...Introduction Over the years, the US has seen and recovered from major financial setbacks. With the uncovering of each new company scandal, legislation has been swift to put ordinances and laws into place to prevent the same mistake from happening twice. Although some of the events majorly affected every American, some were swiftly and quickly identified which helped offset some of the major repercussions that could have possible be occurred. Three such laws that were implemented due to financial catastrophe include the Securities Act of 1933 & 1034, the Foreign Corrupt Practices Act of 1977, and the Sarbanes - Oxley Act. I. Securities Act of 1933 & 1934 A. Summary of Regulation * Securities Act of 1933 * First major federal legislation to regulate the offer and sale of securities * Created by Congress during the aftermath of the stock market crash of 1929 and during the ensuing Great Depression * Purpose is to make sure that buyers of securities receive complete and accurate information before investing (Graham, Hazarika, & Narasimhan, 2011) * Securities Act of 1934 * Created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect public investors B. Analysis of Related Fraud/Scandal * Crash of 1929 * The most devastating Stock Market crash in US history * Signaled the start...
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...J. Wesley Day GM 545 – Economics Keller Graduate School Professor, Suzzette Arnold March 19, 2011 The Bernard Madoff scandal occurred during a major economic crisis by operating an investment Ponzi scheme that took citizens, companies, and 501c’s for millions of citizens. A time that major banks and other firms performed poorly or failed altogether many bank executives still received high salaries, bonuses and severance. Which is an example of diseconomies of scale. This is all unethical business. While many workers are losing their jobs, taking pay cuts, or having their hours to decline, in part due to diminishing marginal returns. Authors from a Harvard Business Review article point out that managers are now losing the public trust. The article asks for colleges and universities to address management as a profession governed by codes of conduct that holds managers responsible to society for their unethical behavior. According to the business dictionary, ethics is the philosophical study of morality or standards regarding good character and conduct. In society when we apply ethical reasoning to decisions made by individuals and teams in organizations, the focus is on moral problems and dilemmas that are associated with the decision-making process that affects our society. The public image of business has been slipping since the EON scandal due to dishonesty and poor ethical standards. As companies are downsizing, they are putting more responsibility on...
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...There have been four serious financial crises and countless more corporate scandals with global implications in just the last decade. All of them driven by greed and corruption, all of them led by dynamic, charismatic business leaders who initially showed fantastic promise, innovation and financial leadership. And it seems with the most recent of these crises, many of the key players in the 2008 global recession have not only not been punished, but are still in the same positions of power and able to continue their transgressions. Here are some interesting highlights of the last decade: Enron scandal (2001): Andrew Fastow the CFO of Enron along with Kenneth Lay the Chairman and Jeffrey Skilling the CEO develop an offbalancesheet mark to market fraud that loses $11 billion and bankrupts Enron. It is the largest bankruptcy reorganization in US history at the time. They are charged with conspiracy, wire fraud, securities fraud, false statements, insider trading and money laundering. Fastow serves 6 years in prison, Lay passes away before sentencing and Skilling is sentenced to 24 years in prison. WorldCom scandal (2005): Bernard Ebbers the CEO of WorldCom loses $100 billion of shareholder value in the largest accounting scandal in US history (until Madoff). Ebbers is charged with securities fraud and conspiracy and is serving 25 years in prison. Bernard Madoff (2008): Bernard L. Madoff Investment Securities LLC heads a $50 billion ponzi scheme, the largest in history, and is charged with securities fraud...
