One of the main reasons was because Nixon was not physically involved in the the actual planning of the Watergate scandal; however his involvement in the cover ups for all the incidents that had taken place was his downfall. The Watergate scandal had made its mark on American presidential abuses of power. The cover-up itself signifies the White House to obstruction of the investigation .The Watergate scandal was the nation’s worst political stories of all times. President Nixon being incorporative during the investigation proved that his involvement was the one of the main reasons of his downfall. .By failing to provide the investigators with all the information just proves his admission of guilt.
The ethical Behavior of Bernard Madoff and Enron Corp Enron and Madoff investment corporation downfall resulted from their failure to observe the business code of ethics. Their greed, improper transactions, lack of transparency and integrity, bankrupted and exposed their criminal activity. They lost the confidence of the public and their employees. Business men are expected to conduct themselves in ethically acceptable rules that follow social values. They are required to follow regulations and laws that are passed in order to protect the society.
When revenue is less than expenses, there is a problem. Identifying the overages in expenses is crucial because these costs have a negative impact on the performance indicators profit margin and return on equity. This is what the CFO, Sullivan, was trying to avoid. The purchase of the line leases was a bad business decision that caused a major problem for the company and rather than deal with the consequences of the bad business decisions, Sullivan and others tried to hide the problem. The internal controls monitoring provided by Ms. Cooper and Mr. Morse uncovered the fraudulent transactions meant to hide the losses incurred when the telecommunications business fell off.
When corruption occurs it damages the reputation of the employees and the business. Society relied upon this firm to assist in making them money but the firm was more concerned with their bottom line. Many of the individuals doing business with these firms lost their life savings and destroyed some of the trust that investors have with the Wall Street firms. It makes people have second thoughts about investing in the stock market. Another effect this unethical behavior had on these organizations been they agreed to pay a penalty of over $1.43 billion dollars as compensation to the victims.
401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success. Making profit is important to people. Most of all, improving the bottom line is the primary objective for major companies. “For Robert Shively, learned that his employer, Occidental Petroleum Corporation, or also-known-as Oxy Pete,” wanted to forgo the guaranteed-employer pension plans for the less demanding 401(K) system where it is based on contributions from employee’s pay rather than from the employer’s profit. This forces the employee to save without any effort but, due to this, workers began to neglect the social security and entirely dropped the use of the original pension plan.
BERNARD MADOFF CASE STUDY What are the ethical issues involved in the Madoff case? The Bernard Madoff case is fraught with numerous ethical issues. This case has been classified as the largest swindle in our nation’s history. Madoff is a typical example of someone who had a lack of respect for his profession as well as a lack and pure disregard for the personal relationships that he built over the years. These same individuals trusted and respected Bernard Madoff and yet he showed less than the mutual respect a professional investor should show toward his clients.
This paper focuses on what the management team did wrong that cause them to fail and who are the real winners from this transaction. Why management team lost When Ross Johnson proposed a levered buyout, he was sure he would win. He thought that RJR's directors would give him the deference due a chief executive, never realizing that the board would have no choice legally or morally but to treat him as an outsider. The following factors highlights why management team lost. Remaining Equity: The board tried to keep the company as unbroken as possible to minimize the negative effect on employees.
Ex-CEO of WorldCom, Bernard Ebbers was convicted by a federal grand jury on nine counts of conspiracy, securities fraud and false regulatory filings in an $11 billion accounting fraud at WorldCom leading to largest bankruptcy in U.S. history. Mr. Ebbers’ only defense was that he was totally unaware of the fraudulent activities. Being in the position CEO in one of the largest companies in the world, he is ultimately responsible for the success or failure of the company and his claim of ignorance to the actions the led to the demise of WorldCom makes him liable for the other directors in the company. Utilitarianism is defined as the act that promotes the greatest utility
It also said that the company that owned the drilling rig as well as the other company that was responsible for the cementing operations shared blame for the spill but BP is the main company liable. I find this article interesting because BP, as an oil company, is faced with many strict government rules and regulations to stop this sort of disaster yet BP seemed to almost ignore them in order to save money and time. By not properly conducting safety training with their employees BP was setting them up for failure. They also changed plans last minute, which would not allow them to fully assess the soundness of the new plans. To me this just seems like poor business practice considering they knew full well a spill would result in a dramatic decrease in the company’s public standing as well as value.
Employment assurance wavered due to the negligence of the organization failing to adhere to policy and procedures which resulted in employees and volunteers practicing deceitful and unethical things. Investor loyalty was severely damaged by inside personnel stealing donated funds and financial misconduct of company records. Customer fulfillment was depleted based on the untimely actions of the American Red Cross along with the consumer fraud, and the organization attempting to deceive the donor’s for their own personal gain. Today’s business world needs leaders who can make ethical decision while making sure the action can have a lasting effect on the organization as a