Reason / Background
The major downfall and/or reorganization of companies have cost: lost securities, downsized or vacancies in employment, lost or minimized retirements, and assisted in the economic recession. The following companies have been involved in varying experiences that led to financial improprieties and unethical decisions.
Enron “Boosted profits and hid debts totaling over $1 billion by improperly using off-the-books partnerships; manipulated the Texas power market; bribed foreign governments to win contracts abroad; manipulated California energy market” (Brag, 2002, para. 9). The behavior exhibited by Enron’s former CEO Kenneth Lay showed that large and successful appearing companies are not exempt from human error. This human error caused unethical decisions to be made that adversely affected thousands of lives.
WorldCom’s lack of corporate governance and questionable financial follies led to “Overstated cash flow by booking $3.8 billion in operating expenses as capital expenses; gave founder Bernard Ebbers $400 million in off-the-books loans” (Brag, 2002, para. 21). This unethical behavior led to even more financial losses after further investigations, and resulted in billions of dollars in losses...
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... (2008). Retrieved from http://www.caslon.com.au/whistlecasesnote.htm#xerox
Hansen, K. O., Valesquez, M., Moberg, D., & Calkins, M. (n.d). What Really Went Wrong With Enron? A Culture of Evil?. Retrieved from http://www.scu.edu/ethics/publications/ethicalperspectives/enronpanel.html
Kotz, D. H. (2010, March 29). Assessment of the SEC’s Bounty Program (Assessment United States Security and Exchange Commission 474). Retrieved from Security and Exchange Commission: http://www.sec-oig.gov/reports/auditsinspections/2010/474.pdf
Lyke, B., & Jickling, M. (2002, August 29). WorldCom: The Accounting Scandal (Report). Retrieved from U.S Department of State: http://fpc.state.gov/documents/organization/13384.pdf
Retrieved from http://money.cnn.com/2005/06/17/news/newsmakers/tyco_trialoutcome/index.htm
Retrieved from http://www.forbes.com/2002/07/25/accountingtracker.html
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