the authorities, but their CEOs still got a fillip ( Hooft van Huysduynen, 2011 ) . But since the regulations about CEO compensation were wholly ill-defined for companies which needed fiscal aid from the authorities, more arguments were held in the authorities and regulations were changed often. This contributed to the widespread involvement of the topic of executive compensation in The Netherlands ( de Horde, 2011 ) . And in conclusion, there has besides been an detonation in academic research on executive compensation, which contributed to the rosen involvement of CEO bonus-structure ( Murphy, 1999 ) . CEO compensation The compensation bundles negotiated with main executive officers ( CEOs ) of big corporations largely contains four basic constituents: a base wage, an one-year fillip tied to accounting public presentation, stock options, and long term inducement programs ( including restricted stock programs and multi-year accounting-based public presentation programs ) ( Murphy, 1999 ) . The incentive constituent frequently is comprised of both an one-year fillip program and a long-run inducement program, where the final payments from these programs depend on an intricate portfolio of public presentation steps ( Bushman et al, 1996 ) . The compensation commission can take different public presentation steps, including stock return, accounting return and non-financial steps, to find how much of each signifier of compensation the CEO will gain ( Krolick, 2005 ) . Paying CEOs based on short tally accounting net incomes provides inducements to increase short-term net incomes ( by, for illustration, cutting R A ; D ) even if making so reduces value in the long tally. Conceptually, the â€Å" perfect † public presentation step for a CEO is the Chief executive officer ‘s personal part to the value of the house. This part includes the consequence that the CEO has on the public presentation of others in the organisation, and besides the effects that the CEO ‘s actions this twelvemonth have on public presentation in future periods. Unfortunately, the CEO ‘s part to tauten value is about ne’er straight mensurable ; the available steps will necessarily except ways that the CEO creates value, and include the effects of factors non due to the attempts of the CEO, or neglect to uncover ways that the CEO destroys value ( Murphy, 2013 ) . A long line of literature has argued that compensation should be related to public presentation. The grounds for the linkage are both normative and positive. In a normative sense, compensation is considered just if it has been †earned † through superior public presentation. In a positive sense, bureau theoreticians argue that associating compensation to tauten public presentation steps provides inducement to increase steadfast value ( Balsam, 2002 ; Lewellen and Huntsman, 1970 ; Murphy, 1985 ) . Fiscal public presentation steps Fiscal public presentation steps consists of steps of hard currency flow, net income, earnings-per-share, gross revenues, economic value added, return on invested capital, return on assets, return on equity, return on gross revenues, stock monetary value return and cost decrease ( Ittner et al, 1997 ) . The literature paperss that i ¬?nancial accounting steps, particularly steps of proi ¬?tability, are extensively used in executive compensation contracts. There is grounds of widespread, expressed usage of proi ¬?tability steps in the one-year fillip programs and in the long-run public presentation programs of corporate executives. The inexplicit usage of proi ¬?tability steps in the board of manager ‘s rating and compensation of top oi ¬?cers is supported by a robust, positive statistical relation between proi ¬?tability steps and assorted steps of executive wage, including managerial turnover chances ( Bushman and Smith, 2001 ) . The most of import ground of utiliz ing fiscal public presentation steps alternatively of utilizing nonfinancial steps, is that fiscal marks are cheaper and easier to mensurate, since all companies are already compulsory to print a balance sheet and an income statement ( Epstein, 2006 ) . Paul ( 1992 ) shows that stock monetary value need non supply efficient inducements in a multi-task scene because monetary value gaining controls the value of the house instead than the value-added by the director. Ittner et Al ( 1997 ) argues that fiscal steps entirely may non supply the most efficient agencies to actuate directors to move in the mode desired by the house ‘s proprietors. While companies use a assortment of fiscal and non-financial public presentation steps in their one-year CEO fillip programs, about all companies rely on some step of accounting net income