...Wal-Mart Unethical Business Practices - Business Research Paper Wal-Mart, the big giant, the place where a lot of people usually do their shopping for the low prices and the variety of products was founded by Sam Walton. Walton was an entrepreneur with an innovative vision, started his own company and made it into the leader in discount retailing that it is today. In fact, Wal-Mart is considered to be the biggest company in the U.S. and it has stores worldwide. According to PBS, “Wal-Mart employs more people than any other company in the United States outside of the Federal government, yet the majority of its employees with children live below the poverty line.”(www.pbs.org) In addition, Wal-Mart likes to portray itself as a seller of U.S. manufactured goods but in reality the company has products on its shelves made in foreign countries and at questionable workshops. It would seem that Wal-Mart encourages “made in the USA” but it really encourages products made outside the. Corporate Watch: Walmart [pic] In the past 10 years, Wal-Mart has grown to become the largest retailer in the world. As America's largest employer and most successful company, Wal-Mart has tremendous influence. However, the company's business practices have negative impacted its employees throughout the country. Wal-Mart has let American workers down by lowering wages and forcing good paying American jobs overseas. Its leaders have chosen to cut costs and violate labor laws. As a result of these practices...
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...chorus of outraged investors, employees, pension holders and politicians are demanding to know why Enron's failings were not spotted earlier. And the US Justice Department is thought to be trying to charge several executives for fraud and money laundering. Prosecutors have come to a deal with one insider executive who will plead guilty and spill the beans about Enron's murky finances. There has already been a far-reaching investigation into the scandal by a number of congressional committees. * Three key players appeared involuntarily and then refused to speak in order to avoid incriminating themselves: 1- Andrew Fastow: Former chief financial officer, sacked as the scandal unfolded, and alleged author of the deceptive accounting practices. 2- Kenneth Lay: Enron's former chief executive and chairman since 1986 refused to testify at the last moment after saying he had been pre-judged. 3- David Duncan: Enron's chief auditor at Andersen who shredded key documents relating to the case. It was his job to check Enron's accounts. * Three senior executives did testify: 1- Joseph Berardino: Andersen's chief executive vigorously defended his firm's role in the affair....
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...banks are managed according to Sharia law. The main difference between Western banking and Islamic banking is the Quran prohibits the collection of interest in all monetary transactions, charging fees (and donations) for services provided in lieu of charging interest on loaned capital. Islamic banks are also governed by a Sharia Advisory Board, which is comprised of Islamic scholars and clerics who are responsible to ensure all of the bank's activities are in strict compliance with Sharia (Islamic) law. Those in favor of Islamic banking believe the Islamic banking system is superior to the capitalistic model of the West, because it is structured around a "strict code of ethics" (based on the Quran) and is prohibited from "exploitative practices" (including the charging of interest). According to Islamic banking proponents, this allows banking to be an integral part of a moral society (governed by the Quran). In contrast, they believe capitalism is solely focused on money (profit) and this incites greed and the exploitation of others, which leads to the social problems in the West, including the division of classes and unequal distribution of wealth. They also believe the Islamic banking model would rid the West of these social problems and bring about a more equitable and fair society. Many of the scholars and clerics who sit on these Islamic Banking Advisory Boards come from the more radical elements of Islam, and the educational centers that promote and encourage violence against...
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...1. What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen (AA) contributed in several ways to the disaster of Enron. AA collected fees for consulting advice and approved as auditors and consultants the structure of Special Purpose Entities (SPE). The SPE’s were used to hide Enron’s true financial situation. False profits were generated, losses were hid, and financing was kept off of Enron’s consolidated financial statements. The auditors did not enforce Enron to institute internal controls and failed to abide by Generally Accepted Accounting Principles (GAAP). AA did not warn Enron’s audit committee that there was a significant conflict of interest involving Andrew Fastow, Enron’s CFO and his helpers. Obstruction of justice was committed by shredding Enron’s audit papers leading to imprisonment charges. Transactions conducted between Enron’s, and the SPEs were not in the best interest of the shareholders, for example profits and cash flow were swayed and clearly inflated. This misled investors. The above are just to name a few contributions to Enron’s downfall. 3. What was the prime motivation behind the decisions of Arthur Andersen’s audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? Cite examples that reveal this motivation The prime motivation behind the decisions of Arthur Andersen’s audit was profit and greed and was not in the best interest of the public. The leaders of...
