In an attempt to save money, Nixon had delayed pay raises to federal employees by 6 months, which resulted in a national postal worker’s strike. Nixon yielded to the postal workers commands and un-did some of the budget balancing that Arthur Burns had required. During the 1970 elections, Republicans had picked up two seats in the senate but lost nine seats in the house. Nixon blamed this defeat on the economy and it continued to deteriorate. Despite Nixon’s New Economic Policy that began in August 1971, the economic downturn had resumed in 1973.
The bonus was determined by performance against a number of team-based measures including business development, client satisfaction, and productivity. While Schwab initially attracted customers who felt they had been "burned" by traditional full-service brokers, by 1982 they had grown to $54.0 million dollars in revenues. In 1983 BankAmerica bought Schwab for $57.0 million. However, they did not own them long due to Schwab's go-go entrepreneurial culture which clashed with BankAmerica culture.. Schwab lead a $280 million dollar management buyout of the firm from BankAmerica in 1987. Then in 1988 Schwab went public.
1. What are the ethical issues involved in the Madoff case? Bernard Madoff started off in the 1960s with a legal business selling over the counter stocks that weren’t listed on the NYSE. He basically acted as a wholesaler between institutional investors. In the 1990s, Madoff started doing his illegal activity causing several investors millions of dollars.
A lengthy investigation and several hearings pressed JPM leaders on their trading practices. One hearing in particular, conducted by the Permanent Subcommittee on Investigations accused the banking giant of misleading investors and regulators about the risks taken during trading. In his testimony, JPM’s chief financial officer, Douglas Braunstein, “said his statements were based on what he knew at the time, conceding that in hindsight the credit portfolio ‘did not act as a hedge, it changed dramatically and we misunderstood the risks’” (www.4-traders.com, 2013). Later in his testimony, Braunstein mentioned that his 2012 pay was cut in half to approximately $5 million, because of the trading debacle. Other bank officials made similar statements in an attempt to dispel public opinion that they, and everyone in the banking industry, were overpaid and over-privileged.
Since Walter took Steven into a soundproof room for six hours and threatened to hurt him if he did not divulge information, Walter committed false imprisonment. False imprisonment is the “intentional infliction of a confinement upon another party” (Melvin, 2011). With that being said, a major liability for the company is awarding compensatory damages to Steve for suffering mental distress. Scenario: BUGusa, Inc., Plant Parking Lot What defenses may be available to BUGusa, Inc.? Explain your answer.
After reading Chapter 10 of our text concerning “Payroll Fraud Schemes”, I began to think about a recent scandal that took place in our local town’s city council. Alonzo “Lonnie” Bates, 68, a former Detroit city councilman and Detroit Public Schools board member is currently serving a 33-month sentence after being convicted of theft and bank fraud charges related to placing “ghost employees” who did little or no work for the city, on his City Hall payroll. He was convicted August 2008, I found a recent article titled “Past Legal Troubles”, published by The Detroit News, on March 25, 2008. The article describes the indictment and many charges that were filed against the former city councilman concerning the “ghost employee’s payroll fraud”.
Such circumstances where a director is to face personal liability is misusing company information. Rene Rivkin was the director and chairman of his own company and was sentenced to nine months of weekend detention and fined $30,000 after being found guilty of insider
There are six areas in particular where ethical issues have risen in organizations: compensation; conflicts of interest; publications and solicitation; financial integrity; investment policies; and accountability and strategic management (Rhode & Packet, 2009). Some examples of outrageous unethical behavior by corporations that compare to PharmaCare’s actions are: • Merrill Lynch & Co. CEO John Thain, spent $1.22 million in 2008 to redecorate his office, including the purchase of a $1,400 trash can and a $35,000 antique commode while the company was hemorrhaging losses of some $27 billion (Fitzgerald, 2009). • Former United Way CEO, William Aramony served six years in prison after an investigation uncovered misuse of the charity’s funds to finance a lavish lifestyle, including luxury condominiums, personal trips, and payments to his mister (Arenson, 1995). • Enron is known for their unethical practices. Enron’s mismanaged bonus systems and compensation structure was a part of the explanation for their morally irresponsible behavior reflected in Enron Corp. and in financial crisis by skirting of legal technicalities and ethical boundaries, Enron manage to lose more than $600 million (Sims & Brinkmann,
PNC transferred nearly 100 million of nonperforming loans to an SPE that was created by AIG. When Federal reserve officials reviewed the transactions and it also triggered investigation by SEC, and issued that it is not in compliance with GAAP. At last, this case cause both loss to PNC as well as Greenberg and Joseph. In the second case, Waverly Edward Holland completed a degree in accounting and accepted a audit position afterwards for three years and then come to school again to finish his MBA degree. Unfortunately , one night he got one call from an attorney named Robert Chope.
Someone could have a deep devotion to a ruler or boss that does not display proper ethics. In the case of the Adelphia Scandal many family members followed the CEO of the company, but were all penalized because proper business ethics were not displayed at the time. In this case assignment I will identify the Adelphia family scandal, identify ethical violations, describe deontological ethics, and I will briefly discuss Kants Theory. Adelphia Scandal In June of 2005, “John Rigas, who turned a $300 investment a half-century ago into cable behemoth Adelphia Communications Corp., was sentenced to 15 years in prison Monday for his role in the looting and debt-hiding scandal that pummeled the company into bankruptcy” (Associated Press, 2005). This scandal leads to the bankruptcy of the Adelphia Corporation.