The Price of Unethical Behavior Essays

During my courses, I frequently remind students that most corporate executives, accountants, and auditors are honest and ethical. This case provides a stark and powerful example of one such individual. When I discuss a case such as this in my courses, I try to provide other examples of positive role models among corporate executives. Granted, most of these examples do not involve accounting or auditing matters, but, nevertheless, they help to blunt the impression that students may receive from studying my cases that most corporate executives are “crooks.”

This now bankrupt company, misappropriated investments, pension funds, stock options and saving plans after deregulation and little oversight by the federal government. However, with deregulation an increasing competitive culture emerged as the CEO Jeffry Skilling motto to his organization was to “do it right, do it now, and do it better” this was the rally cried that pushed ambitious employees to engage in unethical behavior as Enron use deceptive “accounting methods to maintain its investment grade status” (Sims, & Brinkmann, 2003, pp.244-245). As Enron continued to flourish and received accolades from the business community this recognition drove executives to continue the façade of bending ethical guidelines before their public fall from

A. Belnick, Dennis Kozlowski, and Mark Swartz. They were charged with falsifying business records in order to conceal their questionable tactics in regards to getting loans without obtaining anyone’s approval. The earnings per share was affected negatively by the fraudulent record keeping, and the president of the Fire and Security division, Jerry Boggess, was an accomplice and fired as a result . After avoiding a million dollar tax bill for the purchase of artwork worth $14 million, Dennis Kozlowski was indicted for tax evasion by the DA of New York. Richard Scalzo was responsible for auditing the financials of Tyco. He participated in improper conduct because he did not implement the proper measures within his audit duties as it pertains

Enron made greater use of social control as a means of guiding employee action, however, the company did have limited methods of formal control in place. By using social influence tactics, limiting dissenting opinion, and inflicting a sense of high cohesion among employees, Enron deceived millions into believing the company was more profitable than it actually was. Because Enron’s values and norms were not conducive to a successful, ethical company, the employee’s targets, attitudes, and behaviors led to Enron’s undesirable outcomes. (O’Reilly and Chatman 165) Enron’s downfall can be largely contributed to its norms and values, of which were not strategically appropriate. Enron valued money above all else, which was

In conclusion, Kozlowski and Swartz were both found guilty of breaking the law on different accounts, and receiving jail time as a part of their sentences was the correct punishment (Sorkin, 2002). These two men stole hundreds of millions of dollars from Tyco International through fraudulent claims, and used the money to pay for houses, apartments, events, and shopping expenses (Sorkin, 2002). Over the amount of time Kozlowski and Swartz were stealing from their company, they had a plan of how they were going to obtain extra profits, which was committing fraud and scamming the customers and company, and even the employees (Sorkin, 2002). It is important that large corporations, and even small businesses, do not oversee white-collar crime because

At the BSSL we would like to make work a legal, profitable, and comfortable environment to be at during your careers here with us. We are going to start implementing an open door policy. We want all employees to feel they can speak with any member of management, without risk or fear of loosing their jobs, if they feel uncomfortable about something they are asked to do here. Also, all employees need to keep their eyes and hears opened for illegal and unethical behaviors. If an unethical or illegal behavior is reported and proven we would like to offer the employee that comes forth with the information a reward to show our

I believe that is best for all of those involved to deal with ethical transgressions behind the scenes and not in the presence of others. Often times penalizing someone in front of fellow employees can escalate the situation further. Honestly, if it does reach that point, it’s a situation where no one wins. I know in my organization it is dealt with discreetly and then the situation, not the person, may be addressed at the following meeting if our supervisor feels that others need to be aware of what is or is not appropriate. These types of open discussion can lead to better ethical decisions in the future (Ferrell, Fraedrich, & Ferrell, 2013). I try to look at it from both sides, I don’t want to be scolded in front of other and an example

Working with people on a daily basis for over 25 years, I have learned to recognize personality traits with colleagues and people I have serving. As I grew in my profession, I also, understand more of the ethical procedures on how to handle certain scenarios. Currently, I have to apply HIPPA procedures in everything I do on the computer, talking on the phone, and face-to-face with clients and colleagues. In a case scenario, I hear of some co-workers Mary and Jerry debating on reporting an ethical violation and hearing this causes concern of a decision to confront the them. More times than so, a colleague had not been approached by this concern (VandenBos and Duthie, 1986).

It is not uncommon to find some type of corruption within law enforcement agencies if you dig deep enough. However, once discovered there must be a disciplinary measure that is taken to prevent further corruption. Ethical complaints can be filed by following the appropriate processes and procedures. Although policies vary from department to department, there is a specific code of ethics that each department functions by following.

In the aftermath of Tyco’s executive scandal in the early 2000’s, Ed Breen and Tyco’s newly elected management team were vital elements to the repair of Tyco’s corporate social responsibility and company image. During this time, Tyco International began focusing on the repair of internal weaknesses and devised several initiatives to improve their image and reform their values.

Ethical behavior is often seen as amoral when used for persuasive purposes. This is possible because persuasion may be used in unethical situations as well as ethical situations. Either way, it depends upon the person who is trying to persuade others. Adolf Hitler is an excellent example of someone who persuaded millions of people to behave unethically. On the other hand, Mother Teresa used persuasion for ethical reasons by caring for the sick and the orphaned, and because of this has impacted an entire world.

McCabe has said that an estimated seventy percent of college students have admitted to some type of cheating. He supports this claim by saying that the parties to blame here is the school system and the media. HBU defines academic dishonesty to when a student cheats or steals someone’s work and passes it as their own among these are a list of actions that count for academic dishonesty. Some examples being brought up about dishonesty is how in the NFL saw past the deflating incident in the Super Bowl were it seems like the media praised the player for his actions (Loschiavo). Therefor, students think it is correct to do be dishonest in their class work.

A key factor to Enron’s fall from grace, was due to the foibles of its corporate leadership, in particular, how certain executives were willing to overlook unethical behavior in lieu of profits. For example, Ken Lay, Enron’s Chairman, espoused the ideals that Enron had higher level of morals than the average company (Gibney, 2005). However, on several instances, he failed to enforce or show that level of commitment. In the Vahalla case, he allowed traders that were involved in manipulating and gambling the company’s earnings to continue their operations, despite being warned of their fraudulent behavior (Gibney, 2005). His justification, at the time, was that Vahalla was the only part of the company that was making any money (Gibney, 2005).

Kozlowski knew Tyco from the bottom up, and stated that he was determined to make it the greatest company of the next century. Because of Kozlowski’s success the board rewarded Kozlowski’s performance by increasing his salary to $2.1 million and giving him shares of the company’s

The overwhelming facts point to a shady underworld of self-dealing and opportunistic exploitation of the poor and working class, which was until recently, well hidden from the commoner. The executives of WorldCom and Enron provide real world examples of unethical business practices, where the desire to make money for their shareholders transcended into an addiction to greed and self-dealing that were displayed by their, “excessive pay, perks, and golden parachutes”(Carson 392) at the expense of all stakeholders. All is not lost, there are corporations that pride themselves in their sound business model and commitment to ethical business practices. Such companies as Eaton Corporation, and Weyerhaeuser, who according to Ethisphere.com, a business ethics watchdog, are among the “2010 World`s most ethical companies.” (Ethisphere)