Ducati

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accustomed to was a big challenge to start out with. However the outcome of this

This paper was conducted as a Discussion Board Post assigned by Professor J. Reinke of: Liberty University, Graduate School of Business, Lynchburg, Virginia 24515.

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Fall 2009 This case was prepared by Itir Karaesmen and Inbal Yahav of Robert H. Smith School of Business at University of Maryland, College Park. The names, locations, and other information included

This case was written by Rhonda Engleman and Jisun Yu under the supervision of Professor Andrew H. Van de Ven of the Carlson School of Management at the University of Minnesota. We also appreciate the editorial assistance of Julie Trupke and useful comments of Gyewan Moon and Margaret Schomaker. We gratefully acknowledge Stuart

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authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised

“In my opinion, the Case would be improved by including the following summary” An American agriculture of the nineteenth century Cyrus McCormick, invented a company that produced farming equipment called McCormick Harvesting Machine Company. In 1902 his son Cyrus McCormick II merged the company with three competitors renaming it the International Harvester Company. By the late 1980’s the company had moved from producing farming equipment to manufacturing automotive products, trucks, and school buses. In the late 1980’s International Harvester company was renamed Navistar International Corporation. Over the years NIC changed and one of the most dramatic changes was the relationship with its longtime auditor Deloitte. (Knapp, 2015)

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Records falsification was not the only illegal activity the Rigas family was wrapped up in. The family used company funds, unbeknownst to their investors, to finance personal endevours and interests. Examples include using corporate money to build a $12.8 million golf course on the Rigas property, using the company plane for personal vacation trips including a safari to Africa, and funding for two Manhattan apartments for his family (Markon, 2014). Not only this, but John Rigas purportedly used the company jet to fly a Christmas tree two times to his daughter in New York (Barlaup, 2009)! All of these incidents are just brief excerpts of the fraud and misuse of company funds that John Rigas and his family committed without any intention of ever paying back into the company. These actions, namely lying and stealing, prove to be the heart of the two moral issues that will be further analyzed.

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