such as net income, pre-tax income, or operating net income. Accounting net income measured over short intervals is non, nevertheless, a peculiarly good step of the CEOs part to tauten value, for several grounds. First, CEOs routinely make determinations ( such as sequence planning or R A ; D investings ) that will increase long-term value but non short-term net income. Second, accounting net incomes ( like equity-based steps ) are constantly influenced by factors outside of the control of the CEO, including the effects of concern rhythms, universe oil monetary values, natural catastrophes, terrorist onslaughts, etc. Third, while the steps of accounting net incomes typically used in fillip programs take into history both grosss and disbursals, they ignore the chance cost of the capital employed. The usage of these accounting steps provides inducements to put in any undertaking that earns positive accounting net incomes ( non merely those that earn more than the cost of capital ) , and provides no inducements to abandon undertakings gaining positive accounting net incomes that are less than those needed to cover their cost of capital ( Murphy, 2013 ) . Non-financial public presentation steps Non-financial public presentation steps consists of steps of employee satisfaction, merchandise or service quality, efficiency or productiveness, employee safety, market portion, non-financial strategic aims, procedure betterments and re-engineering, new merchandise development, invention, employee development and preparation, work force diverseness, leading and client satisfaction ( Ittner et al, 1997 ) . Recent grounds indicates that i ¬?rms are progressively utilizing non-i ¬?nancial public presentation steps such as client satisfaction and merchandise quality in the catching procedure within i ¬?rms ( Ittner et al, 1997 ) . Anterior literature shows that noni ¬?nancial public presentation can counterbalance for â€Å" noise † and â€Å" end incongruence † of i ¬?nancial public presentation steps. Another desirable undertaking property of noni ¬?nancial steps is their ability to foretell future public presentation and to ease intertemporal fiting between current investings and future returns ( Matejka et al. , 2009 ) . Non-financial public presentation steps are assumed to ease the board ‘s appraisal of private managerial information so it can more closely supervise the executive decision-making procedure ( Schiehll and Bellavance, 2009 ) . The ground for the usage of non-financial steps in compensation contracts is that they provide information incremental to accounting steps in rewarding and motivation directors ( Davila and Venkatachalam, 2004 ) . Fiscal Crisis Pearson and Clair ( 1998 ) developed a definition for organisational crisis ‘ : †An organisational crisis is a low-probability, high-impact event that threatens the viability of the organisation and is characterized by ambiguity of cause, consequence, and agencies of declaration, every bit good as by a belief that determinations must be made fleetly. † Several illustrations of organisational crisis ‘ are: Extortion, Bribery, Hostile coup d’etat, Information sabotage, Terrorist onslaught, Executive kidnaping, Product callback, Natural catastrophe that destroys corporate central offices ( Pearson and Clair, 1998 ) . The fiscal crisis started in September 2008. Assorted causes of the i ¬?nancial crisis have been cited, including slack ordinance over mortgage loaning, a turning lodging bubble, the rise of derived functions instruments such as collateralized debt duties, and questionable banking patterns ( Kothari and Lester, 2012 ) . This research is concentrating on this fiscal crisis, which started in September 2008, and is still go oning at the minute of composing this thesis. Ittner et Al. ( 1997 ) argues that as the noise in fiscal steps increases, houses tend to put more weight on non-financial steps. At the other side, Matejka et Al. ( 2009 ) i ¬?nd that proi ¬?t urgency and i ¬?nancial hurt ( which make i ¬?nancial public presentation steps more congruent with i ¬?rm ends ) are associated with a lower accent on noni ¬?nancial public presentation steps. Hypothesis development Although old literature us non consistent the usage of non-financial public presentation steps in times of fiscal crisis, more recent research ( Matejka et al. , 2009 ) leads to the premise that the usage of non-financial public presentation steps in CEO fillip contracts will drop during the current fiscal crisis. Based on this premise, the following hypothesis is developed: Hypothesis 1: The usage of non-financial public presentation steps in CEO fillip contracts has been decreased from 2005 to 2010, due to