Cubic Corporation
Cubic Corporation restated financial statements due to errors in calculating revenues on certain long-term development contracts and on long-term service contracts with non-U.S. Government customers.
Cubic historically recognized sales and profits for development contracts using the cost-to-cost percentage-of-completion method of accounting, modified by a formulary adjustment which had the effect of deferring a portion of revenue and profits until later in the contract performance period.
Cubic also used the cost-to-cost percentage-of completion to revenues for its service contracts, which is only acceptable for U.S. Government contracts.
What is Ethical Leadership?
The Ethical Leader:
Understands that positive relationships are built on respect, openness, and trust.
Portrays the underlying principles of integrity, honesty, fairness, justice, responsibility, accountability, and empathy.
Aligns external actions with one’s internal values.
Strives to honor and respect others in the organizations.
Seeks to empower others to achieve success by focusing on right action.
Leads by example.
Has a vision of the future that entails some notion of the good.
