These roll over accidents resulted in the deaths of at least 174 and injures to more than 700 people. The result of these accidents is that Firestone and Ford became involved in a public relationship battle as each one blamed the other for the accidents. As this battle continued to escalate both companies reputations began to suffer severe damage. This inevitability resulted in the end of a business association that had lasted over one hundred years. 2) Major Overriding Issues/Problems After reading the case study and doing some additions investigation, it appears that both companies had made decisions that contributed to the accidents and the resulting deaths.
This pollution has since affected their health and has resulted into more cancer deaths, miscarriages, defects in births, dying of livestock and the sick fish. The attempts to solve the problem and prosecute those involved have proven futile since the county‘s judicial system is marred by corruption. The company was required to clean up its mess and pay for the damages. The toxic waste dumped in the area is believed to be of an estimate of 18 billion gallons, and its remains are still present to date.The company that took over the ownership from Texaco was later ordered to pay eighteen billion dollars for the damages. This was to act as the reparations for the
The financial crisis of 2008 was the most detrimental crisis since the 1930s when the Great Depression transpired. Stock markets had fallen all around the world, huge financial institutions had collapsed or were bought out, and every nation’s government needed to bail out their financial systems. There are many different theories as to why this crisis began including the blame of deregulation and regulation among other things. The housing boom reversal and the subprime mortgage crisis had a large influence on the occurrence of the financial crisis which makes me believe greed and not enough regulation encouraged this to occur. The subprime mortgage crisis was a result of excess borrowing because of the assumption that housing prices would only continue to rise.
When we think of a negative leader that we encountered we want to take a step back and remember the impact. People under negative leadership can suffer dysfunctional for months or years and so as organizations. A futile business is because of the poor performance and it is because of incompetent leadership or negative leadership. Successful companies are successful for different reasons but dysfunctional leadership companies are dysfunctional in the same way (Jones). The Subject of leadership has been greatly described by the many scholars, researchers and authors, but still it’s a challenge to many companies.
The marginalization of Sherron Watkins, VP of Corporate Development at Enron (and former Arthur Anderson employee) who raised warnings directly to CEO Ken Lay of highly questionably and illegal accounting and trading practices set up by Jeff Skilling. Arthur Anderson’s culture of maximizing billable hours on audit work and allowing its Anderson Consulting unit to bring in huge profits by working with Enron’s energy unit, lead to a major conflict of interest and played a key role in the massive failure audit watch dog. In the end the actions of the Arthur Anderson partners where as self dealing as the senior management of Enron. Finally, the long term effect of Enron culture self-dealing, self-enrichment and self-preservation at the expense of shareholders and the employees cause years of inaction
A few months later, a formal complaint was placed. In addition, the campaign was aggravated with pamphlets, pickets and the press. This resulted in a direct impact on the untarnished reputation of the firm which further affected their financial results. Charges were coming from everywhere and investigations were triggered. In 1990, the administrative authorities ruled that Nordstrom had violated state wage and hour laws due to its incapacity to remunerate all the services provided.
As of 6 December 2000, there have been 148 reported deaths and over 500 serious injuries1. It would have been very likely that people would shun Ford and Firestone products from then on due to their perceived danger, which made Ford and Firestone’s management of one of their biggest stakeholders- their customers and the victims of the accidents- extremely important. On the whole, Ford and Firestone’s handling of stakeholder issues were not exemplary. Victims of their faulty products were not properly informed beforehand of the risks, compensation to them was reluctant and mostly delayed, the two companies played the blame game, and many jobs were lost in the process. As such, I feel that Ford and Firestone handled stakeholder issues poorly, and although certain measures were implemented after the incident, I feel that they were insufficient, tardy and unhelpful in regaining customer loyalty.
The management team should have made sure that users received a warning about a particular file being deleted. McAfee claimed the problem resulted from “inadequate coverage of product and operating systems used.” 2. What was the business impact of this software problem, both for McAfee and for its customers? Many customers and companies lost their data and were unable to reboot their computers. McAfee lost millions of dollars and they lost a lot of customers.
That was a pretty big stick to hold over them. It was a continual challenge to explain to the American public and local leaders what was going on. They were accustomed to a disaster-response system where locals were in charge, and if the feds get involved they are giving support. This action had a very different legal framework that assumed federal preemption for the response to the spill. The causes of the disastrous blowout and gas explosion on BP's leased Deepwater Horizon offshore drilling rig in the Gulf of Mexico are a long way from being determined.
Brief overview of WorldCom’s case and general discussion of its fraud nature: Beresford, Katzenbach and Jr (2003) stated that, from 1999 until 2002, a few executives at WorldCom perpetrated accounting fraud that led to the largest bankruptcy in history. The principle business strategy of its CEO – aggressive growth through acquisitions underlined its collapse and eventually imposed pressure to management to commit fraud. In fact, WorldCom’s fraud was a consequence of a set of complex factors, including the existence of dominant senior management, structurally weak internal controls, inadequate audits by Arthur Andersen, the poor oversight of the Board, and pressure from Wall Street’s expectation, etc. The large scale collapses of WorldCom and Enron triggered immediate remedies of corporate governance, essentially the Sarbanes-Oxley Act, which aimed to solve the issue of “lack of confidence” in the reported financials. WorldCom’s fraud was an intentional misconduct of the perpetrated senior management that results in an $11 billion material misstatement in the financial statements via two principle forms: reduction of the reported line costs and exaggeration of reported revenues, in order to create an image of increased earnings and revenue and hold the line costs lower than the industry average rather than indicate the truth and fairness of WorldCom’s wealth and progress (Beresford et al, 2003).