the impact of the fiscal crisis. III. Methodology This subdivision describes the research methods used to look into the empirical association between the fiscal crisis and the usage of non-financial public presentation steps. Sample A mark sample of 27 houses is identified from Dutch companies listed on the Amsterdam Exchange Index ( AEX ) at the beginning of the twelvemonth 2013. No differentiation is made between different sectors, all AEX-listed companies were taken in the sample. Data aggregation Data was collected from proxy statements in one-year studies in two different old ages. To mensurate the consequence of the fiscal crisis, the first twelvemonth which had been measured is 2005, since during 2005 no influence of the fiscal crisis could be perceived. The 2nd twelvemonth which is used to roll up informations, is the twelvemonth 2010. 2010 has been chosen because it was in the center of the fiscal crisis and all informations is now available from this twelvemonth. This research surveies the comparative weights placed on fiscal and non-financial public presentation steps in main executive officer ( CEO ) fillip contracts ( Ittner et al, 1997 ) . This method is similar to the method adopted by Ittner et Al ( 1997 ) and used by Schiehll and Bellavance ( 2009 ) . Variables The empirical theoretical account of this research will be as follow: Y = I ± + I?1Xi +I?2Xi Where Y will incorporate the dependant variable usage of non-financial public presentation steps, I?1 will stand for the state of affairs of the usage of a non-financial public presentation step in 2005 ( 0 will stand for the usage of a fiscal public presentation step in 2005, and 1 will stand for the usage of a non-financial public presentation step in 2005 ) , I?2 will stand for the state of affairs of the usage of a non-financial public presentation step in 2010 ( 0 will stand for the usage of a fiscal public presentation step in 2010, and 1 will stand for the usage of a non-financial public presentation step in 2010 ) , and Xi contains the house. How to cite The Financial Performance Measures Accounting Essay, Essay examples

Values Behavioural Research In Accounting †Myassignmenthelp.Com

Question: Discuss About The Values Behavioural Research In Accounting? Answer: Introduction Budgetary slack is defined as the managerial practice of deliberately overstating costs and underestimating revenues in order to make budget goals easily attainable and present a profitable image of the organisation(Whittington Delaney, 2011). It provides a cushion-like effect in the organisations budget so as to avoid or mitigate unfavourable results. Various scholars have presented an array of opinions on the concept of budgetary slack. It can be described as insurance for uncertainties, a consequence of pressure on the budgetary system, a subsequent reaction to a companys remuneration policies or an ethical issue(Frezatti, et al., 2013). Additionally, some managers rely on it as a risk management tool(Demartini, 2014). The following report has been commissioned by the senior management at Nestle Australia to discuss the concept of budgetary slack and its consequences with particular regard to their bonus program. Having analysed the companys budgetary process and the issues arisi ng from the current approach the report will provide relevant recommendations to mitigate budgetary slack concerns. Consequences of Budgetary Slack Various scholars have provided a plethora of arguments as to the effects, both negative and positive, of budgetary slack on an organisation. The following section aims to highlight some of the negative effects of employing budgetary slack as a management tool. One of the consequences to consider is that budgetary slack leads to an inflation of costs and reduction of profits for the organisation(Milad, 2010). This is because the information provided is used to make decisions and allocate resources as such, the company may end up inflating its actual costs based on the information provided in the budgets. As outlined in the case study, the final budget is created after negotiations with the managers and the CFO; the managers budgets are used to estimate future budgets thus creating a cycle of inflation. Budgetary slack also contributes to inefficiencies in resource allocation(Kopel Riegler, 2014). As aforementioned, budgetary slack is an overestimation or underestimation of costs and revenues respectively; this deliberate misinformation may lead to bias in resource allocation. Most of the time, top management is unaware and uninvolved in the creation of slack, therefore they rely on the information provided by branch managers in their budgets to allocate