They issued debt securities in the capital markets with short maturities to obtain the funds necessary to make loans to their customers. Since the loans to their customers had longer-term maturities than their debt securities, Icelandic banks were extremely vulnerable if their credit ratings were lowered or turbulence in the capital markets prevented them from issuing debt securities. Iceland’s small size and sparse population made it difficult for the banks to collect domestic retail deposits. Thus, to feed their insatiable appetite for capital, the banks started to look elsewhere for deposits and ultimately opening online savings branches across northern Europe most notably in the UK and the Netherlands. In a 5 year period the banks’ were able to accumulate liabilities of 10 times the GDP or $120 billion and by the second quarter of 2008, Iceland’s external debt was 9.553 trillion Icelandic Kronur (€ 50 billion), more than 80% of which was held by the banking sector.
The researchers did not explain to the participants the processes in conducting the experiment. The participants were not informed that they would be arrested by cops in their homes. Another unethical practice was the breach of a contract signed between the participants and the researchers. It was unethical because the participants were taken their rights to object from the harassment of the guards. Zimbardo acted as a prison warden instead of reminding the guards that they should not abuse the
The analytical study of Altman Z score on nifty 50 companies SANESH.C Assistant Professor Sri Vyasa Nss College Wadakkanchery ,Thrissur Abstract Stock market investments are subject to market risks and there is a possibility for loosing of all the money invested. Investment decisions are so crucial for a successful investor. Investors are using different techniques for stock selection and for investment. The Altman Z-score is a widely used measure that applies an algorithm that has been found to have useful predictive value on the likelihood of a business going bankrupt. In this paper trying to assess the Altman Z-score of nifty 50 companies excluding banks and financial companies.
This suggests that when the victim is unknown or there is no interaction with the actual corporation, the attitudes towards committing the crime is more positive (Heath, 2008). As well, many of the people involved will turn the situation around and make themselves out to be the victim to manipulate certain ridicule if they are caught (Heath, 2008). In condemning the condemners, the legitimacy of law or policy those being charged under is called into question, while the most common response as to justifying the reason corporate crimes happen, involves appealing to higher loyalties like family, or for the best intentions of the corporation (Heath, 2008). Neutralization theory an at minimum, can explain certain reasonings for computer crimes such as child luring. In 2009, D’Ovidio et al.
This is beneficial to the competing businesses involved in price fixing as they no longer need to compete. However, stakeholder’s such as consumers are disadvantaged as they now have to pay a higher price for goods and services. Another unethical behaviour carried out in the film is by Mark Whitacre, who participated unauthorised payments whereby he forged signatures and collected five hundred thousand dollars via cheques. This is an illegal act and therefore is seen as
Going Concern During the 1970s SSAP 2 identified going concern. Going concern is one of the main fundamental accounting principles. Going concern is an assumption that businesses will remain active in the foreseeable future. As a result of this assumption accountants can defer recognised expenses at a later point. Going Concern is the process of distinguishing between capital and revenue expenditures.
Cendant made EY believe that their financial paperwork was complying with GAAP and not in an unethical manner as it was truly seen at the end of the case. This proves that throughout the case, Cendant Corporation wasn’t acting fully ethical nor with the desired fiduciary actions to their investors and the auditing team in this case being Ernst&Young. Aside from the trust being broken apart between both, there was never a sign of an internal control inside Cedant. Therefore, there shows that the corporate governance for Cendant Corporation didn’t have signs of existence as well. Most frauds that were occurring before the implementation of the SOX-2002, had top management such as in Cendant that didn’t have care for the ethical performances as much as in today’s corporate world with more regulations in hand by the government.
The motivations of individuals who engage in unethical conduct in an organization is usually caused by a poorly designed incentive system. These motives are usually related to external rewards such as: money compensations, praises, and fame. In the case of Société Générale, Kerviel possessed similar motivations, which were the reasons why he conducted unethical activities. The main motives that drove Kerviel were recognition and fame. The London Times commented on Kerviel as “an average guy” with “mediocre abilities and limited experience”; however, Kerviel wanted to be noticed and to show that he was as good as “the golden boys”.
The evidence of why Bee was unjust is because the pastor was breaking the law of that system, which specifically stated that the Shouter Baptist religion is not to be practiced by any people under the British colony. Sandel wrote a book about justice and he explains that “laws cannot banish greed, but they can at least restrain its most brazen expression, and signal society’s disapproval of it” (Sandel pg 8). According to Sandel, the laws are made by the community and it is the community’s decision to judge on what actions are just or unjust. The advantage of having laws is that it gives the people structure in a community, but the disadvantage of having laws is that it could potentially ruin people’s freedom. In the Wine of Astonishment, the villagers in Bonasse were banned from practicing their own religion because of the laws of the Crown Colony system.