Essay On Siemens Scandal

Richard Scrushy defrauded, stakeholders, stockholders, and the community out of millions of dollars. His deceptive, unethical, and commanding behavior was the stone that caused the biggest misappropriation avalanche of all time. We must consider this question, how is corporate cheating happening and who is heading the deception? Behind every crime, there is a ringleader or a group of individuals "calling the shots." In this case, Scrushy was the one who told his "family meeting members" to "fix" financial records, so HealthSouth to meet or exceed the business financial goals. A person from the beginning may have the objective to cheat; others get sucked into the whirlpool of white-collar crime.

The organizational structure for govWorks.com was constantly changing throughout the lifetime of the company. The firm started as a horizontal organization since there were only 8 employees to begin with. The structure was a good fit for the size because it was more effective for the members to share tasks and have face-to-face communication. Hierarchy also did not make sense in that stage of life of the company as it will only lead to unnecessary confusion between the roles and responsibilities of each member. As the company became bigger, the number of employees grew to become 233. The company then adopted a vertical structure because hierarchy and rules now became necessary to manage a greater number of employees. Teams and task forces also helped to better manage

Ray Bowen, a Citigroup banker at the time and now Enron's chief financial officer, once asked Mr. [Andrew Fastow] about a batch of complex equations that filled a whiteboard in the conference room next to the Mr. Fastow's office. "You can't tell me you understand those equations," Mr. Bowen commented to Mr. Fastow. Mr. Fastow replied: "I pulled them out of a book to intimidate people."

Organizational Hierarchy Structure- Toys R Us was a decentralized organization, which had a leadership type setting from country to country. This type of structure was difficult because all the leaders from different countries were not communicating effectively. The company knew they had to make some changes to the system, if they wanted to be successful. Therefore, after careful consideration, the company decided to move to a more centralized structure. This change was needed to strengthen their business with regards to their compatibility amongst countries and creating a more efficient workplace in the United States and abroad. In the company’s business in Europe, instead of their being different leaders across the continent, there will

Mr Groves’ corporate governance practices were poor, and is currently in legal proceedings regarding interparty transactions, this was certainly news worthy, and damaged the company’s reputation and slowed investor confidence. Additionally, the price paid to companies was deemed to be above market norms, siphoning more money from the companies depleted coffers.

Within two years, DecisionTech, Inc. had built a reputation as the top technology company in the country. They had a strong business plan that would lead them into the next stages of new technology and investors were lining up to get a piece. Furthermore, they had young qualified engineers submitting resume’s regularly in hopes of employment. However, after a while, their executive team developed internal conflict and was unable to lead this bright and promising company to the next stage. Word of these actions had circulated and the company had now become known for having personal political agendas and backstabbing; therefore, the Chairman of the board demanded change.

Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all

Health South’s famous scandal occurred in 2002, as soon as the CEO Richard M. Scrushy rapidly sold a stock of $75 million dollars just a few before the company faced a major loss. The accounting scandal was taken in accusation by the SEC-U.S Securities and Exchange Commission in which HealthSouth earnings were falsely inflated by $ 1.4 billion, the reason behind this was Srushy’s orders; him purposely instructing the company’s senior officers and the accountants to make false company earnings reports, so the investor could be pleased and all his expectations would be considered to be met. This fraud created by Scrushy and involving the company’s most senior individuals persisted for around seven years. During these years; the company’s earning

On March 15, 2005 former CEO of WorldCom, Bernard Ebbers sat in a federal courtroom waiting for the verdict. As the former CEO of WorldCom, Ebbers was accused of being personally responsible for the financial destruction of the communications giant. An internal investigation had uncovered $11 billion dollars in fraudulent accounting practices. Later a second report in 2003 found that during Ebber’s 2001 tenure as CEO, the company had over-reported earnings and understated expenses by an astonishing $74.5 billion dollars (Martin, 2005, para 3). This report included the mismanagement of funds, unethical lending practices among its top executives, and false bookkeeping which led to loss of tens of thousands of its employees.

1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices.

From the time of WorldCom’s inception there always seemed to be a tradition in management as if the company was only 100 or so employees. There was a “good old boys” mentality among the limited few running the company and if you were outside that circle then were told only what they wanted you to hear. An unspoken rule among employees was to do what you were told without questions or risk the consequences. One example of this situation occurred when senior management member Gene Morse told an employee “If you show those damn numbers to the f****ing auditors, I’ll throw you out the window” (Kaplan, R.S., & Kiron, D., 2007, p. 3).WorldCom showed no concern regarding an employee’s need and obligation to voice concerns on matters related

In the aftermath of the scandal, there were negative, long-reaching effects on a variety of stakeholders.

* Lack of Information and communication across divisions Each division maintains its own marketing, manufacturing, logistics and administrative departments (Silos)

Many ethical issues have been surfacing in the last decade due to the hand in hand prosper of international business globalization. The ethical concerns include corruption, bribery, human rights issues among many others. Business ethics is a form of professional ethics or applied ethics that examines moral or ethical problems that arise in a business enviroment. It involves the application of moral behavior to business situations (Adeyeye, 2012 p 22). Bribery is the offering, receiving, soliciting, and giving of something of value in order to influence an action of an official or company in offering of legal or public duties. A bribe is a gift that is bestowed in order to influence the recipients conduct and the extent of the influence

The company faced issues related to the methods it used in investigating the unauthorized disclosure of nonpublic information to the press by the members of its board of directors. Apparently, Hewlett Packard hired some investigators in the case. The investigator used various techniques such as pre-texting- calling the telephone company and pose as someone else with an aim of obtaining that person’s information or records. The company and the board chairman, Patricia Dunn, were defending the company’s investigations about the director and the journalist. They cited that there were aggressive efforts to note the core source of leaks that were fully justified by the investigators