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...Unethical Research Practices Unethical research is commonly found within pharmaceutical companies. In a hurry to get new drugs to market, companies will often cut corners during the research process. Pharmaceutical companies will spend millions of dollars on drug research, but very little on unethical drug promotion (Parmar, Jalees, 2004). The purpose of this paper is to inform the reader of how unethical research practices can lead to death from both past and present case studies. Present Rizwan Rahim Ahmed and Dr. Ahmed Saeed conducted a case study concerning ethical and unethical pharmaceutical marketing practices in Karachi City, Pakistan (Ahmed, Saeed, 2012). The results were very alarming to the world. The study indicated that doctors, hospital administrators, and pharmacies were receiving kickbacks from the pharmaceutical industry for prescribing their drugs to patients. The case study concluded that participants had different levels of blame. For example, the study shows that four out of five doctors were receiving money from these companies. Still today the government of Pakistan turns a blind eye to this type of unethical behavior. Research found that doctors were prescribing unnecessary drugs to patients regardless of the medical outcome. The more medicine they prescribe, the more money they would receive from the pharmaceutical companies. The study concluded that this type of unethical practice is common throughout the world but severe with regard to developing...
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...Unethical Business Practices From 1999 to 2006, John Mackey used the internet to post inaccurate information concerning one of his competitors. He was attempting to drive down stock prices, buy out his competitor thereby eliminating competition, and finally create a monopoly. Normally making business profit is not a bad thing. One technique is for a business to cut prices, thereby becoming more competitive -- a plus for the consumer. Another is when a company or CEO uses devious tactics or unethical means to influence the market for corporate or personal profits. According to a statement made by Brian Schactam from CNBC, “John Mackey used a pseudonym on financial message boards to bash rival Wild Oats as a bad business not worth its stock price.” Those inaccurate postings concerning Wild Oats caused their stock prices to fall and deterred other investors from buying the stock. That tactic is highly unethical. An article on Daily Finance blogging dated July 11, 2007 cites the following statements and sources made concerning Whole Food CEO: “John Mackey often criticized Perry Odak, Wild Oats' former CEO, who resigned last year. "While Odak was trying to figure out the business and conducting expensive 'research studies,' to help him figure things out, Whole Foods was signing and opening large stores in OATS territories," Rahodeb wrote in 2005. "Odak drove off most of the long-term OATS natural foods managers" and brought in executives who "didn't know too much...
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...The Practice of Unethical Studies Ricardo Diaz RES 351 William Hanson The Practice of Unethical Studies Unethical studies are habits that are happening all over the globe. Different parts and countries are all subject to this, including the United States and UK ("Gsk Fined Over Vaccine Trials; 14 Babies Reported Dead", 2014). The problem is that people are becoming selfish in trying to benefit their own needs at the expense of humanity. I have come across an article that really disturbed me. This article focused on a company in Argentina. Glaxo Smith Kline Argentina Laboratories Company was fined 400,000 pesos for irregularities during lab vaccine trials conducted between 2007 and 2008 that allegedly killed 14 babies ("Gsk Fined Over Vaccine Trials; 14 Babies Reported Dead", 2014). In a nut shell, what was going on was, from 2007, 15,000 children under the age of one, from Mendoza, San Juan, and Santiago del Estero provinces were recurred from poor families to attend public hospital for research. As a result of these research protocols, a total of seven babies died in Santiago del Estero; five in Mendoza; and two in San Juan. A pediatrician by the name of Ana Marchese reported to the Argentine Federation of Health Professionals, that as her work at EvaPeron, a hospital in Santiago Del Estro, the company GSK set a protocol at the resident to recruit as many doctors as possible for the company’s trials ("Gsk Fined Over Vaccine Trials; 14 Babies Reported Dead", 2014)...
