Business Ethics

In: Business and Management

Submitted By swiss1441
Words 3204
Pages 13
Running header: HEALTHSOUTH: THE SCRUSHY WAY 1















Business Ethics
HealthSouth: The Scrushy way—Activity 8
Melinda S. Whitman
Dr. Jennifer Scott
Northcentral University
May 19, 2013

HEALTHSOUTH: THE SCRUSHY WAY 2
Table of Contents
Introduction…………………………………………………………………………….. 3
Richard Scrushy Represented the American Dream…………………………………… 3
The Sarbanes-Oxley Act was enacted in 2002…………………………………………. 4
What caused the demise of HealthSouth?...……………………………………. 5
Characteristics of Unethical CEOs……………………………………………………… 6
Was Richard Scrushy narcissistic?.……………………………………………………. 7
Impact on Stakeholders………………………………………………………………… 8
Outcome and Fairness of Punishment…………………………………………………. 9
Conclusion……………………………………………………………………………... 10
References……………………………………………………………………………… 12




























HEALTHSOUTH: THE SCRUSHY WAY 3

Introduction

For at least 20 years, HealthSouth represented a new concept in health care. Its founder, Richard Scrushy was the embodiment of the American dream. His rise was meteoric, yet ultimately the empire he created collapsed due to fraud of his creation.
Richard Scrushy Represented the American Dream
Richard Scrushy came from humble beginnings. He was born in Selma, Alabama, dropped out of high school, married, and fathered two children. He worked in manual labor jobs, even managing a gas station, until he enrolled in the University of Alabama and completed a degree in respiratory technology (Solomon, Carrns & Terhune, 2003, March 20). After he worked as a respiratory technician for several years he began a company of…...

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