resources. As the information is inaccurate, the resources allocated to meet company objectives will be based on misinformation thus leading to inefficiencies. This is particularly detrimental to large organisations like Nestle as the resources would have otherwise been redirected to more suitable ventures. Additionally, the inefficiencies in resource allocation present a negative impact on the organisation's performance and profitability( binti Abu Bakar, et al., 2014). Where employee rewards are driven by an achievement of budgetary goals then slack is likely to exist. Incorporating slack into the budgetary process for an extended period of time ultimately affects the overall performance of the organisation which can be determined by a comparison between the organisation's competitiveness against its industry rivals(Bragg, 2013). Therefore, in the long run, budgetary slack presents a negative consequence of the organisation's profitability and competitive advantage. Further, due to the manipulation of budgets, budgetary slack affects the reliability of information as it provides an unrealistic view of company operations( binti Abu Bakar, et al., 2014). This, in turn, affects the effectiveness of the organisations planning systems as upper management may undertake unnecessary steps to decrease expenses and boost sales. Additionally, management is unable to highlight defects in its systems as the information presented paints a different picture of what is on the ground. Additionally, the objectivity in the evaluation of employees is limited as it is based on manipulated information and as such the perceptions created are inaccurate. Budgetary slack may also affect contractual principles and subsequently contractual relationships due to the behavioural change attributable to participatory budgeting(Raghunandan, et al., 2012). Driven by promotions and bonuses as an incentive to achieve budget goals, employees are likely to adopt a self-interests approach in the exercise of their duties thus creating an opportunity for budgetary slack. As agents, employee loyalties should lie with the company objectives, however, budgetary slack may lead to a compromise in their contractual obligations as they aim to satisfy their own interests. Ethics of Branch Managers Behaviour The creation of budgetary slack, particularly in an organisation whose pay scheme is based on performance with regard to bonuses other incentives is considered unethical(Chandra, 2010). Budgetary slack is particularly common where the organisation adopts a participative budgeting approach; that is where each level of management is invited to contribute to the budgeting process(Weygandt, et al., 2010). As aforementioned, budgetary slack creates an unrealistic image of the companys position. As such reliance on this information leads to the setting of unrealistic standards and as such managers, in the long run, are under more pressure to perform so as to earn their bonuses or other incentives. This drives them to incorporate more slack in the budget. These behavioural adaptations to pressure which are driven by deceit create an ethical challenge for the business. In Nestls case, the organisation clearly adopts a participative budgeting system as managers engage the CFO in analysing the quarterly budget and it is assumed these negotiations contribute to the overall annual budget. Further, the organisation has adopted a bonus program which therefore places pressure on managers to meet budgetary goals. Both these characteristics of Nestls budgeting process present suitable grounds for managers to create budgetary slack. As the slack is driven by personal interest to attain budgetary goals and receive the stipulated incentives it is therefore unethical and compromises the obligations of branch managers to the organisation. Impact of Bonus Program on Budgetary Slack As previously mentioned, the Nestle has adopted a bonus program for rewarding branch managers; the organisations budgets are used to evaluate performance. Well-performing managers are rewarded with bonuses, salary increases or promotions. Research shows that where budgeting is used as a motivational instrument in agency situation, budgetary slack is likely to exist and increase(Liessem, et al., 2015). It has been attested that budgets formulated under a slack-inducing pay scheme; where employees are motivated by financial incentives, create high levels of budgetary slack. Financial incentives, therefore, play a significant role in setting out the moral frame of the organisations budgeting process. Personal values and interest further influence how they respond to the frame set out above(Hobson, et al., 2011). It is