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