It was another most cited scandal in the history of accounting frauds. Lehman Brothers was a global financial service provider. The actual fraud was done by hiding the losses of around $50 billion as sales. When the company went bankrupt, the actual scenario got public. The key players were the executives of Lehman Brothers and also the auditors of Ernst & Young.
1. How did pressures for financial performance contribute to Sunbeam’s culture, where quarterly sales were manipulated to influence investors? To what extent do you believe the Andersen auditors should have considered the resulting culture in planning and executing its audit? Before Chainsaw Al was brought in as CEO at Sunbeam, Sunbeam had already experienced financial distress. Sunbeam was pressured to fix their financial issues, and were looking at all options on how to solve their internal crisis.
Corporations ensure journalists who inquire too deeply into politics and raise questions about business position in society will not see their stories to the masses and that journalist’s job is to keep corporation happy but reporting issues that are irrelevant. Third, business power undermines the development of aspect of democracy. Fourth, “business power is a threat to democracy because of a new divergence between the economic interests of business
The government plays a role by creating regulations for businesses to follow. Businesses may be fined or shut down in some cases. The government wants to limit the harm to others some of businesses can be causing. In my opinion, the government needs to play a bigger role by forcing recycling. If we are hurting the environment as bad as they say we are, then it would be a law to recycle.
Even though some investors left the company, McDonnell Douglas couldn’t because of their deal with Boeing. The main ethical issue in this case is the hiding of information from stakeholders by Boeing. They did not disclose the cost overruns in both their first and second financial statements because they knew their stock would have plummeted and their deal with McDonnel Douglas would have been revoked. One of the company 's public relations manager wanted to reveal the bad news on the dates of Princess Diana’s or Mother Teresa’s funerals in order for the
According to Vazquez-Carrasco and Lopez-Perez (2013), the stakeholder’s expectations are one of the disadvantages for the company because of the investment of them in the business. The company consider the social requirements of business and reduce the investment of stakeholders in order to invest completely elsewhere. 4.2. Corporate Social Responsibility Techniques in Tesco The techniques associated to corporate social responsibility states that approaching CSR was not really considered as doing the employment but was fragmented. The CSR activity was not measured by commercial and social impact that employed inspired to.
Wall Street, in collusion with Washington by means of campaign financing and political donations, has been deregulating financial markets since the 80s in order to benefit themselves. Profiting from riskier and more corrupt behaviour, the relationship between Wall Street and Washington became cosier in the belief what was good for Wall Street was good for Main Street (Giltin, 2011 p.7, 10, 11). The American public began to exert their feelings of frustration with the occurrence of The Global Financial Crisis (GFC). Pointing the finger largely at Wall Street, Americans blamed the greed and corruption of financial institutions for inciting the crisis. The feelings of distain were only further enhanced when tax payer bailouts saved Wall Street from a problem that was essentially self-created.
The fee of $ 550 million was as meagre as letting go of a two week profit for them. Even though it was the largest ever fee collected from the Wall Street, for Goldman Sachs it was just a soft pinch. The U.S. Treasury was to get $300 million and the remaining to those who had suffered due to the Abacus deal. There is a need for financial regulations which expose the derivative markets. The taxpayers need to be safeguarded against having to fund potential bail outs of banks and there needs to be transparency in the dealings of financial intermediaries.
Remaining responsible is vastly important to any organization. Many strategic plans will alter some of the organization’s policies, procedures, and practices. When conducting the environmental scan, management must collect information for the company to understand what is and what is not ethical. According to Wheelen & Hunger (2010), Riordan’s ethical responsibilities “are to follow the beliefs and behavior of the organization in society.” As a plastic manufacture, society expects Riordan to use recycled plastic to help protect the environment. By using up older water bottled, Riordan can help protect the environment by not polluting the environment by producing more.
The misconduct of code of ethics by the management level by Enron corporation has led to the another question – The ultimate responsibility of a corporation towards society ? The ultimate responsibility of a corporation is to gain profit or become a stable economic unit ? (Johnson , 2014 ) In this case , it shows that under normal circumstances the management level of a company or corporation will choose to hide the truth over honesty and integrity .In other way , profitability has override the important of ethics in the corporation .