Unethical versus Ethical Leadership Leaders at AIG argued that they were obligated to pay bonuses to executives even after the company was bailed out by the U.S. government because of the company’s contracts with these executives. Do you think this is a legitimate argument from an ethical standpoint? I truly believe that this situation was very unethical. Sure the leaders thought they were entitled to the bonuses. But logically, the bonuses were for business productivity.
Mostly this occurs because an employee has financial issues and believes that the company would not miss even a little bit of money. Money people who commit fraud feel justified in doing so because they believe they are underpaid and undervalued all while the higher ups in the company live a lavish life. When all three of this are combined it makes fraud seems reasonable and not as bad as it would for people that don’t feel this way. Sarbanes-Oaxley Internal control can be defined as “all the related methods and measures adopted within an organization to safeguard its assets, enhance the reliability if its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations” (Kimmel, Weygandt & Kieso, 2011, p.337). Making sure that this system is in place and clear is up to the upper level management.
"The managers of big business took huge risks out of greed," said President Oscar Arias of Costa Rica. Costa Ricas economy is highly dependent on American trade, so they are greatly impacted by our recession. Europe calls it “casino capitalism”, and says we need higher standards for financial regulation so the globes economy won’t be affected by America’s financial hiccups. Icelands economy depended mostly on finance, so their bank system collapsed, and as a result, the government
However it can be argued that the roots of Hitler’s appointment as Chancellor in January 1933 lie in the disaster of the Wall Street Crash of 1829 and the subsequent depression. This economic crash and the rise in unemployment had the important effect of further polarising German politics. The fact that Germany’s growth in the 1920’s had been funded by American capital which was now forced to withdraw hit Germany’s industry hard. Furthermore it was unemployment and the consequential insecurity that so undermined confidence in the present structures. By 1933 over 6 million German workers were unemployed.
This danger is present because when a monopoly effects an industry, it is very easy for the holders of the monopolistic trust to manipulate the prices of their products, putting a stressful load on consumers and the economy. Teddy Roosevelt, a popular president of the United States, was also well known as a trust buster. Roosevelt believed the government had the obligation to control trusts, and prevent them from monopolizing any given industry. Roosevelt didn’t believe that all trusts were inherently evil. Roosevelt felt some trusts were integral to the economy, and actually worked to preserve them.
Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 was an act passed by Congress in 2002 in order to protect investors. It was made and passed in response to scandals, such as the Enron and Tyco scandals because such scandals lowered the confidence of the investors and hurt businesses. One example of a fraud is WorldCom's line costs. They were very different from their competitors' line costs, and that alerted people to the possibility of a fraud (Accounting, 2009, p. 699). The Sarbanes-Oxley Act basically forces companies to disclose any information about any type of organizational risks (Abrams & Yellin, 2003).
This made the new Weimar government, who signed the treaty, extremely unpopular and there was a lot of opposition to the government. Deep anger about the First World War and the Treaty of Versailles created an underlying bitterness to which Hitler's viciousness and expansionism appealed, so they gave him support. Hitler promised to get rid of the Treaty. These examples show how the Germans turned to Hitler because they needed a new leader to restore its former glory. After the Stock Market Crash in the United States, much of Europe was suffering an economic depression just as the United States.
Final Paper Candice Blair University of Maryland University College PRPA 601 Turnitin score: There are few betrayals worse than mishandling money that someone has entrusted to you. Imagine the damage control needed when institutions whose purpose is to manage others’ money, mishandles the finances of millions of people. In 2012, the financial world was shattered with the implosion of one of the world’s banking giants, JP Morgan Chase & Co. (JPM). Due to a complex trading portfolio that was dubbed the “London whale”, which amounted to over $6 billion in losses, JPM was accused of misleading its investors in order to boost profits, but asserted that they (JPM) were acting on the best information that they had at the time. A lengthy investigation and several hearings pressed JPM leaders on their trading practices.
Mohamed Diakite Difference between Friedman and Freeman. Friedman states that the purpose of a business is to maximize profits while adhering to law and ethics. Primarily, this argument is based on the notion that corporations, as legal persons, cannot have responsibilities like natural persons. Secondary, Friedman’s argumentation is based on the principle of ownership and employment. By not complying with the duty of serving the owners’ interest a manager would allocate resources artificially and arbitrarily.
The CEO, Jeff Skilling’s caustic reply to the question foreshadowed the collapse of a company that had been built on lies and deceit. While the Enron scandal is one of the best known in the history of international business, the reasons for the collapse were built into the company from its very roots. I will begin with an overview of the company and the ensuing scandal, as well as touching on many of the events that led up to the collapse of the company. I will also touch on events that contributed to the company’s inflated stock prices and their unethical and often desperate business practices that undermined the foundation of their business. The aforementioned film, Enron: The Smartest Guys in The Room was an excellent resource as it was primarily historical footage and first-hand accounts from individuals involved with the scandal.