The Cleanco Scandal

The Enron and WorldCom scandals were arguably the incidents that permanently changed the procedures for accounting controls. In response to these incidents, the Sarbanes-Oxley Act (SOX) of 2002 was passed. Once the knowledge of these scandals was made public, a number of subsequent accounting scandals were discovered in public companies such as Tyco International, HealthSouth, and American Insurance Group. In addition, a then-employee-owned company, Post, Buckley, Schuh & Jernigan, Inc. (dba PBS&J, now known as “Atkins North America, Inc.”), was also hit by a similar accounting scandal. Henceforth, a case study of PBS&J is presented where we will examine the fraudulent transactions that

Prior to the Tyco scandal, the company was one of America's largest conglomerates, with operating revenues of 38 billion dollars and 240,000 employees, worldwide. Tyco Laboratories began operations in 1960, performing experimental work for the U.S. government. The firm went public in 1964 and quickly expanded, mostly by acquisition, to exploit the commercial applications of its work. Dennis Kozlowski joined the company in 1975 as an assistant controller. The company subsequently shifted its focus from growth to profits within its three primary divisions: fire protection, electronics, and packaging. Kozlowski joined Tyco's board in 1987 and became president and chief operating officer two years later. Kozlowski

Organizational misconduct is the chief cause behind corporate accounting scandals. The trusted executives of the corporation participation in actions during a scandal are corrupt and illegal. In the United States, the Securities and Exchange Commission (SEC) is typically the government agency that investigates such scandals. One of the most notorious corporate accounting scandals in the United States is the HealthSouth Corporation scandal of 2003. HealthSouth Corporation is one of the United States largest health care providers with locations nationwide. A deeper inspection of the HealthSouth scandal is needed to understand how it transpired by assessing how it was executed, the accounting issues and root of the issue, how it was exposed, the results to the company and its officers, and warranted ramifications as an outcome of the scandal.

Hospital waste is one of the world’s growing problems. Hospitals on average produce 29 pounds of waste per staffed bed in just one day (2016). One of the reasons for medical waste is that a large amount disposable products used for sanitary reasons such as drapes, basins, and sponges (Conrardy J et al, 2009). However, new methods using reusable products in operating rooms have provided a means to decrease the regulated medical waste generated by an average of 65% (Conrardy J et al, 2009). Even if the hospital bureaucracy is unconcerned with the environment. These changes reduce the cost of waste disposal (Conrardy J et al, 2009). On the social side of progress, nonprofits like Practice Greenhealth provide sources for environmental solutions for the health care sector. At the hospital’s request, they can send information packets to help inform hospital staff on more environmental purchases such as the “Less Waste member-only toolkit”

Bell, a city of 35,000 people, has remained to be the greatest scandal in California. For a long time, the manager of Bell City Robert Rizzo and the people he was working with exploited the governance systems and the finances of the city (McGrath 122). They used vast sums of money to pay their salaries. They also transformed the development agency of the town into a piggy bank, from where they borrowed funds in an improper way, deposited money in retirement accounts that was illegal, purchased property without accounting in and documents, approved fees and taxes that were illegal and found out a way of exempting themselves from state law. Court documents provide evidence to show that indeed, those people committed the crime of corruption.

Each organization must exercise their power of sight in ethics in many different ways. An organization may not be able to notice that by making some offering of few dollars in new health care equipment and a special supply of medicine that a patient needs it is worth sacrificing the ethics and cuts the patient process.

As said in every economics class, the reason every business goes into business is to make money. The same can be said in criminal cases involving businesses. In the majority of cases, executives and people highly ranked in the company tend to bend the numbers in the financial/accounting areas of the business or corporation. They do not do this for fun, but rather to make money. Something needs to be done before corporations really get out of hand.

How could you effect immediate change to decrease this identified waste practice in health care?

In the "kids for cash" scandal I believe the kids and the parents were the one's hurt with Ciavarella's unethical actions and decisions. Even though Ciavarerlla, Conahan, Mericle, and Powell paid the price and were guilty for various charges, the time lost while in juvenile cannot be returned to the children. They wasted their childhood and adolescent years in jail, away from friends and family. Some even developed post-traumatic stress from the events. No child should suffer because of adults greed for money.