evident, from the literature set out above that, financial incentives; by way of bonuses, salary increases or promotions, play a significant role in shaping the behavioural patterns of employees. This is because they create pressure to perform or please the principal or authority in order to gain financially. As such, decisions of the agents or in this case branch managers, are likely to be driven by the desire to gain bonuses promotions. This creates room for dishonesty and deception. Managers will, therefore, adopt tactics such as slack so as to create the perception that budgetary goals have been achieved. In the long run, the bonus program only serves to promote and increase budgetary slack as budgets in the Nestle Company are used as a motivational instrument thus affecting employee behaviour. Conclusion In conclusion, the report set out to highlight the concept of budgetary slack and its consequences for the operations of Nestle Australia. Further, the report aimed to highlight the ethics of branch managers behaviour and how the bonus program would influence budgetary slack. From the discourse, budgetary slack has been defined as the overestimation of costs and downplay of revenues by managers. Although utilized far and wide as a management tool, researchers have identified that budgetary slack can be unethical where deliberate dishonesty for personal gain is employed. The report further outlined that cost inflation, inefficient resource allocation, unreliability of information and compromised contractual relationships are some of the consequences Nestle is likely to face from the existence of budgetary slack in its processes. The branch managers conduct to create budgetary slack in order to gain bonuses is unethical as it is driven by dishonesty and is a compromise of their obligat ions as agents of the company. Additionally, the bonus program serves as a driver for the creation of budgetary slack as it influences employee behaviours and promotes personal interest. Recommendations Having analysed Nestls position as discussed above, the study proposes the following solutions to combat or mitigate the issue: Budgetary slack can be reduced through proper training of managers as well as employees on the value of realistic and achievable budgets. Additionally, the company could consider a different motivational tool; that is, rely on other aspects of employee obligations for performance evaluation as over-reliance on budgets has detrimental effects on employee behaviour thus contributing to the creation of budgetary slack. The organisation could also adopt truth-inducing incentives; these cultivate a culture of honesty and a respect for the value of budgets thus reducing the creating of slack. Creating incentives for accurate communication of information goes a long way in maximising organisational performance. References binti Abu Bakar, N. R. et al., 2014. Impact of Organisational Factors on Budgetary Slack. s.l., Kolej Universiti Islam Antarabangsa Selangor. Bragg, S., 2013. Budgetary Slack. [Online] Available at: https://www.accountingtools.com/articles/what-is-budgetary-slack.html [Accessed 15 September 2017]. Chandra, D. S., 2010. Management Control Systems: Principles and Practices. s.l.:PHI Learning Pvt. Ltd. Demartini, C., 2014. Performance Management Systems: Design, Diagnosis and Use. Italy: Physica-Verlag. Frezatti, F., Beck, F. da Silva, J. O., 2013. Perceptions about the Creation of Budgetary Slack in a Participatory Budget Process. Journal of Education and Research in Accounting, 7(4), pp. 322-341. Hobson, J. L., Mellon, M. J. Stevens, D. E., 2011. Determinants of Moral Judgements Regarding Budgetary Slack: An Experimental Examination of Pay Scheme and Personal Values. Behavioural Research in Accounting, 23(1), pp. 87-107. Kopel, M. Riegler, C., 2014. Slack and Participative Budgeting-Always an evil? s.l.: University of Graz. Liessem, T., Schedlinsky, I., Schwering, A. Sommer, F., 2015. Budgetary slack under budget-based incentive schemes-the behavioural impact of social preferences, organisational justice and moral disengagement. Journal of Management Control, 26(1), pp. 81-94. Milad, A. I., 2010. Business Management Handbook. Indiana: Author House. Raghunandan, M., Ramgulam, N. Raghunandan-Mohammed, K., 2012. Examining the Behavioural Aspects of Budgeting with Particular Emphasis on Public Sector/Service Budgets. International Journal of Bussiness and Social Science, 3(14), pp. 110-117. Weygandt, J. J., Kimmel, P. D. Kieso, D. E., 2010. Managerial Accounting: Tools for Business Decision Making. 5th ed. s.l.:John Wiley Sons. Whittington, R. O. Delaney, P. R., 2011. Willey CPA Exam Review. 38th ed. New Jersey: John Wi