The company had forgiven millions of dollars in loans and granted excessive bonuses to executives. It was also found that Tyco’s stock price was inflated. (Kaplan, 2009) The main impropriety was discovered when District Attorney, Morgenthau, was investigating Kozlowski for tax evasion on some exotic art work. The investigation uncovered that many other questionable business practices had ensued. (Kaplan, 2009) The illegal and unethical behavior occurred when (CEO) Kozlowski, and (CFO) Swartz, awarded millions of dollars to themselves and other executives that were not approved by the board of directors.
Why are ethical behaviour and government regulation important in marketing? EXECUTIVE SUMMARY The marketing function of a business must apply ethical and legal practices into their operations in order to build a successful business. Legal standards are compulsory requirements business's must comply to that are authorized by parliamentary law whilst ethical standards are prescribed by business's to conduct morally rightful activities in the favor of the consumer. Marketing managers who implement both legal and ethical standards to their practices will succeed in enriching the goodwill of a business, the provision of producing quality products/services, and opportunities in business expansion. ENRICHING THE GOODWILL OF A BUSINESS The goodwill of a business can be can be enriched or diminished by how a business applies legal and ethical practices into their marketing operations.
Perjury is known as lying under oath. It is the deliberate, willful giving of false, misleading or incomplete testimony under oath. Mr. Madoff, who is allegedly lost $50 billion in investor money in histories largest documented Ponzi scheme, He plead guilty for stealing vast sums of dollars from individuals and organizations, some of them charitable, by taking their money and pretending to invest it in the stock market, when in actuality he used the money for his own selfish purposes. 1. Name three types of parties who were impacted by the actions of Mr. Madoff and describe how they were impacted.
Because of Mr. Madoff’s dishonest activities many of the people who trusted him lost everything. There is no place for fraud in business, the innocent are affected, a company can suffer monetary damages, damage its reputation or even shut down which will also affect the employees of the company who could possible lose money and their jobs. Theft is defined as “the act of stealing; the wrongful taking and carrying away of the personal goods or property of another; larceny.” Theft is also unethical and illegal and has no place in business. Through his Ponzi scheme Mr. Madoff stole millions if not billions of dollars for innocent people. It was alleged that Mr. Madoff made false statements.
In this way, I think Joe is using utilitarian-type reasoning because he is thinking just in his benefit, but he is not thinking of stakeholders’ benefits. Finally, I think Joe is an unscrupulous person, and he is dishonest. His job was to hire the most compatible people for the job, but he hired pessimistic people in order to achieve his proper interests. Another important point is about spreading good ethics within an organization. Companies have rules that clarify what good ethics means.
This act was signed by President Bush after the financial scandals revolving around Enron, Worldcom, amongst others. People want to know, why was there not one single arrest of a high ranked executive following the biggest market crash in history. Sarbanes Oxley was supposed to help prevent this kind of disastrous situation. During the crash, executives from Countrywide mortgage amongst other bankers packaged toxic securities and sold them to their customers knowing that they were practically worthless. These subprime mortgage derivatives were the entire center of the meltdown that resulted in millions of jobs being lost, and millions of lives ruined.
The primary responsibility of any accountant is to maintain the trust of the public. The number one priority of any accountant, whether a CPA or not, is to uphold the public’s interests at any cost. The debacles of WorldCom and Enron left many investors with a negative view of the accounting profession. Although it was just a few bad accountants in those fiascoes, it tarnished the image of every accountant in the United States. Therefore, an accountant must act according to the Code if he or she wants to gain and keep the trust of the public.
Because of Enron’s shady accounting and false representation of itself, their stock price dropped dramatically, and they became one of the biggest companies to ever go bankrupt. Who is Responsible, and What Did They Do? Kenneth L. Lay was Enron’s Chief Financial Officer during the time of the collapse. He was a part of one of the biggest energy trading companies in the world. “…using the Internet to buy and sell natural gas and electric power supplies for utilities and industrial power users and helping them hedge against fluctuations in power prices.” (Oppel 2001) Through a Security and Exchange Commission formal investigation, Enron had shifted billions of dollars of debt that it owed into several different partnerships.
A code of ethics supplied by a business is a specific kind of policy statement. A properly outlined code is, in effect, a form of legislation within the company required by its employees, with specific agreements for violation of the code. Violation of any organizations Code can cause legal accusations or dismissal from a job. The Ethical Standards of Human Service Professionals provides specific “rules” to follow that will protect the client’s welfare with respect and integrity. With the client’s best interest at heart, the helping professional should begin the relationship by establishing mutually agreed-upon goals, while informing the clients of the limitations of the relationship (Woodside & McClam, 2010).
The code of ethics leaders use determines discipline procedures and the acceptable behavior for all workers in an organization. When leaders have high ethical standards, it encourages workers in the organization to meet that same level. Ethical leadership also enhances the company’s reputation in the financial market and community. A solid reputation for ethics and integrity in the community may improve the company’s business. Employee Ethics Ethical behavior among workers in an organization ensures that employees complete work with honesty and integrity.