During the summer and fall of 2014, Sirius XM, an American satellite radio broadcasting company, was found guilty of consumer fraud. The company’s means of fraud included, but was not limited to, misleading advertisements and unfulfilled promises. After many consumer complaints, the issue was taken to court. There, 45 United States Attorney Generals announced that Sirius XM Satellite Radio was guilty of misleading, unfair, and deceptive practices which violated state consumer protection laws (Hood, 2014). During the act of defrauding customers, the company also engaged in unethical business behaviors. Due to the fraudulent and unethical decisions and actions made by Sirius XM, the company will most likely forever be looked at through a different …show more content…
Given the amount of complaints filed by many Sirius XM consumers, it is fair to state that a majority, if not all, affected subscribers agree that Sirius XM’s actions fell under the umbrella of consumer fraud. Subscribers would also agree that the company’s actions were unethical, given the fact that they knowingly embezzled $3.8 billion from their customers (Hood, 2014). As for Sirius XM’s perspective, they knew their business practices were wrong, yet they continued to short their customers anyways. In cases where businesses commit consumer fraud, they often believe that it is worth shortening their customers in order to gain additional profit (Jacoby & Meyers, n.d.). This was exactly the case for Sirius XM. Rather than focusing on how they were harming their customers through the use of consumer fraud, the satellite-radio company realized how much additional profit they could potentially make. Even if Sirius XM attempted to argue that they did not know they were committing consumer fraud, it would be known that the company was lying. As any business, let alone a very large and well-known business, it would be very hard to embezzle billions of dollars from consumers without the workers of the company or the company as a whole knowing. With the amount of Sirius XM workers responsible for the company’s accounting, it is almost impossible that over 3 billion dollars was unknowingly gained as profit. Sirius XM obviously knew and planned to embezzle this money from their subscribers, regardless of whether they admitted their wrongs or attempted to claim the embezzlement was an accident. Due to the fact that Sirius XM purposefully committed this illegal crime and victimized their own consumers, it can easily be concluded that their actions were without a doubt
The U.S. constitution and the Sherman Anti-Trust act has very little to do with laws but more so to eliminate the concept of no competition. If the merger between XM and Sirius was approved, it would be allowing two large corporate entities that have already established a large portion of the customer base within their field of expertise.
I am writing to address some concerns I have about the future of your company, Martha Stewart Omnimedia (MSO). Perhaps the one issue that you are grappling with at present is about the Imclone scandal. You have been accused of selling $227,000 worth of Imclone stock based on inside information. Because of these charges of insider trading, your critics have summarily associated you with other disgraced company directors: Kenneth Lay of Enron and Bernard Ebbers of WorldCom. But the strange thing about your case is that while other CEOs have been charged for making use of their own companies to gain profit for themselves, you, on the other hand, have not purposefully misled investors or doctored MSO’s accounts.
B) The critical issue is that Comcast, the biggest internet and cable provider in the nation, is seeking to become even bigger in merging with Time Warner Cable, the second biggest company in the market. This merger will increase the influence Comcast has on TV channels and internet content providers, leaving consumers with fewer alternatives and will reduce competition to the amount where Comcast will control two thirds’ of the cable TV market and about 40% of ...
*Brand Reputation: XM enjoyed the #1 position for quite some time until Sirius obtained a contract from Howard Stern, this move eventual put the companies neck and neck in comparison.
