This lawsuit blames WorldCom of unfairly exploiting the telecoms regulations at the expense of its competitors. Detailed Analysis: The WorldCom case has become a kind of typical case of corporate governance failures. The world’s second largest telecommunications company WorldCom after the disclosure of massive accounting irregularities, filed for bankruptcy in the federal court in Manhattan in 2002. It provides a genuine case study in the failure of corporate governance and suggests a number of lessons in how to avoid its repetition. The fraud within WorldCom consisted of a number of so called “topside adjustments” to accounting entries to falsify declining earnings.
In the article, Duska uses many exemplifications to prove his audience there are many ways that lead to unethical decisions in business. Duska states blindly obey authority is one of the reasons that leads to a good person does bad thing. He uses a real life example that we heard about bank Wells Fargo a few years ago to illustrate how good people turn out do bad things because of docility. Tellers at Wells Fargo are not really bad people but they obey their boss order to open accounts for clients without caring about their benefits and problems. In this case, they make the unethical decision in business (p.27).
The ethical issues that are presented in this case pertains to the fact that colleges are hiring felons to speak to college students. This may seem as an ethical issue due to the fact that the felons were the one who committed these unethical actions in the first place. Thus, there are many critics who believe that felons should not be speaking about this topic. There is also an issue with them getting paid and other business executives not being paid to do the same job. 2.
He should not have gone out of his way to make his advisors steal with the risk of getting caught. If he was that desperate for a better campaign, then he probably would not have won in the first place without breaking in. I do agree with the advisors or aides getting punished for their actions. I do not however, agree with Nixon getting pardoned from the punishments. Gerald Ford shouldn’t of let him get away with it.
Citron began gambling county funds on risky investments, which paid off until 1994 when those risky investments did not pan out handing the county a one-in-a-half-billion-dollar bill owed. When the citizens of Orange County refused to agree to raise taxes, the state legislator had to step in and bailout the Orange County. The debt Orange County has accumulated and defaulted make the county and the surrounding counties undesirable for business and economic growth. Citron plead “guilty to six felony counts,” served a year under house arrest, and was fined 100,000 dollars; and the county and surrounding countries suffered financially and status (Shafritz and Borick 2011, 99). The county also
Over $56 billion dollars was made from World War II and most companies used unethical business practices to get that money. Businesses did not care that America was in the biggest war yet or that America needed supplies to win the war. Businesses still charged the government normal prices and even raised prices in some cases to raise their profits. ?The 200 largest steel corporations more than doubled their annual profits during the war? (Thorne 190).
Asset forfeiture can be used to fund government programs which can be a great benefit to the public and is considered necessary to thwart criminal activity. Financial incentives for asset forfeiture are the government’s way of motiving law enforcements to actively fight for anti-drug policies. There are still inherent flaws that need to be addressed with asset forfeiture laws. Innocent property owners have little protection from forfeiture. A study about plaintiffs of forfeiture cases show “the finding that most appeals are lost was not surprising as previous research examining litigation challenging police actions has found that plaintiffs have a difficult time winning” (Gabbidon 59) There are also no proper restrictions for law enforcements abusing civil forfeiture.
Wells Fargo executives were notable mainly in their inertia although there existed years of evidence that a policy coming from the top level was driving abusive/illegal practices & irregularities at the Bank. In 2013, when the Los Angeles Times reported that fake accounts were opened by the employees to fulfill unrealistic sales objectives; and in 2016 (September), when the Bank admitted that its employees has created more than 2 million phony accounts and then agreed to pay a fine of $185 million, none of the senior executives went into an action. They decided to take back some of CEO Stumpf’s compensation only after he was reprehended in congressional hearings. Still, they never fired him - he resigned on his own.3 Wells Fargo board acted as if it were asleep in the early fall and had been too trusting of management. Corporate boards are failing at their job of overseeing management.
Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making. It shows how the fraud was detected and the accounting practices that were used at the time, how the director
CitiBank Deciding to spend $50 million on a new private jet after taking $45 billion in taxpayer funds to stay afloat, as Citibank did is a textbook example of bad business ethics. To make matters worse for CitiBank, CEO Vikram Pandit lied to Congress that he received a compensation of one million a year when the actual figure was $11 million.Companies indulge in unethical business conduct primarily to maximize profits. However, rubbing customers and other stakeholders the wrong way in the quest to maximize profits can be self-defeating and lead to loss of valuable