It later transfers large pieces of reinsurance from Coral Reinsurance to Union Excess, another company modeled on Coral Re. AIG also uses loopholes in loss-portfolio transactions to commit fraud and it pays fines after the fraud is discovered by the SEC. General Re executives plead guilty to conspiring to violate securities laws. Greenberg is under
Anderson didn’t do this. He swindled the investors, and the public by keeping all information quiet. Anderson did amount of contribute to the disaster when they overlooked the management by the let down to have Enron direct and enforce their own company internal controls. The flaws that Anderson had is his own internal control. There has to been beliefs the partners were more motivation by the revenues recognition, overlooking things and providing services to the company.
Wal-Mart went forth with the allegations and immediately found a paper trail containing suspicious payments totaling more than $24 million. Aside from the bribes, other top executives also audited information from them to conceal them from Wal-Mart’s headquarters back in Bentonville, Arkansas. They had gone as far as to disguise bribery payments as miscellaneous expenses on the accounting paperwork. The investigation was inconclusive and while there were many prime suspects, none were indicted and in fact many were promoted (Barstow, 2012). Amid the negative attention from the media, Wal-Mart has had difficulty addressing the situation.
The work was more difficult than expected, and the supervisors treated employees badly. Employees received little information about the rig’s future and were exposed to unnecessary safety risks. The employees unionized after one mate died in an accident. O’Neill eventually quit his job. 2.
Yes, he did not conduct himself with the responsibility of a CEO by being fully aware of what was happening in the company. I think that he did not know what was occurring. If he had known, he should have seen that revenues were overstated. This lack of proper governance was a big part of Enron’s undoing. 6.
What were the problems with this corporation from an organizational architecture point of view? Enron allowed people to make decisions that were lower level employees, who did not possess adequate knowledge. The company rewarded high performers with a generous bonus structure, which made the decisions to proceed into a cautious manner non-existent. The organizational architecture did not have a corporate system in place to check the
The report concluded that CIA torture did not produce any information that led to lives being saved. The report also found that the entire program was mismanaged. The CIA contracted a company run by two psychologists to organize and orchestrate their torture program. These psychologists had no prior experience with interrogation techniques, no experience in counterterrorism, and did not even speak the language of the people they were in charge of interrogating. In exchange for setting and running their torture program, which has been called “sadistic and terrifying” by one member of the CIA, these contractors were paid $81 million dollars.
The OD group was not highly respected and this led to many employees feeling it was employee vs. them. In the beginning the OD group held meetings with John Zoltan into the information the group was collecting. The president spent less time with the group once he had to ravel out of the country on business trips. The group still had meetings but no one was truly in charge. By not appointing a leader to the group members went different directions leaving members unhappy.
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.
Workers could lose their jobs putting them in a terrible position. The position would be, if they vote for a strike they would have to support it. If the company starts hiring replacements workers they may cross the lines to save their job then hated by the community for doing so. What workers understand that during a strike, there is a bargaining process with the union and the courts is taking place. What is surprising is that courts no very little about labor, almost nothing about collective bargaining and nothing about unions.