...Managerial Organization Jeanette Melchor LDR/531 Organizational Leadership University of Phoenix March 21, 2013 Prof. Miguel Rodriguez Managerial Organization The Daewoo organization was successful but they collapsed committing a fraud of billions of dollars of accounting fraud, one of the biggest on history. Daewoo’s CEO was sentenced to eight years in prison and he had to pay a penalty of $22 billion. Daewoo’s failure didn’t stayed in Korea but demised foreshadowed corporate scandals and debilitating the confidence in financial markets and corporates are around the world’’. According to Joongi Kim. "A Forensic Study of Daewoo's Corporate Governance: Does Responsibility for the Meltdown Solely Lie with the Chaebol and Korea? “ Leading investments banks, securities analysts, financial institutions, credit agencies and account firms all over the world failed to address its problem. During the peak of the Dawoo was a company with almost thousands of employees in 500 local and global companies that worked in over 100 countries and their management received academic recognition and awards for the success that they had”. “The Daewoo collapsed served as one of the earliest warnings signs of management breakdown that spread all over the world. Daewoo’s CEO Kin Woo- Chong failed to follow basic legal and managerial principles such as internal control, accounting and financial discipline. In one point they put too much emphasis...
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