ipl-logo

Key Ethical Problems Of Adelphia Communications

1414 Words6 Pages

In the early 2000s, John Rigas the former Chairman, President and Chief Executive Officer (CEO) of Adelphia Communications Corporation, one of the nation’s largest cable-television company, along with two of his sons whom also served as top executives in the company were reported by the Securities and Exchange Commission (SEC) for “violation of racketeering influenced”, fraud, and massive looting (Markon, J., & Frank, R. 2002, July 25). The former vice president of finance and former director of internal reporting were also accused in the Government’s complaint (Markon, J., & Frank, R. 2002, July 25). The SEC complaint accused the company of their neglect to reveal billions of funding on the company’s financial statements which falsely represented the company and their moral behavior (Barlaup, K., Hanne, I. D., & Stuart, I., 2009).

Adelphia Communication Key Ethical Problems
Examining the Adelphia Communication Corporation’s scandal there were major key ethical problems, and or what I call red flags. The first red flag was the manipulation and control in which the Rigas executives demonstrated. Their actions facilitated a lack of trust throughout the Adelphia Communications Agency. The Rigas executives were the company’s superiors, and from what I gathered, when directed to execute a project their employees accomplished the given task rather it was ethical or unethical. There were several incidents of lack of trust throughout the reading that were

Show More
Related

  • Court Case Of John And Timothy Rigas

    771 Words  | 4 Pages

    In the case of Adelphia, the individuals found guilty in this case neglected their duties as managers and their duties to the SHAREHOLDERS. With the positions as Chairman of the board of directors, President, and Vice President, they all had "fiduciary duties to both the corporation and its shareholders" Beatty & Samuelson (2016). The SEC's suit against them for multiple frauds on different counts, did not protect them from the BUSINESS JUDGEMENT RULE based on the fact that they weren't acting in good faith by putting the company in debt and manipulating statements to conceal the

    Read More

  • Wgu Gke2 Task 2

    277 Words  | 2 Pages

    In this situation I would not want to shut down any of my community based organizations. Knowing that the closure would lead to loss of jobs and affect the community as a whole. For starters I would look over our budget to see if there where any areas that I could possibly cut cost or do without. Going by a budget can also help you minimize risk for future obstacles. By eliminating unnecessary cost hopefully will increase funding so that layoffs will not be my only option.

    Read More

  • Reign Of Terror Dbq Essay

    381 Words  | 2 Pages

    Document E states that in order to protect the public safety, “The Committee soon employed a shadowy network of informers and spies to achieve these ends”. The actions of the Committee

    Read More

  • Foxtel Business Ethics

    537 Words  | 3 Pages

    The Australian Consumer Law (ACL) sets strict legal guidelines that all business must abide to. The ACL is enforced and administered by the Australian Competition and Consumer Commission (ACCC), as well as State and territory agencies (Australian Consumer Law 2016). The ACCC ensures that the advertising of a product is not misleading or deceptive to the consumer (Class Notes, 2016). As well as the ACL and ACCC, the telecommunications (Customer Service Guarantee) Standard 2011 is enforced upon Foxtel, requiring that they meet minimum performance standards (Foxtel 2016).

    Read More

  • Gilded Age Industrialization And The Panic Of 1873

    671 Words  | 3 Pages

    One example was the Credit Mobilier scandal where major stockholders of the Union Pacific Railroad formed the Credit Mobilier company and sold their shares to influential congressmen. These executives essentially hired themselves and stole taxpayer money, a very lucrative scandal. Scandals like the Credit Mobilier were widespread and executives from many other railroad companies often stole from their own companies. Many executives would manipulate the rail companies' stocks to profit greatly. Executives would often bribe influential politicians, and work together to profit themselves.

    Read More

  • How Does Leadership Influence Organizational Culture

    705 Words  | 3 Pages

    Can we truly believe that just one or two bad apples cause these scandals? The environment is such that performance is rewarded, such behavior leads to rewards and everybody around them gets away with it, so why not do it too? Their managers may not direct them to behave unethically but certainly created the culture to behave so. Can Rupert Murdoch and his senior management get away with the excuse of “being in the dark”? I agree that they can’t be responsible for everything that happens in an organisation, but they must certainly shoulder some of the blame for creating conditions for the actions.

