Gary Winnick founded Global Crossing in 1997, observing the surge in telecommunications of the 1990’s and utilising it to construct the largest fibre optic network in the world for the purposes of transmission of voice, text, video and other data between 27 countries. The Company went public in 1997, with Winnick maintaining hold of 27% of stock in the company valued at $1.4 billion, and a year later held a market value of £38 billion surpassing Ford Motors. Winnick employed the services of Salomon Smith Barney, who employed an analyst with unprecedented level sof influence of the telecoms industry, Jack Grubman. After a year of low revenues and lackluster of cash flow, Winnick sought to emulate WorldCom with its acquisition based business model. Hiring former AT&T executive Robert Annunziata as a new to lend credence to his company’s respectability he entered into negotiations to purchase long distance provider Frontier for $11.2 billion, followed in the next quarter by the announcement of a deal of $37 billion to buy US West which ultimately fell through after losing out to Qwest. The acquisitions were meant to provide cash flow and raise the awareness and respectability of Global Crossing, allowing Winnick’s stake in Global crossing to grow in excess of $4.5 billion. In 1999 Winnick abandoned his previous plan to raise capital for the company piecemeal and moved to fund the fibre network at once utilising junk bond sales set up by Jimmy Lee of JP Morgan Chase. Winnick not only benefitted as a shareholder, but also banked fees through his holding company and its subsidiaries for example 2% of the gross revenues of Global Crossing was paid in return for a long term consultancy deal with PCG Telecoms a subsidiary of Winnick’s Paci... ... middle of paper ... ...help develop an action plan to reorganise the company and make good on his pledge to donate $25million further to aid employees who had lost money in Global Crossings pension plan. Winnick has since moved on and founded a new company iCrete a firm designing precision concrete for use in projects such as the Freedom Tower, New York. Works Cited http://money.cnn.com/magazines/fortune/fortune_archive/2002/06/24/325183/ http://observer.com/2002/04/gary-winnick-should-go-to-jail/ http://www.fiercetelecom.com/special-reports/who-were-worst-wireline-ceos-all-time/gary-winnick-global-crossing http://www.fraudlaw.org/Fraud/Fraud%20by%20Type/Public%20Companies/Global%20Crossing/Global%20Crossing%20settles.htm http://www.crn.com/news/channel-programs/18820983/global-crossing-chairman-gary-winnick-to-resign-from-board.htm http://www.forbes.com/forbes/1999/0419/6308242a.html
As a result, GM’s developer Edward Cole was well aware of the major design defect of the excessive weight in the rear causing General Motors to face 106 Corvair liability lawsuits involving injuries and death. After the publication of Nader’s book General Motors hired a private detective in New York to gather information and discredit Nader. Nader sued General Motors for invasion of privacy winning millions in the lawsuit. Furthermore, CEO James Roche promoted Edward Cole the Corvair design engineer in question, to GM’s President. Did the CEO Roche of General Motors make a sound ethical decision with the promotion?
On my quest to explore Christianity, I met a gentleman whose family operates a Muscadine grape business. He happens to be my Sunday school teacher. He asked if I would be willing to sell them at my store. I was interested, and I started promoting the grapes, and the products through their seeds. I personally invested a lot of time in the product by exposing it to my customers. The product became a hot commodity, and over time, I placed regular, increasing phone orders, and I began investing heavily in advertising for the Muscadine products at my store. I sometimes pay my invoices 15 to 30 days late however, that never seems to be a problem as he never charged me any late fees. I wanted our business to be formal so, I typed up a contract to
The co-founder, Mark Butler, owes a major note to the other original partner, who Mark bought out. He has a mortgage on his 12-year-old house and no other significant investments. Mark’s personal references indicate that he is hard-working and watches his business very closely.
Ethics in business is important of everyday moral and ethical norms to business. Perhaps, the Ten Commandments from Bible come to mind as an example of morality that still used by many today. These commandments carry concept of being truthful and honest, and try to stay away from theft and greed. An idea of stewardship can be found in the Bible as well as many other religious literatures that can be and have been applied to business.
Business ethics is a diverse field that cannot be defined with a single definition. This area addresses numerous issues, problems, and dilemmas within the management of businesses. Does this through numerous perspectives and methods. Of course, in order to present the complexities of business ethics, we must explore the types of issues that business professionals are continuously confronted with. To understand one must
Background One. Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of the telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than profit the company (Cook, 2001). Initially, One.
Allen Kaufman, Lawrence Zacharias, and Marvin Karson, Managers vs. Owners: The Struggle for Corporate Control in American Democracy (New York: Oxford University Press, 1995.
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil
Explain the connection between the economic model of corporate social responsibility and “free market” or “neoclassical” economic theory.
A company's code of ethics is very important to establishing the expectations and quality of its brand. The code of ethics are concrete expectations for employee behavior, accountability and communicates the ethical policy of a company to its partners and clients. A good business practice is to have sound ethics. Having good ethical practice is knowing the difference between right and wrong and choosing what the right thing is. Though good ethical behavior is something that should be done automatically, a company needs to have a set of rules in place that holds everyone accountable. Over the last twenty years, the country has been bombarded with company scandals and unethical behavior; though morally wrong, the punishment does not fit the crime. The punishments have been overkill. A murderer, rapist, or child molester commits violent crimes and potentially is out of jail in 10 - 20 years. The CEO’s that commit white collar crime receive 25 years to life; this paper will discuss how this punishment for committing nonviolent crimes, such as breaching a company’s code of ethics, are disproportionate to violent crimes that plague the country today.
As a new member of the Company X family, there are sets of rules and regulations that every employee must adhere to in order to be successful while performing daily duties, maintain safety within the working environment, and positively contribute to the progress of the company. Standards and procedures are set forth by the company’s leadership as an effort to ensure safety and productivity of employees. Each employee must:
The notion of ethics deals with people’s behaviors within a company. Social responsibility involves a company’s moral obligations and the manner in which the organization makes its decisions. Although ethics and social responsibility are similar on a conceptual basis, each has its own unique characteristics that express their differences and its independence of the other. Ethics and social responsibility have to be present and coincide with one another for a business to be ethically sound.
The textbook defines business ethics as “the accepted principles of right or wrong governing the conduct of business people.” Business ethics also govern the members of a profession and the actions of an organization. Many organizations put into place an ethical strategy which is “a course of action that does not violate accepted principles.” These principles are used to guide organizations and employees to make the right decisions.
Later that year, Dennis Kozlowski resigned. In September of 2002 then-former CEO Dennis Kozlowski, former CFO Mark Swartz, and former General Counsel Mark Belnick were sued for accounting frauds. In 2005 both Dennis Kozlowski and Mark Swartz were sentenced to 8 to 25 years in prison.
Mondi also protects high conservation value ecosystems, including wetlands. Social Responsibility- Mondi engages with communities in and around their plantation forests and mills. Their social investments help drive development by focusing on health, education and local enterprise. Business ethics-