(AP) Former Rite Aid Corp. chief executive Martin L. Grass was sentenced to eight years in prison Thursday for conspiring to falsely inflate the value of the company his father founded and cover up the scheme. Grass, 50, who headed up the nation's third-largest pharmacy chain in the late 1990s before being forced out in October 1999, also was fined $500,000 and given three years' probation for his role in a billion-dollar accounting fraud that sent the company's stock tumbling. Before U.S. District Judge Sylvia H. Rambo handed down the sentence, Grass apologized to Rite Aid, its stockholders and employees. "For the harm caused to them, I am truly sorry," he said. Grass was indicted by a federal grand jury two years ago.
William Aramony was CEO of United Way for more than twenty years and built United Way of America into one of the nation’s biggest charities. The United Way has been an umbrella charity that was created as a fundraising organization to support many smaller charities. But William Aramony retired in 1992 amid allegations of fraud and financial mismanagement, for which he was subsequently convicted and sentenced to prison. When an internal investigation and news reports disclosed his lavish life style, as a potential or actual giver to United Way campaigns, I felt terrible knowing all these fact where my contribution had been misused for his lavish lifestyle. At one time, I thought I will never donate anything to the non-profit organization, simply because I know that money is going into the pockets of people who do not need it.
The whole luxury goods industry in the U.S. dropped over 14%, and R&R revenues declined 10%. Although R&R suspended new-store opening and hiring, the condition still struggle. So, now the CEO of R&R Linda Watkins not only has to cope with the SPH lawsuit and the huge amount of punitive payment, but also the reputation damage during this hard time. Central Issue How CEO of R&R Linda Watkins fix some flaw of the Ownership Culture (SPH program) during this hard time. Recommended Course of Action Linda should revise the Ownership Culture partly, such as adding extra commission for excellent sales.
The communities were these jobs were lost have been devastated. Families’ lively hoods have been broken, retirement pensions are questionable, and the revenue this company generates for the city in which it resides. According to CNNMoney.com the company has asked for an extension for the liquidation of their inventory until March 31 and they are only waiting for the courts approval. If this does not succeed stakeholders, stockholders, investors, and suppliers would be affected alike. Ethically I found it hard to believe that this happening in the United States and that our economies have become so terrible that the Circuit City’s in Canada are not closing and their profits are up.
“We are trying to promote awareness and discussion,” said Professor Paul Moriarty of the department of Philosophy. “Sometimes in the U.S. we tend to be a little too isolated, we don’t know what’s going on in the rest of the world.” Americans tend to be self involved and have little to no knowledge about international happenings. This makes American society weak and ignorant. To combat this universities like Webster encourage global involvement not just through study abroad
Have you ever had a great amount of animosity towards pro athletes that make more then they need? In this case, professional caddies for top golfer can fall under this category as well. Why should an individual get paid thousands of dollars to hold a bag full of clubs and say a few things during a match? After the meltdown of Tiger Woods after the “Thanksgiving car crash” in 2009, he showed no signs of improvement of dominance with his once consistent caddy Steve Williams. To make a long story short, the whole caddy thing did not work out and they went there separate ways later down the road.
In this case study Antonio work in the Empress Luxury Lines and he faced dilemma regarding the ethic in the work place. Kevin Pfeiffer works as a computer technician and his roles to estimated damage due to recent thunderstorm. Antonio requested a computer systems upgrade ever since he assumed his post two years ago. Phil Bailey, who was Kevin Pfeiffer’s supervisor, orders Kevin to reports the estimate of damage. Kevin reports about the $15,000 worth of damage so his supervisor and the chief financial officer both were unhappy with it.
ACRC: CORPRORATE GOVERNANCE FAILURE AT SATYAM 1. What are the reasons for the inadequate corporate governance at Satyam? The fall of Satyam can be attributed to many causes as mentioned below: * Raju had been manipulating Satyam’s financial books for a period of seven years and the major corporate governance issue was that the Board of Directors and the auditors were unable to catch hold of the issue for so long. * Raju and his family founded a group of companies called Maytas. It was owned by his sons and to ensure billion dollar targets for Maytas, Raju inflated cash and bank balances in Satyam’s financial records.
The irregular accounting practices, including manipulating stock prices, caused Enron to have to file bankruptcy in December of 2001 (Thomas, 2002). The scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s (Hanson, 2002). Enron collapsed for many reasons. .Among the many reasons were the lack of attention shown by members of the Enron board of directors to the books financial entities and the lack of truthfulness by management about the health of the company and its business operations (Hanson, 2002). The firm’s senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron.
1. Explain the possible problems in the ethical culture of the Red Cross that created the issues discussed in this case. One of the possible problems in the ethical culture of the Red Cross that creates issues is because it is a charitable organization, its leaders have assumed that all employees and volunteers will act ethically. Although this has been disproven many times recently, the Red Cross still has not taken all necessary steps to ensure that it is truly a socially – conscious and ethically – responsible organization. One of the other problems with the ARC’s ethical culture is the moral lack displayed by some of the organization’s leaders.