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...SOCIALLY RESPONSIBLE INVESTING: THE MATURING OF FINANCIAL ANALYSIS Brenda Plant Can one get rich by being responsible? Yes, one can: “To look beyond the investment bottom line does not imply forgetting profits,” says Brenda Plant. To help shed light on this issue, she reviews the state of socially responsible investment in Canada, the evidence regarding its economic performance and the strategies available to implement it. She observes that the financial community remains skeptical and ill-prepared to provide that type of service and that, overall, Canada is lagging behind. To keep pace with other jurisdictions world wide, she recommends that Canada amalgamate the multitude of securities regulators into a single national body. Peut-on à la fois s’enrichir et être socialement responsable ? Oui, croit Brenda Plant : « On peut voir au-delà du rendement d’un placement sans nécessairement renoncer aux profits », dit-elle. Pour éclairer la question, elle analyse l’état des investissements socialement responsables au Canada, leur rendement et les stratégies favorisant leur implantation. Les milieux financiers restent sceptiques à leur égard et mal préparés pour offrir ce service, observe-t-elle, et, d'une manière générale, le Canada accuse en la matière du retard par rapport à d’autres pays. Pour rattraper ce retard, elle propose du fusionner en un seul organisme national la multitude des organismes de réglementation du commerce des valeurs mobilières. T he recent crisis in confidence...
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...La Trobe University CORPORATE STRATEGY MIB PROGRAM applies to any student in this class MIB, MBA or MMM INDIVIDUAL ASSIGNMENT Worth: 40% of your total mark IF YOU DON’T UNDERSTAND THE QUESTION, YOU CAN’T ANSWER IT ASSIGNMENTS • An assignment is not about telling a story, story or giving an explanation. explanation • It is about research, analyses and consideration • It is also about answering the question being asked. ASSIGNMENTS • Assessment Criteria • Research • Analysis • Understanding • Argument • Structure Explanation ≠ Analysis ASSIGNMENTS • Must use the readings in the Subject p g , q g Outline – page 3, the Required Reading • 1 500 words minimum – 2 500 words 1,500 d i i 2,500 d maximum • Ho e cellent m st these words be? How excellent must ords ASSIGNMENTS : # 1 “ Better a consistently applied mediocre gy, strategy, than a series of ad hoc brilliant strategies.” Do you agree with this statement? • Discuss using: • At least 3 theoretical perspectives and perspectives, • At least 3 organisational examples What is Strategy? • St t Strategy is a set of i t f • Objectives, • Policies and Policies, • Plans • taken together define the scope of a business and together, its approach to survival and success. • We could also say that the particular policies, plans, and objectives of a business express its strategy for coping with the complex competitive environment environment. • Each Business Strategy is unique. ASSIGNMENTS: # 2 “ In usual...
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...A.1 Horizontal, Vertical, Trend and Ratio Analysis Executive Summary The financial assessments of Competition Bikes, Inc. (CB) are based upon the income statements and balance sheets from Calendar Years 6, 7 and 8 to gauge the operation efficiencies of the company. In general, the analysis shows that, between Year 6 and 7, Competition Bikes, Inc. had a large growth in new earnings that was not capitalized in Year 8. The Net Earnings has moved from a positive 313.4% down to a -81.6% loss. This will be evaluated in detail below. A.1.a. Horizontal Analysis Results Horizontal Analysis is the comparative analysis of each line item across the timeframes of the company and is calculated in dollars and percentages. The analysis will look at how the accounts have changed from one year to the next. The formulas used are: Dollar change = This Year’s Balance – Last Year’s Balance Percent change = Dollar Change . Last year’s Balance The horizontal analysis will provide an analysis of the financial performance of Competition Bikes, Inc. and provides an overview of potential trends of the company (Ashfaq, n.d.). The horizontal analysis between Years 7 and 8 further shows that total revenues decreased by 15.0% and total expenses decreased by 69.1%. As result of this, Earnings Before Income Taxes (EBIT) also decreased 313.4% and net earnings reduced by 81.6%. INCOME STATEMENT The horizontal analysis is based on the income statement for Years...
