Introduction “In market-driven societies, ambitious people are expected to pursue their interests vigorously, and the line between self-interest and greed often blurs” (Sandel, 2009, p. 15). For businesses such as WorldCom, Adelphia and Sunbeam, this greed resulted in fraudulent accounting activities that left shareholders vulnerable and left the public untrusting of company financial reporting. High-profile company scandals such as these beg the question of whether ethical practices were properly
Words: 692 - Pages: 3
documents facts about financial scandals at Enron, WorldCom, HealthSouth, AIG, Adelphia Communication and Cable and more. As the scandal came to light people did not play the stock market if they believe that the stock prices were rigged.” Weygandt, Kimel, Kieso (2012) researched that; “the United States government regulators and lawmakers were very concerned that the economy would suffers if investors lost confidence in corporate accounting because of unethical financial reporting. In response, Congress
Words: 1300 - Pages: 6
The Ethicality of Excello Telecommunications Cody S. Smith ETH/376 April 22, 2013 Ding Hardin The Ethicality of Excello Telecommunications Excello Telecommunications has been a profitable company for many years, but recently the competitive landscape has become tougher. Competition from overseas manufacturers has lowered Excello’s market share and profits. For the first time it looks as is Excello will not meet earnings estimates. This information directly impacts bonuses, stock options
Words: 1376 - Pages: 6
SARBANES-OXLEY ACT – INTRODUCTION In the year 2002, the Sarbanes-Oxley Act came into force in response to corporate financial scandals that emerged due to Enron, Tyco, Global Crossing, Arthur Andersen and WorldCom to protect shareholders and the public from accounting errors and unethical business practices. It brought major changes to the regulation of financial practice and corporate governance. The Act covers issues related to creating a public company accounting oversight board, auditor
Words: 694 - Pages: 3
Although ethics in business has been an issue for academics, practitioners, and governmental regulators for decades, some believe that unethical, immoral, and/or illegal behavior is widespread in the business world. Numerous scandals in the late 1990s and early 2000s seemed to add credence to the criticism of business ethics. Corporate executives of WorldCom, a giant in the telecommunications field, admitted fraud and misrepresentation in financial statements. WorldCom's former CEO went on trial
Words: 760 - Pages: 4
legal, ethical and honest for the organization as well as its clients and vendors. The Sarbanes-Oxley (SOX) act of 2002 was created in reaction to the accounting scams of WorldCom and Enron. The act is a body of provisions that provide guidelines on the responsibilities of the higher management as well as penalties for unethical activities. The CFO of Excello, Terry Reed, wanted to post the sale of $1.2 million of equipment before the end of 2010. This type of transaction would typically be recorded
Words: 1308 - Pages: 6
Financial Statements and There Importance in Outside Interests Jay Whittington ACC 205 Instructor Angela Sneed 4/23/12 Financial statements are used in accounting to give an accurate representation of the financial health of a given business or entity. These statements and their underlying importance of accuracy cannot be overlooked. It is of the utmost importance for a business to present accurate financial statements not only to meet reporting requirements internally, but
Words: 1488 - Pages: 6
passed by the United States Congress with the intention of protecting investors from fraudulent activities experienced by business entities or corporations. The enactment of the SOX Act happened at a time when various scandals such as Tyco, Enron, and WorldCom affected the confidence of investors. Indeed, the SOX Act is about regulatory measures that are essential for purposes of protecting the welfare of investors. It is important to note that the business environment in today’s world require the investors
Words: 717 - Pages: 3
Keith Murnighan Northwestern University, Kellogg School of Management, USA Abstract Management and businesses in general are constantly facing important ethical challenges. In the current special issue, we identify the widespread emergence of unethical decision making and behavior in management as an important topic for a future research agenda. Specifically, we promote the use of a behavioral business ethics approach to better understand when management, leaders and businesses are inclined to
Words: 2428 - Pages: 10
ENRON MEMO Subject: Enron Fraud Case Enron was once the sixth largest energy company in the world. It was led by Ken Lay who was CEO for the majority of its existence; Mr. Lay grew this corporate giant until its shocking downfall in 2001. At Enron’s peak in August of 2000, it traded at $90.75 per share. January 1, 2002, Enron’s stock price plummeted to a worthless $.67 per share. Enron is considered one of America’s worst cases of accounting fraud. They are still the poster child for Accounting
Words: 1442 - Pages: 6
