Case Study Of Pescanova

Decent Essays
Going deeply, KPMG reported that Pescanova obtained credits by creating false invoices (it estimated 75-80% of all invoices were false), involving third companies with which the firm had maintained real commercial relations, as Pescanova had the necessary information from previous exchanged products and services; the employees phoned the banks for factoring services and they gave the needed credit without making questions, given where the call came from, without noticing if the invoices were OK or not. Pescanova had factoring agreements with a lot of finance entities, that contributed to the increase of the debt of Pescanova. That way, Pescanova temporarily solved its treasury needs, as it accounted with liquidity to pay the 90-days invoices, assuming the banks all the risk of the operation.…show more content…
Added to the economic and fiscal crimes committed, we can easily observe some ethical problems and dilemmas from that situation, to be analysed in the following paragraphs.

In carrying out the analysis of the Pescanova problem, we have seen that it is a really complex and extensive case, in which numerous people, companies and institutions are involved; we observe the existence of both; problems and ethical dilemmas.

We have reviewed the different drivers that led to the decision making that brought to the extreme situation in which the company finally was involved:
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