Company and its business

Description

For both scandals Explain the following:

1. The company and its business.
2. What behavior the company exhibited prior to the ethic incident.
3. Describe in detail the unethical action the company was involved in. Explain the
   following:
   a. The situation.
   b. What unethical behavior or action took place?
   c. Corporate offices involved.
   d. Any other stakeholder involved.
   e. Managerial and Leadership implications and impact on stakeholders.
   f. Legal ramifications.
4. Describe the outcomes of the situation.
5. How did it affect the company?
6. How did it affect the employees?
7. How did it affect other stakeholders?
8. How did it affect society?
9. Did something good come out of the situation?
10. Can it be prevented? How?
11. Conclusions – Final recap of important points.

Sample Solution

Examples of Scandals:

 Enron accounting fraud, involving Arthur Andersen.
 Fannie Mae underreporting of profit.
 Options backdating involving over 100 companies.
 Tyco International
 WorldCom
 AIG[3] - American International Group, Inc. (AIG)
 Xerox[3][4] alleged accounting irregularities involving auditor KPMG, causing restatement
of financial results for the years 1997 through 2000 and fines for both companies.
 Freddie Mac
 Other scandals listed here: http://www.accounting-degree.org/scandals/