Essay on Adelphia

1583 Words Jun 6th, 2013 7 Pages
Introduction
This case study is mainly about the character of John Rigas who owned a movie theatre named Adelphia with the shares of his brother, Gus. After Adelphia, they purchased more new companies such as Adelphia Communications Corporation and Century Communications. The continuous success of their business causes, Adelphia Company became the sixth largest cable company in United States. They faced a lot of problems throughout the journey they run their business. Adelphia always had been as a family business because most of the shareholders and board of director of the company are John Riga’s family members. As a generosity person, John Rigas and his family helped many parties in term of donation and charities such as decoration
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In this case, John Rigas and family helping their employees in term of financial and non-financial so that they could reduce the burden of their employees’ troubles. It is also considered as a welfare protection towards their employees because during that period the economic is too down. Hence, based on Kant theory, it is actionably unethical. It stated that doing right thing with a right reason is important in making a good decision. It is good when a person acts out of duty and not out of a tendency towards a particular feeling or attitude Here, John Rigas used the wrong way to help the needy people. He does not disclose all the information appropriately and there is fraudulent made by management staff towards the financial position of the company with the concern of John Rigas. Therefore, it is consider as violent according to law and accounting standard.
According to Bar Council of view, the action of John Rigas led it to conflict of interest between Rigas family and stakeholders of the company. The conflict of interest the company faced was how the company choose to staff its Board of Directors with family members and close family friends. As we can see, 60 percent of voting shares of company are held by Rigas family including John Rigas, sons Michael, James, and Timothy, and son-in-law, Peter Venetis. Although there is no restriction prohibiting family members from being on the board of directors, this usually is not advised. This is because…

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