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.
3. ANALYSIS OF THE PROBLEM
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.
CRITICAL ORGANIZATION FACTORS
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:
Financial
The two examples that were considered in the dilemma was in a resolution of a decision they would start a job or end a job. The decision was based on unethical matters which I have not
4. Is cost-benefit analysis a legitimate tool? What role, if any, should it play in moral deliberation? Critically assess the example of cost-benefit analysis given in the case study. Is there anything unsatisfactory about it? Could it have been improved upon in some way?
The problems to be investigated are the business ethics and practices of Goldman Sachs. There were several grey areas in which Goldman Sachs operated their business.
Humans can be too selfish, and by the time they realize how situations can emerge in their contrary, out of nowhere already a giant incident has occurred. An example of this selfishness is presented when the people have “high levels of corruption in both the garment
Ethical studies in criminal justice is important because it provides the professionals with a platform for making noble choices when faced with unsure situations of moral concern. In this case, they require a system of rules as a guide in making complex moral decisions. Consequently, criminal justice professionals will develop analytical skills and reasoning potential in discerning the practical and theoretical aspects of their profession’s system. Additionally, an ethical insight eliminates inexperience in moral issues, hence enabling them to easily identify ethical consequences and moral code of conduct. Therefore, the awareness of criminal justice professionals on matters pertaining to
Ethical theory will be outlined in relation to the example case with discussion on how the case poses an ethical dilemma in the workplace. Additionally ethical theory will be considered in light of the case with
It is a relevant ethical dilemma because it is a situation in which an ethical decision needs to be made by a businessman (CFO of Gabriel Resources) where viable options to this case are available which will be judged further in this essay by applying ethical theory and concepts.
2. Ethical Issues in Business. It seems that every day in the news we are hearing of new company that has acted at least unethically and possibly illegally in the operation and financial reporting of their company's business dealings. There are many ethical issues in business. One major issue that we see is over and under reporting net income. Companies like to show that every quarter the net income of the business has an increase or profit. In order to show this they adopt unethical or illegal means in the operation and financial reporting. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate earnings. With the recent ethical issues we have
During week five the class discussed a case titled Chiquita Brands: Ethical Responsibility or Illegal Action? This article proved that you can act in a manner that is positive and still receive a negative result. This can be determined by seeing if a decision has ethical reasoning or not by the decision that’s made is either ethical or unethical. So according to the article Chiquita’s brand, company continues to pay payments to the paramilitary group to ensure the safety of all their employees. These payments that are being made are now considered to be illegal since the paramilitary group was classified as a terrorist group. The company is aware of this and still decided to continue making payments. So, to determine if the decision they made was either ethical or unethical I would look at the four
The use of a case for exam purposes can help the instructor understand a student’s depth of understanding of the material. Points can be taken off if they fail to identify the ethical issues and important stakeholders or justify their decision relative to their stated moral philosophy base. To help you with this exam type we have included three cases that can be used for exam purposes.
Ø Give some specific examples of ethical issues that confront businesses and how these might be addressed.
Managers are constantly faced with critical decisions that will heavily impact on the company’s competitive ability and profitability. This report will analyse the critical decisions made in the case study The Change Story of Yellow Auto Company from a sociologic decision making perspective. The case study presents four main decisions which are: increase of market share, change in decision management style, clarify job description and invest greater time and money in human resources. The analysis of these decisions centres on the relationships between employees and managers and the
In the first ethical problem selected, two separate books were kept by personnel in the Adelphia financial management department with the intent of deceiving external auditors; thus leading shareholders and the public to believe that the company was ultimately worth more than it was in actuality. In the second, the Rigas family frivolously dwindled away public money for personal selfish consumption which is clearly a violation of the public’s trust. In the weeks following the unraveling of events and divulgence of information, a number of townspeople and investors were concerned that the family was rather free with shareholder money and further believed corporate money was used to finance public generosity as previously discussed in this paper (Barlaup, Hanne, & Stuart, 2009, p. 10).
In my opinion, Peregrine recorded the "factoring" and assignment of their receivables as a factoring agreement and recorded the transaction as a sale of the receivables. They recorded the cash received and removed the related receivables from the accounts. By removing the receivables, they treated the receivables as if the risk of collection had passed to the bank without recourse. Peregrine concealed the revenue fraud by violating GAAP for financing arrangements. Because Peregrine had given the banks recourse, and frequently paid or repurchased unpaid receivables from them, Peregrine should have accounted for the financing arrangement as a liability and left the receivables on its balance sheet.
This essay will consider what legal punishment is; it will draw a distinction between the two main categories.[3] It will focus on utilitarianism