It would be convenient to start this research paper by stating that corruption is a challenge mainly for businesses in developing countries and that it is unrelated to the current affliction of the economy in the United States. It would also be convenient to claim corruption has declined in America as a result of awareness raising campaigns and the numerous anti-corruption laws. But none of those aforementioned statements would be true. Corruption is not the exception, but rather the rule in today’s business practices. In 2004, Daniel Kaufmann, a senior fellow at Brookings Institution and former director at the World Bank, calculated an index of "legally corrupt" manifestations which is defined as the extent of undue influence

In light of the recent scandals that rose around big multinationals such as Enron and WorldCom, it has become evident that reform in the traditional corporate operations and objectives was to be encompassed in the organisations corporate strategies. Indeed throughout the years, companies main objectives were defined primarily as being economic objectives, Multinationals developed with sight of profit maximisations regardless to the other incentives, Friedman considered that to be the foundation for a well-managed company, it was further considered that the financing of any other sort of social corporate activities rather unnecessary. The expenses were regarded as expenditures for the owners and investors; this was a time where shareholders rights were regarded as conflicting with other constituents namely the employees, creditors, customers or the community in general. However this interpretation is seen as rather inadequate due to the nature of the amalgamated relation between both constituents. Stakeholders in modern corporate doctrine are considered as a core apparatus for the well functioning of a business. It is however often argued that the only way for a corporation to achieve better results and maximise its profits is to include other people in the process, individuals or organisations with direct or indirect interest in the well performance of the company, that is the reason why modern regulations and codes include a number of stakeholders other than the

HealthSouth Corporation is based in Birmingham, Alabama, it is the largest provider of rehabilitative health care services. It operates in 26 states in the United States of America and in Puerto Rico. HealthSouth provides rehabilitation hospitals, long term heightened care hospitals, outpatient rehabilitation satellite clinics and home health agencies.

Avco is acting in a right vs. wrong manner because they are getting rid of medical waste from hospitals which is necessary to keep hospitals clean. However, they are acting in a wrong manner because they are dumping the toxic medical waste in a municipal landfill instead of a special landfill in order to save money and gain a profit. Another ethical issue is that they are knowingly breaking the law set by the Environmental Protection Agency. The EPA has banned the disposing of toxic waste in ordinary landfills, for which they have special landfills to get rid of such waste. Now, that Chantale is aware of this issue, if she does not say or do anything to make this issue be addressed, she is just as guilty as the company managers even if she has no influence. Avco lacks Corporate Social Responsibility and only caring about giving shareholders more profit. The last ethical issue is that public health is being compromised and people are unaware that it is happening in their community. According to Eckardt Beck, author of the article The Love Canal Tragedy, there is nothing wrong with disposing hazardous waste in landfills as long as they are “properly sited, managed, and

This research paper will explore the fraud at Tyco and focus primarily on accounting and auditing issues related to the fraud. One thing worth noting about this case is that fraudulent financial reporting was not at the core of the fraud, which was the case with majority other big frauds at the time, such as Enron and Waste Management. On the contrary, fraud consisted of misappropriation of assets, and fraudulent financial reporting came as a consequence of trying to hide misappropriation of assets and the use of corporate money for personal benefit.

Ethics in the business world can often times become a second priority behind the gaining of profits and success as a company. This is the controversial issue that led to the Enron scandal and ultimately the fall of this company. Enron Corporation was an energy company, and in the peaks of their success, they were the top supplier of natural gas and electricity throughout America. Enron Corporation came about from a merger between Houston Natural Gas and InterNorth. Houston Natural Gas was a gas providing company formed in Houston during the 1920’s. InterNorth was a company formed in Nebraska during the 1930’s and owned one of America’s largest pipeline networks. In 1985, Sam Segnar, the CEO of InterNorth bought out Houston Natural Gas for $2.4 billion. A year later in 1986, Segnar retired and was replaced by Kenneth Lay, who renamed the company and created Enron. Enron was the owner of the second largest pipeline in America that measured over 36,000 miles. The company was also the creator of the “Gas Bank”, which was a new way to trade and market natural gas and served as an intermediary between buyers and sellers. As the company continued to develop, it became more of a trader rather than a producer of gas. This trading extended into coal, steel, water and many other areas. One of Enron’s largest successes was their creation of a website called, “Enron Online” in 1999, which quickly became one of the top trading cites in the world. By the year 2000 Enron as a company was