In the situation between Boeing and McDonnell Douglas, the stakeholders would be the employees and investors of both companies. These individuals would be the stakeholders because they are the individuals who have an interest in the success and failure of the company. In the end of the situation, it states that after the $2.6 billion write-off due to cost overruns was announced, Boeing’s stock price had fallen 20%. This being because less people wanted to buy stock from this company due to the unethical practices and high cost overruns. Even though some investors left the company, McDonnell Douglas couldn’t because of their deal with Boeing.
It is observed by researches and analysts that unethical business and accounting decision has took place in Enron Company especially CFO Jeffrey Skilling and CEO Ken Lay who played major roles in this scandal. Enron involved in business risks like fraud and the company failure happened when it entered into conservative transactions. The problem Enron faced was that they treated their loans as revenues yet it is not shown in the balance sheet, in other words, Enron did not treat them as current liabilities such as accounts payable so they did not show their creditors as liabilities, which had mislead their customers and investors. Because the company had taken the help from others in hiding a large amount of company debt (partnerships with various
The senior executives had to know what they were doing was wrong so their was no excuse for it. The Peregrine Systems Inc. Scandal affected the business community by showing how the SEC will find anything that is unethical that is going. It shows that businesses should not even chance the idea of falsifying their financial statements, because somehow they would be caught. Also the affected the general public by believing that there were a good amount of people who had stocks invested in Peregrine Systems, especially when they say the company’s stock was increasing. However once the investigation started the stocks of Peregrine plummeted and thousands of people lost a large amount of
Martha Stewart’s damaged reputation from a financial tip Valerie Gonzalez Our Lady of the Lake University Martha Stewart’s Damaged Reputation from a financial Tip The practice of buying and selling stocks in the financial market is always said to be a tough one to learn and understand for good reasons. The basics of this system are that individuals can invest in certain businesses and become a partial owner of said company or companies. If something goes wrong, the investor could go through several negative consequences: the least would be the person would not gain any money with some losses from fees, make major losses, or could get them and their investment team into so much legal trouble. For the latter, it is more shown in this example
Conflicting Interest: It has been suggested that conflicts of interest and a lack of independent oversight of management by Enron's board contributed to the firm's collapse. Moreover, some have suggested that Enron's compensation policies engendered a myopic focus on earnings growth and stock price. In addition, recent regulatory changes have focused on enhancing the accounting for SPEs and strengthening internal accounting and control systems. We review these issues, beginning with Enron's board. The conflict of interest between the two roles played by Arthur Andersen, as auditor but also as consultant to Enron.
The audit firm of Barings, Deloitte & Touche failing to spot the activities of Nick Leeson when performed audit jobs. Deloitte & Touche, which audited the accounts of Barings Futures Singapore, fail to detect "window dressing" in the accounts and signs of unauthorised trading. Deloitte & Touche have not investigated further and revealed Leeson 's unauthorised trading even though BFS 's balance sheet showed the company had deposited more margins with the Singapore futures exchange than it had received from its customers as it was an indication of unauthorised trading. Although the audit team have it own responsibility to prevent the collapse of Barings but most of the fault for Barings ' collapse lay with the bank itself. 1.
Bribery kills the moral fabric of the society and causes confusion on the business ethics and reputation of a company that is caught in the act. This can result in loss of confidence in the company by members of the public and can also lead to loss of business investment. Waste of resources happen when the resources of the organization are used to achieve better things will be spent on trying to secure business benefits by paying bribes. Bribery may not produce the potential people and the person not necessarily the most qualified person for the job. It will lead to perform poorly in organization if not paying bribes.
They tend to sacrifice the quality of financial reporting information for their personal interest. In this case, Tyco International failed to give true financial picture for several years. Dennis Kozlowski, Mark Swartz and Mark A. Belnick were those Tyco’s executives who committed fraud by charged with falsifying business record to conceal a great amount of loan without approval. Besides, it had been found out that Tyco engaged in “financial gimmicky” to
(2010, cited in Antonioni, 1998), the excellent work outcomes are associated with the extroversion personality. Because the high-level extroversion brings him optimistic effects and personal energy. The second strength of him is his ability to socialize with the clients in order to build strong relationships with them. Spake