Company Background Of The Company

The corporate structure of Lowe’s is like many other large corporations. Having a Board of Directors that the CEO must answer too. Then having the other officers under the CEO in charge of other sections of the firm. Under them is the managers and presidents of the subsections. The CEO of Lowe’s is Robert A. Niblock; he has held this position since January 2005. In 2016 he was compensated by $12,670,019; this was in the form of stocks and salary. The portion of the compensation that is from stocks is $9,241,654; this means that 73% of the compensation for the CEO is in the form of stock (in 2016).

This $490 million came from the netting manipulation when they offset their expenses with unrelated gains on the sale of assets. The geography manipulation allowed them to move millions of dollars to different sections of the income statement to “make the financials look the way we want to show them” said James Koenig, one of the primary forces behind the scandal. However, none of the fraudulent activities would have gone unknown for so long without the aid of the auditors, Arthur Anderson LLP, involved with Waste Management.

The Fortune 500 Company chosen for this paper is the Lockheed Martin Corporation. Lockheed Martin is a global securities and information technology company headquartered in Bethesda, MD. Lockheed Martin employs roughly 126,000 people in several facilities throughout the world. The company's main business is in research, design, development, manufacturing, integration and sustainment of advanced technology systems, products and services. Lockheed consists of four operating units, or business areas, which consist of Aeronautics, Electronic Systems, Information Systems and Global Solutions, and Space Systems (LMC, 2011).

Physicians were looking for assistance with HMO and PPO insurance companies and rising healthcare cost and PhyCor, Inc. was there to provide the administrative management. PhyCor, Inc. is considered a physician practice management firm, or PPM, that bought out other management firms to become one of the largest firm due to their ability to negotiate managed care contracts. What attracted physicians to PPMs was their ability to “lower cost and increase revenues” (Burns, L.R., Bradley, E.H., & Weiner, B.J., 2011). PhyCor, Inc. was able to merge large physician groups and specialty clinics creating revenue in the millions, and continued to grow. They grew for several years before the values in stock starting falling, unsatisfied physicians, and

In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per

9. In March 2009, Madoff pleaded guilty to eleven counts of fraud, money laundering, perjury, and theft; in June 2009, Madoff was sentenced to 150 years in federal prison. 10. Fraud charges are still pending against David Friehling; he faces a prison sentence of more than 100 years if convicted of those charges. 11. KPMG became the first of the Big Four firms to be sued as a result of the Madoff fraud; the lawsuit alleges that KPMG failed to properly investigate Friehling & Horowitz while auditing the financial statements of a large “feeder firm” in which the plaintiff was an investor. 12. The SEC has announced a series of reforms to prevent or detect future frauds similar to Madoff’s; one proposal is that investment advisers be subjected to annual “surprise audits” to ensure that customer funds are properly safeguarded.

Between the years 2000 and 2002 there were over a dozen corporate scandals involving unethical corporate governance practices. The allegations ranged from faulty revenue reporting and falsifying financial records, to the shredding and destruction of financial documents (Patsuris, 2002). Most notably, are the cases involving Enron and Arthur Andersen. The allegations of the Enron scandal went public in October 2001. They included, hiding debt and boosting profits to the tune of more than one billion dollars. They were also accused of bribing foreign governments to win contacts and manipulating both the California and Texas power markets (Patsuris, 2002). Following these allegations, Arthur Andersen was investigated for, allegedly,

Caja Holdings LLC is a company that is providing bookkeeping services. It is an accounting and bookkeeping firm that is located in Indian Trail, North Carolina. They offer a broad range of services for business owners, executives, and independent professionals. Caja Holdings LLC offers services for individuals, business services, tax services, and QuickBooks services. They are affordable, experienced, and friendly.

1979: Forbes quits his day job to focus his efforts on Comp-U-Card; the company launches Comp-U-Store Online.

Question 1) Should Dannon proactively communicate its CSR activities to the public? Discuss pros and cons of your decision.

Trinity Industries Inc. is a “diverse industrial company that has managed to tap a variety of market-leading businesses providing products and services to the energy, transportation, chemical, and construction sectors” (Trinity Industrial INC. – about us). Trinity’ 2015 10K annual report was used to derive the following information. Their main headquarters is located in Texas, their state of incorporation is Delaware, and they have been publicly traded since 1958 on the New York Stock Exchange, under the symbol “TRN”. Trinity employs over twenty thousand individuals primarily in the United States, and Mexico and maintains a distinct group of clients through their five segments. The first Rail Group, which is the heart of the company earned

KPMG was one of the biggest accounting firms in the 90’s that with a lucrative end, would serve wealthy companies using forged revenues in order to avoid taxes. The accountants that worked for the firm were expected to meet certain quotas. Consequently, instead of trying to run an honest business they were trying to maximize the sales using all kinds of dishonest marketing approaches. KPMG employees used foreign banks as well as bogus law firm statements to preserve a legitimate business running. This accounting firm manipulated financial data of clients, costing the internal revenue service over 2.5 billion in lost tax revenue

On June 15, 2002, Arthur Andersen was convicted of obstruction of justice for shredding documents related to Enron’s audit which resulted in the Enron scandal. The impact of the scandal combined with the findings of criminal complicity ultimately destroyed the Arthur Andersen LLP. The company was accused of destroying thousands of Enron documents that included not only physical documents, but also computer files and Email files. By giving it the role of consultant along with their original role as external auditors, Enron made Arthur Andersen LLP a key player in Enron auditing.

The corporation 's headquarters is located in New Brunswick, in the state of New Jersey, USA; and its consumer division is located in Skillman, New Jersey.

To make matters worse, when Andersen found problems in the financial statements, they didn’t make corrections due to a conflict of interest. The concern was that if Andersen brought these problems to light, Enron would walk away and cost Andersen millions of dollars in the long run. Andersen contemplated dropping Enron as a client, but did not follow through with it. Because the audit and consulting was done at the same firm, it clouded Andersen’s judgment. Andersen employees in Houston began shredding documents and therefore brought obstruction of justice charges that destroyed the firm.