The Adelphia Communications scandal Essay

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Introduction The Adelphia Communications scandal occurred in March, 2002 when three of the original founding family members which included the father John Rigas, and two of his sons Michael and Timothy, along with two other company executives were arrested for improperly taking assets from the nation’s sixth-largest cable television company. The scam involved one of the biggest financial frauds faced by a publically held company. In the end stakeholders were forced to absorb massive losses as their shares in stocks fell sharply. The Rigas family hid billions of dollars in debts by falsifying its financial records, and blatantly lying to their investors about it. They recklessly spent millions of dollars of company funds that…show more content…
The second duty is the right’s theory, which is a justified claim against another person’s behavior. Rights and duties are related in way that it implies the rights of one are the duties of another. (Johnson, R. 2008). For example, if I work for you then it is my right to be compensated and at the same time it is your duty to pay me. Therefore it is our duty to always do the right thing which is why it is considered to be universal law. Categorical Imperative in Kant's version of the duty-based ethics he intended it to be the basis of all other rules; a 'categorical imperative' is a rule that is true in all circumstances. In Kant’s formula the universal law states that we ought to act in conformity with that maxim, and that maxim only, which can at the same time, will to be a universal law (Pecorino, P. 2000). In other words it says that something could only be a moral law if it applied to everyone. For example stealing, we don’t think stealing is good because we certainly wouldn’t want others stealing from us because if they did then we wouldn’t know how to trust anyone and it would be destructive to both our society and our economy. Deontological framework Falsifying financial documents when we apply the deontological framework of business ethics to the problem of falsifying financial documents we must first recognize the importance of the decision making process. Since decisions often affect more than the people
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