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...Nation Address I The numerous islands of the Philippines lend their attentions on the President’s annual report of the countries status on his State of the Nation Address. Local TV networks, radio stations and the social media served as the instrument for the citizens to listen to what the President is about to convey. Aquino’s 6th and last SONA was delivered last July 27, 2015, highlighted the following issues and affairs. Comparison to the Former Administration After the President’s greetings to the mass, he started pointing out the past administration issues and affairs. He’s still blaming Arroyo’s presidency for the problems the government is facing during his term. He also mentioned scandals and controversy, like the, Fertilizer Fund Scam, NBN ZTE Deal, Hello Garci Scandal, and the Maguindanao massacre, the former government has brought to the country and the troubles that was carried-over to him. The President seemed to expose how corruption worked on the former admin. Appointment of Government Officials In connection with the corruption issues of the previous government, he pointed out what his administration has done during the early years of its term. He gave focus on the appoint of the officials whom stand with integrity and trust and the removal and conviction of some officials of corruption, like ex-CJ Corona and Senators Estrada, Revilla and Enrile. He also gave recognition to those cabinet members who have done a great job on their units like Tax Commissioner...
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...FROM GREAT TO GHASTLY: HOW TOXIC ORGANIZATIONAL CULTURES POISON COMPANIES THE RISE AND FALL OF ENRON, WORLDCOM, HEALTHSOUTH, AND TYCO INTERNATIONAL David R. Lease, Norwich University Abstract This paper presents an analytical and comparative study of four recent corporate scandals involving organizations that had previously been recognized as both ethically and organizationally sound. Based on these case studies, the following issues are discussed: (1) The role of leader behavior and organizational/leadership styles in shaping the corporate organizational culture of an organization, and (2) The extent to which this culture renders the organization and its members (including the top executives) prone to ethical misbehavior. The four companies selected for this case analysis are: Enron Corporation, WorldCom, Inc., Tyco International, Ltd., and HealthSouth Corporation. Each case is considered individually. The basic elements in the scandal are outlined and the principal aspects of each organization’s corporate culture discussed, with special emphasis on the influence of leadership styles and leadership behavior/practices on organizational culture. The four cases are then compared and contrasted in the light of the existing evidence on the relation between corporate culture and ethical misbehavior. PRELUDE “We were doing something special. Magical. It wasn’t a job – it was a mission. We were changing the world. We were doing God’s work.” – Jeffrey Skilling, former Enron COO, President...
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...Book Reference Chow, T. W., & Cummings, J. L. (2000). The amygdala and Alzheimer’s disease. In J. P. Aggleton (Ed.), The amygdala: A functional analysis (pp. 656–680). Oxford, England: Oxford University Press. Formatting Dissertations Long, M. (2007). School media librarians as transformational leaders (Doctoral dissertation). Available from ProQuest Dissertations and Theses database. (UMI No. 329321) Study Notes: Common APA Style and Formatting Challenges The following guidelines are followed by most faculty members on most Walden coursework, theses, and dissertations. Occasionally, Walden faculty will ask for slight variations on these rules. 1. Font: Use a 12-point serif font, such as Times Roman, Garamond, , Palatino, or Century Schoolbook. Titles, headings, and table titles and copy should also appear in the same 12-point type. 2. Spacing: Double-space all of your work, per guidelines in the 6th edition of the APA style manual. Per APA, you should insert two spaces after a sentence ending period, although many Walden members allow a single space after a period. [A single space is fine for Dr. Mahoney.] For all assignments, be careful that your word processing program does not put extra line spaces before or after paragraphs. You can change that under Page Layout, Paragraph, Spacing for Windows 7. 3. Margins and page numbers: All margins should be 1" from the edge of the paper. Page numbers go in the upper right corner, 1" down and 1" in from the...
