An example of corporate responsibility involves falsifying information by FirstEnergy's Davis-Besse Power Plant personnel , revealing serious infractions and a cover up. Inspections revealed several cracks and defects in critical components. This incident resulted in FirstEnergy being “fined $5.45 million dollars, the largest single fine imposed by the NRC [U.S. Nuclear Regulatory Commission]. They would eventually pay $33.5 million in fines.” This also resulted in two employees being “fired by FirstEnergy Corporations... They would be the only two convicted of deception charges.”
JSTOR, JSTOR, www.jstor.org/stable/43629104. Hollis, Stephanie J. “The Pentangle Knight: ‘Sir Gawain and the Green Knight.’” The Chaucer Review, vol. 15, no. 3, 1981, pp. 267–281. JSTOR, JSTOR, www.jstor.org/stable/25093761. LEIGHTON, J. M. “CHRISTIAN AND PAGAN SYMBOLISM AND RITUAL IN 'SIR GAWAIN AND THE GREEN KNIGHT'.”
Therefore, the financial results were distorted by executives in order to show that the expectations of the top management were met. Toshiba is a publicly traded company and has many local and foreign investors. All the investors invested in Toshiba shares faced with a huge loss of wealth due to around 50% decline in the company share prices. 3. Actions Taken to Recover the Company from the Scandal
Lay took up the reins at Enron in 1986 after it was formed from the merger of two pipeline firms in Texas and Nebraska. Prior to Enron’s collapse, he was credited with building Enron's success. Lay resigned as CEO in December 2000, and was replaced by Jeffrey Skilling. In August 2001, he resumed leadership after Skilling resigned. Lay resigned again in January 2002 after becoming the focus of the anger of employees, stockholders and pension fund holders who lost billions of dollars in this disaster.
Enron’s CEO, Ken Lay, retired in February giving the position to Jeff Skilling who then retired shortly after in the summer. Around the same time, Enron’s stock began to drop. “The stock descended to a 52-week low of $39.95. By Oct. 16, the company reported its first quarterly loss” (Segal, 2018). Enron would eventually catch the attention of the SEC after closing down one of its SPVs.
In less than an year after the offering of May 2004, on March 31, 2005, Feltex declared a reduction of the profit forecast to from a high of $23.9 million to a mere $15–$16 million. Consequently, by March 2006, the value of the shares fell from $1.70 per share (which was the initial purchase price), to as low as $0.60 per share. The company soon went into liquidation in December 2006. By this time all the shareholders’ equity had disappeared and the creditors were left with claims approximating to around $30–$40
Rugani D. TWENTY-FIRST CENTURY EQUITY: TAILORING THE CORPORATE VEIL PIERCING DOCTRINE TO LIMITED LIABILITY COMPANIES IN NORTH CAROLINA. Wake Forest Law Review [serial on the Internet]. (2012, Fall2012), [cited August 7, 2015]; 47(4): 899-920. Available from: Business Source Complete.
“Legislation in 1995 was passed shielding companies and accountants from investor lawsuits, and in 2000 regulators were forced to dilute proposed restrictions on accountants” (David Friedrichs, Paradigmatic White Collar Crime Cases For The New Century, Critical Criminology, Pg 117, Para 2). First of two another notable cases was WorldCom, which topped over 11 billion dollars resulting in the company to file for bankruptcy in July 2002, the scandal is now referred to as the biggest accounting scam ever. The second case was Global Crossings, which was accused of falsifying financial reports to hide their losses. The founder, Gary Winnick was not prosecuted for company indiscretions for causing Public Employees Retirement System of Ohio and the State Teachers Retirement System of Ohio in losing 110 million in 2002. All of these cases represent how political society creates the “atmosphere” where these companies believe they can be above the structural level of laws, because create networks where they thrive sometimes illegal.