A tort is a civil wrong committed by a person or entity against another entity or person. The aim of torts is to impose liability on the person (natural or corporate) responsible for the act. In contrast, corporate crime occurs when a corporate activity causes injuries, death, and other wrongs. This essay explores the implications of committing company negligence, and ways in which liability is imposed when company crime occurs.This essay first analyses the implications of negligence committed by a company employee who is also a director. Likewise, the consequences of negligence committed by a company employee who is also a shareholder, is discussed.
In addition, as a group effort, the defendants not only participated with the fraud, but encouraged the continuation of the malpractice going on. Sky Capital may not have been created for the sole purpose of using deceptive business practices, but because of the group effort made by the defendants the company as a whole could not be trusted to make any ethical decisions in favor of society. The impact Sky Capital and its defendants imposed on what business ethics and professional responsibility stands for shows in a very negative light, however if the group effort made was without the ethical blind spot and favored the trust of their customers with positive and lawful business practices the
This shows that they have violated several accounting laws, bent the accounting rules so that they can satisfy their own desires of profit in the short term however they have neglected the consequences that would come after their investors, stockholders, employees and the itself. When this case was found out, other accounting firms had blamed the accountants of Enron for the scandal in hiding the claim of the mischief. The relationships that Enron had with Arthur Anderson, Enron’s auditor and consultant, had made it too easy for them to collaborate together in covering up financial losses and debt. Anderson was responsible for some of Enron’s internal accounting control thus this made some of Anderson’s employees leave to work for Enron and as a result of this, many of the losses Enron encountered were not reported in its financial statements. However, after a series of irregular accounting procedures and was revealed that their profits and revenue were the result of certain ‘deals’ with other companies, Enron has started to plunge and in November 2001, it is been told that the company was undergoing the largest bankruptcy in U.S
When this lack became public, it will lead the company to lose credibility. It also can be very detrimental to a business. Ethic and unethical decision-making can impact a business in more negative ways than positive.” Fundamental ethical issues include concepts such and integrity and trust, but more complex issue include accommodating diversity, decision-making compliance.” Retrieved from http://smallbusiness.chron.com Business should integrated those concepts to avoid legal problem and do not damage the
which will influence them in the decision-making process. It was stated that the Castle Corporation lost a considerable amount on the sale of some equipment it had to replace. Battle knows the losses cannot be reported as an unusual item. Additionally, she does not want to highlight it as a material loss because it would cause the company financial statement to reflect poorly. Also, she reasons that recording more depreciation of assets wouldn’t have caused the loss to be so great.
I would argue that Wal-Mart’s employment practices are immoral based on different philosophies which are utilitarianism and justice. Utilitarianism seeks the greatest good for the greatest number of people. The “good” here can be referring to “happiness” (Fraedrich, 2013). Based on utilitarianism, Wal-Mart’s ethical standard is immoral as the consequences failed to benefit the employees. Although by underpaying the employees, the stakeholders would gain more profits, however it has resulted in significant unhappiness among the majority of the employees.
• Corporate Angle The managers attributed to the company as the shareholders of Enron didn’t realize the matter from superficial high stock price. Thus, the whole company was not responsible for the scandal. The board and the other shareholders paid lots of attention to the decisions made by the CEO’s, CFO’s and the relevant staffs as Enron avoided this results (Software Engineering Institute,
The reason is that duty-based ethics is that the intent of an action. Here, those businesses they don’t want and indeed not provide the services to certain groups of people. This situation is totally different from they don't have the ability to do so. And what is worse, if we judge this case by outcome-based ethics, the result we get is still the same: their behavior is morally bad. In this judgement, we don't care about why or why not those businesses in wedding industry they don't want to serve gay or lesbian’s wedding.
Objectivity states that members must not compromise their professional or business judgement because of bias, conflict of interest or the undue influence of others. Providing misleading information (Langfield Smith, 2015). Providing misleading information and supporting Richard department will be considered to be unfair and bias. Priscilla should make decision that is in the best interest of the company and avoid any bias judgement due to her personal relationship with
The plaintiff paid a sum of RM 90, 000 to sign up for membership at the resort. Subsequently, the plaintiff was disappointed with the facilities provided. Therefore he lodged a complaint with the defendant concerning the non-existence of some of the listed facilities and sought rescission of the membership agreement and damages based on misrepresentation. In this case, the High Court held that the defendant had breached its representation to provide a library despite the fact that the plaintiff had suffered no real loss or damage. In addition, although there were misrepresentations on some of the other facilities, they were not matters of major conclusive thought to the plaintiff in his decision to enroll in a membership in the club.