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...Abercromie & Fitch Abercrombie and Fitch Co. (« A&F ») is an international fashion retailer selling apparel, fragance and luxury products to young customers. The brand describes itself as « casual luxury ». They developed a strong brand image based on provocative communication and specific in-store experience that fits with the cool lifestyle it promotes. However, sales have been dropping for years and do not seem to be going in the future. In 2013, the firm closed about 220 mall stores and entering December 2014, profits were expected about $106 milions, less than half of what they had been in 2012. Fitch’s performance is declining fastly, and it can be explained through internal and external factors. Some of these factors include lack of sustainable competitive advantage, public relation issues that affected the brand’s identity and image, rise of fast fashion competition and its struggle with its brand position and pricing while the consumers’ preferences are changing. Through examining these various elements, it is clear that Abercrombie and Fitch must take a diverse approach in order to revitalize its brand and maintain profitability. First of all, one of the main internal issues that led to Fitch’s decline was their lack of sustainable competitive advantage. Indeed, A&F views brand image as its most important asset, and their postioning enabled them to set premium prices on their apparel. They lost their audience and brand image these past years ; in...
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...Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations and budgets.” (2)...
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...Peter Demerjian 02/24/2013 ACT 563 Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations...
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...market and better compete with the local companies, both Coca-Cola and Pepsi participated in local festivals, released TV campaigns featuring local celebrities and got local athletes to promote their products. Other measures that the two American brands utilized included lowering the price of their products and introducing new product categories. However, just as they were gaining market share, an issue regarding the presence of pesticide residue in their drinks resulted in several partial bans in various Indian states. Their silence about it and their slow response caused them to lose important customers. Coke also faced another controversy with one of its plants in Plachimada, which was allegedly using sparse water supplies. II. ANALYSIS A. PEST POLITICAL · Government opened the Indian market to foreign investors · Government warned the industry players that an ingredient used in...
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...Corruption in Nigeria: A New Paradigm for Effective Control Written by Victor E. Dike Published on 30 November -0001 Created on 18 November 2003 • Print • Email Posted by Victor E. Dike in Guest Articles on November 18, 20030 Comments | inShare Causes of Corruption The causes of corruption are myriad, and they have political and cultural variables. Some studies point to a link between ‘corruption and social diversity, ethno-linguistic fractionalization, and the proportions of country’s population adhering to different religious traditions’ (Lipset and Lenz, 2000). Yet, other studies note that corruption is widespread in most non-democratic countries and particularly in countries that have been branded ‘neo-patrimonial,’ ‘kleptocratic’ and ‘prebendal’ (Hope, et. al (eds.) 2000; Lewis, 1996; also see NORAD 2000). Thus the political system and the culture of a society could make the citizens more prone to corrupt activities. Recently, the International Olympic Committee (IOC) had to relieve some of its officials of their posts recently because they were corrupt. And it was not too long ago that all the commissioners of the European Union (EU) resigned because they, too, were found to be corrupt beyond acceptable limits. And quite recently, the Enron Corporation (energy giant) and World-Com (a telecommunication company) in the United States were perceived corrupt because they ‘manipulated their balanced sheets, profit and loss account and tax liabilities.’...
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...The Uses and Abuses of Agency Theory in Business Ethics The spectacular corporate scandals and bankruptcies of the past decade have served as a powerful reminder of the risks that are involved in the ownership of enterprise. Unlike other patrons of the firm, owners are residual claimants on its earnings.1 As a result, they have no explicit contract to protect their interests, but rely instead upon formal control of the decision-making apparatus of the firm in order to ensure that their interests are properly respected by managers. In a standard business corporation, it is the shareholders who stand in this relationship to the firm. Yet as the recent wave of corporate scandals has demonstrated once again, it can be extraordinarily difficult for shareholders to exercise effective control of management, or more generally, for the firm to achieve the appropriate alignment of interests between managers and owners. After all, it is shareholders who were the ones most hurt by the scandals at Enron, Tyco, Worldcom, Parmalat, Hollinger, and elsewhere. For every employee at Enron who lost a job, shareholders lost at least US$4 million.2 Furthermore, employees escaped with their human capital largely intact. Creditors and suppliers continue to pick over the bones of the corporation (which still exists, under Chapter 11 bankruptcy protection, and continues to liquidate assets in order to pay off its debts).3 But as far as shareholders are concerned, their investments have simply evaporated...
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