Satellite radio is a technology that provides a radically new way to listen to radio. XM’s service makes use of advanced satellite capabilities and elaborates terrestrial receiver architecture to deliver a wide array of high quality radio programming nationwide. In early 1998, Robert Acker, director of strategic planning at XM, needs to develop a marketing strategy for this new radio service. There are several decisions that need to be made by the company in order to finalize the business plan. At fist XM needs to decide which of two business models to pursue, whether emphasis should be placed on charging customers a monthly subscription fee, or whether to rely more on earning revenue through advertising. In addressing this problem, management must consider the value that XM radio could propose for different consumer segments as compared with existing modes of radio (AM, FM) and in relation to its sole competitor in satellite radio – SIRIUS. Besides choosing a business model there is also a need to explore how best to approach and leverage manufacturer and channel partners, considering high unknown and high-risk technology. The purpose of this report is to analyze possibilities and outline possible recommendation on strategies for XM Radio. The following areas will be examined:
-The main advantage that Sirius Xm satellite radio has over its competitors are the commercial free programs that they offer. Most of us think that terrestrial radio is free of charge, not thinking of all the time we consume listening to the commercial. We pay these radios with our time. On the other hand most of the incomes of Sirius Xm comes from its listeners, not from advertisers, making it possible for them to avoid commercials. We believe that commercial-free programs are a very important key
Sirius faces competition for both listeners and advertising dollars. In addition to pre-recorded entertainment purchased or paying in cars, homes and using portable players, Sirius competes most directly with the following providers of radio or other audio services:
I understand that companies such as Avid Life Media only provide the services for consumers to enjoy. So, it is up to the customer to decide if they want to interact with companies that provide products or services deemed socially irresponsible by some groups. I think the Avid Life Media Company promote values that diminish the integrity of their organization as well as stakeholders. Decisions made by people within the organization have inferences for shareholders, employees, consumers, and community (Ferrell, Fraedrich, & Ferrell, 2013). Avid Life Media provide services that openly support individuals who participate in infidelity acts. The company commits unacceptable behaviors such as providing people with an email address that their spouses
...ces and the tough decisions executives must make between the delicate balance of production costs and quality. We learned a lot through this case, including the process following the unearthing of a large-scale fraud by a leading baby food producer. Even though the executives and the company got away with their fraudulent behavior for a good amount of time, eventually their actions were brought to light and not only did they face the consequences of their actions, the company’s reputation suffered tremendously due to their choices. Additionally, we gained a greater understanding of the fraud triangle and how intense external and internal pressure can create the need to make unethical decisions. Lastly, we learned that fraud does not only consist of the misappropriation of assets. In this case the fraud was purposeful misrepresentation of information and not assets.
CEO Kenneth Lay’s ambition for ENRON a company he had helped form went beyond the business of piping gas. Enron went to become the largest natural gas merchant in North America and the United Kingdom. But the reality is, this company business model never worked. This was a company that was so desperate to win Wall Street 's respect that it kept it stocks shares prices going up despite the losses it was incurring in order for executives to keep lining their own pockets. Over the course of this Case Assignment, I will identify the examples of financial reporting misconduct, I will explain the deontological as well as a utilitarian ethical perspective and lastly I will identify the stakeholders likely to be affected by that misconduct.
James G. Skakoon, W. J. King and Alan Sklar (2007). The Unwritten Laws of Business. /: Tantor Media.
To conclude business organizations do not have the right to deceive individuals and consumers in specific because Albert Carr’s claim that business is a game cannot be justifiable and supported with reasons that may harm or the community and its people. However, I do believe that business organizations should be socially responsible and that would help them maximize profits in the long run (Lauren, 2011)
By influencing the market falsely is unethical and wrong. That is also why their punishment was so harsh.
The twenty year journey of Blockbuster has not been without bumps, valleys, road blocks, and detours. Blockbuster has come under legal fire from Netflix, a major online competitor, the Free Trade Commission for attempting a host...
According to Kantooz and O’ Donnell, the principles of management are the fundamental truth of general validity, in which these truths are the guiding foundations in executing of the management functions and solution to problems that may arise (Gupta, 2009). Management, like every form of social science, has a developed set of principles, as management is also considered a type of social science, therefore has developed a number of principles of management. A famous French industrialist by the name of Henry Foyol, has introduced a set of 14 principles of management back in 1916 that is still widely considered by many authors (Gupta, 2009). This essay will look at comparing two companies which are based in Dubai, which are Virgin