The Sarbanes-Oxley Act of 2002 Corporate America took a hard blow to the chin when the reality of bad accounting practices, fraud, embezzling, and other criminal activities took center stage on every media outlet worldwide around the turn of the millennium. American’s began to see firsthand exactly what types of people were running some of the largest organizations in the country and how greed and power could ruin lives. Along with these eye opening realizations, our elected officials were forced to create a way of holding Corporate America accountable for their accounting and business practices and to ensure that the criminal activity that brought down several of the nation’s largest organizations, costing taxpayers millions of dollars
The central compliance issue that they are working to curtail is their many violations of the Servicemembers Civil Relief Act (SCRA). Since 2003, the company has undergone scrutiny about overcharging servicemembers and recently returned servicemembers from active duty, which caused many of the servicemembers to face the possibility of a bank foreclosure. When this issue was brought to the company’s attention, J.P Morgan Chase identified two problems. The first was the fact that four thousand-five hundred servicemembers were charged interest and fees that were way above the regulatory cap. Secondly, J.P Morgan Chase
2. The instructions were too vague, in the court’s view, to allow a jury to find obstruction of justice had really occurred. The court found that the instructions were worded in such a way that Andersen could have been convicted without any proof that the firm knew it had broken the law or that there had been a link to any official proceeding that prohibited the destruction of documents. 3. During that time I do believe that the Supreme Court’s opinion in overturning the lower court’s decision was appropriate.
Out of the many parties in the league and the major force behind the debacle of Enron concern Andersen's, the accounting and auditing firm that once deserved name in the industry for its conscience in accounting professional services and auditing. The interesting feature is that some compromise in the profession of accounting services by Andersen's was notable, given that there are noteworthy feature of stock manipulation, especially in financial statements of Enron attended and audited by Andersen's. 2. List three types of consulting services that audit firms are now prohibited from providing to clients that are public companies. For each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firm’s independence.
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.
The Failure of Lehman Brothers Holding Inc. What caused the failure of Lehman Brothers? Could it have been prevented? How? Kokou OHOUKOH Treasurer, banque atlantique Togo Abstract The collapse of Lehman Brothers Holding Inc. (LBHI) shuddered the whole banking and financial industry, and the world economy as well. The reasons for this failure have aroused academic interest and debate, and abundant research on the root causes of this “too big to fail” investment bank.
Desmond LeSure Professor Bolton ENGL 1020 19 April 2012 “Is the Three-Strikes Law fair and ethical?” There are individuals who were known as habitual criminals who constantly repeated the cycle of committing a crime, getting arrested, and eventually getting released. In 1993, Americans noticed that this was very costly to the public because the process of arresting and trying these criminals was expensive. American tax payers were beginning to become concerned with this issue and wanted something to be done about habitual offenders. Society is pushing the issue that it was more logical to keep repeat criminals in jail and not release them to commit more crimes. Politicians listened to society and executed a law that would put an end to
According to Robert Solomon, “Good Ethics is Good Business” and “unethical conduct hurts business as a whole”. I agree with his point of view because in the business world, we have witnessed big companies fail and fall down due to their unethical practice. I also agree that being aware of the 3C’s, which are Compliance, Contributions, and Consequences, is the best tool to define Good Ethics in Business. Solomon used Break Breaker Inc. case to prove that unethical business strategy will lead to the quick failure of business. Break Breaker Inc. to some extent obey with some legal rules, but failed to comply with principles of morality and community, contribute to the society by producing honest high quality services, and account the consequence of damaging their reputation.
This led to Enron laying off thousands and shareholders losing billions (Ferrell et al., 2011). The Law of Respect Enron employees respected the company’s executives. Enron was a top company showing huge profits. In the end, however, we found that Enron’s executives abused this respect. The top executives were found guilty of crimes such as fraud and conspiracy.
Customs officers are expected to do their job and put a stop to the drug trafficking but the temptation of making some extra money may be extremely strong. Money is the root of all evil and a lot of people are very selfish. For an example, they know the effects drugs have on a society as a whole but if the price is high enough, they may turn their head and allow the drugs to be brought in. Not only is this wrong, it is damaging to everyone. “It is believed that the loss of the drug trafficking industry in Mexico would cause that country’s economy to shrink by over 63 percent” (DrugAbuse.net, (2012), para.