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...Unethical Business Practices Charles Graham RES351 March 24, 2014 William Greer According to the Department of Justice (GlaxoSmithKline to Plead Guilty and Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data, 2012), in 2012 pharmaceutical giant GlaxoSmithKline, LLC (GSK) plead guilty to fraud allegations and failure to report safety data, and agreed to pay $3 billion to settle civil and criminal liabilities. GSK was heavily promoting well known drugs for uses other than what they were intended, and approved for by the FDA. These promotions for non-intended uses were being made through back channels, such as directly to physicians through sales representatives, speakers at sponsored events, as well as advertising in medical journals. GSK had been circumventing the approval process to increase sales of drugs such as Paxil, and Wellbutrin, both anti-depressants. The company had neglected to provide information to the FDA regarding specific findings in research done after the drugs had gone to market. In one medical journal, GSK had published a misleading article that was contrary to actual findings. The misleading claims of GSK to healthcare providers regarding the effectiveness of specific drugs have had far reaching affects, of which cannot be immediately determined. Several of the medications are well known and branded for anti-depressants, and diabetes. According to the US Department of Justice release, GSK had made unsubstantiated claims that...
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...Unethical Business Practice of Walmart Wal-Mart is a multinational corporation that runs chains of big retail stores and has its roots in America, where its first store opened in 1962 by Sam Walton. Fortune Global 500 2012 lists Wal-Mart as the third largest public corporation in the world. It is also the World’s leading private employer giving jobs to over two million people. Wal-Mart is the world’s largest retailer. According to Frank (2006), Wal-Mart’s founder Sam Walton is “freakishly cheap. Cost-cutting was an obsession in the Wal-Mart culture, on business trips, everyone, including the boss, flew coach, and shared hotel rooms.” Sam Walton’s quest to provide low cost goods to consumers came naturally to him (Frank, 2006). Sam Walton preferred to hire as few people as possible and disliked paying them more than minimum wage. He did this so he could keep his costs as low as possible and thus be able to sell goods to his customers at low prices. His employees accepted his terms and conditions. Walton lived a very modest life himself and always kept in touch with them. He termed them as his associates (Frank, 2006). Following his death in 1992, the company’s reputation has been on a continual downslide due to ethical issues raised on its operations. According to Brewer (2004), the business ethics of Wal-Mart were questioned following allegations that its operations limit the ability of local businesses to survive. Frank (2006) notes that, it was not...
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...programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. What Is the Difference between a Policy and a Strategy? Policy is the spheres or scope within which decisions are taken by the subordinates in a company or organisation. Strategy is an action that managers and directors take to achieve one or more of the company's goals. The difference between strategy and policy is that policy is a set of guiding rules intended to influence decisions and actions that reflect agreed practice in terms of power while strategy is a high level of approach to an issue that is designed to deliver change by implementing policies. The major difference between Policy and strategy is that Policy refers to a guide to the thinking and action of those who make decisions while strategy is more of the direction in which human and physical resources will be deployed and applied with the aim of maximizing the chance of achieving desired objectives especially in the face of difficulties. VISION (examples) BRITISH AIRWAYS: To have a significant presence in the world greatestgeographic markets, generating an added value higher than the average in each and all of the segments in...