    Read More

  • Peter Finch Case Study Essay

    2311 Words  | 10 Pages

    Question 1 Peter Loescher was hired by Siemens when the company was experiencing extremely difficult times. After the bribery scandal, the main goal was to gain back the trust and respect from the customers and partners, as well as building a new vision. The company’s board of directors decided that they needed a person from outside of the company, who had no connection and loyalty to previous vision, and no affiliation with previous management team. In my opinion, the company owners hired Loescher for a specific purpose to change the overall team perception of how work is supposed to be done.

    Read More

  • Whistleblowing System In The Film Chasing Madoff

    1179 Words  | 5 Pages

    “Chasing Madoff”, a documentary released in 2010 portrays the way the whistleblower, Harry Markopolos, uncovered Bernie Madoff’s fraud scheme and his ten-year struggle to get the SEC to investigate. The documentary begins with an introduction to Harry Markopolos and his former coworkers Frank Casey and Neil Chelo. The three men work in finance, with investment portfolios. They were aware that in the finance industry there was much talk about an investment company making their customers high returns. Casey came across some investment information from a client of Madoff and gives the information to Markopolos to look over.

    Read More

  • Wells Fargo Ethical Theories

    468 Words  | 2 Pages

    Recently Wells Fargo’s scandal of creating phony accounts has raised ethical concerns in the corporate world. Wells Fargo employees opened more than two million unauthorized bank and credit card accounts to meet sales projections. The company was charged with huge fines and earned a bad reputation that will take years to rebuild. According to the Deontological perspective on ethics least some acts are morally obligatory.

    Read More

  • Ethics And Moral Issues In The Enron Scandal

    931 Words  | 4 Pages

    In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .

    Read More

  • Apple Business Ethics Case Study

    1848 Words  | 8 Pages

    • “Side Deals or Side Letters” : Every piece of business dealt by Apple must be in clear written form and should not be altered by means of mouth or writing after the day it goes into effect. Then aside from these specific laws, Apple’s Business Conduct also has sections detailing basic borders for legal behavior, like a section prohibiting corruption practices like “Money Laundering”. “Governments as Customers” In addition to their dedication to the customers as a stakeholder, Apple’s Business Conduct has an entire section dedicated to clarifying the ways in which business should be conducted between Apple and the governments and how to stay ethical in such transactions. • “Governments as Customers”: Before bidding for government business,

    Read More

  • Stakeholder Theory

    997 Words  | 4 Pages

    The History of Business Ethics and Stakeholder Theory in America Ethics play a huge role in the global business field, since considerations have to be made on moral practices, values, and judgments that govern the direction and overall success of the company. Consequently, over the progression of history, managers, entrepreneurs, and stakeholders at the helm of organizations have always had the mandate of making moral resolves on matters of ethics. According to Hunter (2003), such an approach to ethical behavior prompts a substantial growth in the organizational corporation, as well as maximizing business profits, and creating a reputable company image (Cutler, 2004). Notably, the overall performances of organizations that take part in unethical

    Read More

  • Essay On Ethical Leadership

    1451 Words  | 6 Pages

    What is Ethical Leadership some may ask. It is leadership that shows through the actions of having respect for ethical beliefs and values, and for the dignity and rights of others. Ethics is associated with the morals and values an individual finds desirable. It is a philosophical term originating from Greek word “ethos” meaning custom or character. While in the United States Marine Corps, the definition of ethics in an organizational setting was as follows:

    Read More

  • The Worldcom Fraud Case

    2107 Words  | 9 Pages

    Background WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.

    Read More

  • Literature Review On Unethical Behavior

    2877 Words  | 12 Pages

    Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.

    Read More

More about Key Ethical Problems Of Adelphia Communications

Open Document