The ethical analysis can be conducted with the full understanding of what ethics in fact is. Ethics is all about proper behavior and acting for good; therefore, everyone has his/her own idea of what that means. In any case, the comparison of several ethical scandals should be based on the principles of action and the foundation of ethics. Being a large energy provider, Enron had its good and bad sides. Thus, in 2002 Enron announced its bankruptcy what turned out to be one of the biggest issues in American history. The company’s clients, investors and shareholders lost millions of dollars due to the drop in stock. In addition, many people lost their jobs or even the entire pensions. When and how did the issue start? In fact, there were a number …show more content…
Worldcom was founded as a long distance provider in Mississippi region. Later on, the company started acquiring small telecommunications firms what caused a robust increase leading to over thirty seven billion revenues. The year 1999 was marked by a huge slowdown in the internet and telecommunications industries. Wall Street market reacted to this unusual decrease immediately, so the stock prices began to fall. In order to keep the investments and prevent the fall of earnings, Worldcom began to conduct fraudulent financial reporting. The management of Scott Sullivan was based on putting network control costs and line-costs on the books as capital expenses. In the income statement, expenses were lower; meanwhile, net income was set considerably higher. Thus, they expected for larger revenue in coming years, even though the earnings were constantly …show more content…
They managed to steal more than $430 million by means of fraudulent sales of Tyco stock and hiding this information from the shareholders. The two executives were charged with numerous counts of misconduct, including business corruption and falsification of business records. Even though the investigation did not identify additional fraud issues, the company still restated its financial records by hundreds of millions of dollars. Furthermore, it took additional measures to restore shareholders’ confidence by implementing safeguards to guarantee greater objectivity on the part of the board of directors. Finally, Tyco managed to survive the scandal by making sure such misconduct is not going to occur in the