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...Unethical Practices and Behavior in Accounting The Sarbanes-Oxley Act of 2002 (SOX) was created to prevent fraudulent financial activities, and to provide investors with more accurate financial resources on corporations. Under SOX, companies are held accountable if they fail to maintain the requirements that were set forth in the act. The act requires companies to maintain satisfactory internal control measures, provide responsible financial reports, disclose periodic reports, and establish rules for annual reporting. (Hazels, 2010) These requirements are all part of the Generally Accepted Accounting Principles (GAAP). Corporations and accounting firms should have already been practicing these principles to uphold ethical behavior. However, the governing bodies charged with monitoring of corporate finances as well as their practices were outdated and that necessitated the reforms outlined in the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act’s Effect on Financial Statements The Sarbanes-Oxley Act of 2002 has several sections that effect financial statements, reporting of finances, and other requirements that are placed on organizations. “Section 302 gives corporate responsibility for financial reports. This Section requires that the "principal executive officer or officers and the principal financial officer or officers, or persons performing similar functions, certify in each annual or quarterly report filed or submitted" that the signing officer reviewed the report...
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...Unethical Practices of Arthur Andersen 1.) I think that Arthur Andersen contributed a lot to the Enron Disaster. I think that it all started when AA became its own company. Because of this, the two companies became rivals. AA’s main focus was on revenues. The company did not care how things were done as long as it put money in their pockets. Also, from what I understand, the company made the auditors feel that if they were to say anything that would make the company lose a client, then the auditor would lose their job. Auditors are there to make sure that things are being run ethically. The risk of getting in trouble by their employer blurred the line between what is right and what is wrong. Another thing that I feel like was a huge contributing factor in the Enron disaster was the approval of Special Purpose Entities that were used to generate false information. These entries were used to cover the truth of what was going on in the company. This is extremely unethical. It sounds to me like the integrity of the company went downhill after the split. 2.) I feel like most of the decisions that were made by Arthur Anderson were faulty. They were negligent in almost every decision they made. One of the biggest things was the special purpose entries which were used to cover the truth of what was going on in the company. Lying to make a company look better is extremely unethical. An investor might look into the company and want to invest because of great profits and really the company...
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...Nike Inc. Nike’s Unethical Business Practices Nike’s Unethical Business Practices Love those Nike shoes your wearing? Have you ever thought how they were made, who made them, and at what price they were made at? I bet you probably don’t. I bet that you see those Nike shoes at the store, and think to yourself, “oh I like those shoes, I have to have them,” and then buy them. What you don’t know is that those pair of shoes you just bought were probably made in a third world factory by employees who are probably working in harsh working conditions. These factories are not owned and operated by Nike, but contracted by Nike. Nike chooses to locate the majority of their production in such countries because of the abundance of cheap labor. Nike contracts factories around the world in effort to get the best product for the cheapest price made, without concern for contracted factory employee. Nike has not been concerned about what goes on in these factories only that the product is made, because Nike is not in the business for Human Rights, they’re in the business of athletic shoes sales. The Ethical Dilemma Nike has been accused with human rights violations. The charges that were made against Nike include the following: the use of child labor in factories, unsafe working conditions including exposure to toxic chemicals and the use of machinery without the proper safety precautions, pay below minimum wage and forced overtime hours. The contracted factories Nike uses to produce...
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...UNETHICAL BUSINESS PRACTICES OF WALLMART AND NIKE INTRODUCTION Wal-Mart Stores, Inc., branded as Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Walmart. It is also one of the world’s most valuable companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. In the late 1980s and early 1990s the company rose from a regional to national giant. By 1988, Wal-Mart was the most profitable retailer in the US and by October 1989 it had become the largest in terms of revenue. Geographically limited to the South and Lower Midwest up to the mid 1980s,...
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...The unethical practice that I have decided to write about is one that was done by Wells Fargo Bank. This company was caught setting unrealistic goals for their employees, and having their employees use unlawful means in order to meet those sales goals. A law suit has been filed by a lawyer from Los Angles—Mike Feuer. Some of the practices that were allegedly going on in order for the bank to meet its sales goals were bank employees opening accounts of customers without the knowledge of customers, giving illegal credit cards, as well as credit lines. Once the bank was caught and the customers complained, they still would only give them partial credit back to them for the false fees that had been imposed on them. The bank also would fake customer...
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