Business Ethics

In: Business and Management

Submitted By swiss1441
Words 3204
Pages 13

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

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



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…...

Similar Documents

Business Ethic

...1.0 Background of Nike, Inc. The company was founded on 25 January 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on 30 May 1978. The Nike, Inc is headquartered near Beaverton, Oregon, in the Portland metropolitan area. So while the Pacific Northwest is the birthplace to Nike, today Nike, Inc. operates in more than 160 countries around the globe. Through their supplier, shippers, retailers and other service providers, Nike directly or indirectly employ nearly one million people. That includes more than 44,000 Nike employees across six continents, each of whom makes their own contribution to fulfill Nike’s mission statement. The mission statement of Nike, Inc. is to carry on their legacy of inspiration and innovation thinking, whether to develop products that help every athletes in the world of every level of ability reach their potential, or create a business opportunities that set Nike apart from the competition and provide value for our shareholders. Nike, Inc. is a major publicly traded clothing, footwear, sportswear, and equipment supplier based in the United States ( 2.0 Ethical dilemmas 2.1 Low wages Once Nike, Inc. decides to become a global entity, it will often experience an increase in profitability. Nike, Inc. must overcome some foreign developing countries such as Pakistan, Indonesia, China, Taiwan, Vietnam and Thailand. Nike, Inc. can access cheap labour to...

Words: 383 - Pages: 2

Business Ethic

... |Assignment Cover Sheet for Students | |An assignment cover sheet needs to be included with each assignment. Please complete all detail clearly. | | | | |Name |Garry Jonathan | | | |Student ID |29112169 |Mobile phone |081806527970 | | | | | | | |Course code and title |MM5001 | Business Ethics & Law | | | |Course time and place |Sunday, 2 September 2012 | Jakarta |Program |MBA Jakarta | | | |Lecturer |Karl Knapp...

Words: 3096 - Pages: 13

Business Ethic

... time period A) Increase in tax rates B) Decrease in tas rates C) Increase in government transfer payments D) Decrease in government transfer payments E) Increase in government budget deficit 57. Tax cuts on business income increase aggregate demand by increasing A) business investment spending. B) consumption spending. C) government spending. D) wage rates. 58. Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion, and suppose the value of the multiplier is greater than 1. To move the economy back to potential GDP, Congress should A) lower government purchases by an amount less than $200 billion. B) lower government purchases by $200 billion. C) raise taxes by $200 billion. D) lower taxes by $200 billion. E) raise taxes by an amount more than $200 billion. 59. The appendix to Chapter 15 of the textbook converts which of the following from autonomous to a variable that depends on income? A) Government spending B) Exports C) Imports D) Tax revenues E) A) and C) F) C) and D) 60. If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will A) increase consumption by $7,500. B) increase consumption by $2,500. C) decrease consumption by $7,500. D) decrease consumption by $2,500. Short Answer (60 points) Problem 1. (30 points) The government of Ireland has a budget deficit (G > T) and is planning to reach a balanced budget for the next year. In what follows we want to investigate two...

Words: 4360 - Pages: 18

Business Ethic

...Analyze the accounts impacted and / or accounting guidelines violated and the resulting impact to the business operation. According to generally accepted accounting principles (GAAP), rises in earnings must be equaled to increases in net assets always, so that shareholders’ equity moves forward appropriately and the balance sheet balances. That was the reason that the SEC suspected why HealthSouth was able to increase its earnings while balancing its books by overstating assets and understating liabilities. This was prepared in a variety of methods, but certain accounts were operated most frequently in connection with the fraudulent reporting. If HealthSouth was continues to do so, the way to operate the business will be more difficult. Because of the previous data that the company has is unsuitable to predict the future trend of the company. Moreover, forecasting the future number will be incorrect because the data in their records are wrong. As a CFO, recommend which measures could have been taken to prevent this ethical breach and how each measure should be implemented in the future. As a CFO, there are many ways to prevent the ethical breach to not happen within the company in the future. First, the most basic but important thing is being a model of the behavior you wish to see because your staff will see how you act and they will act the same way as you do. If you say but act different from what you do, no one will focus on you in the future and ignore to...

Words: 421 - Pages: 2

Business Ethic

... individuals or groups within an organization use nonformally sanctioned power tactics to advance their own aims. The example of political tactics: blaming or attacking others, controlling information, developing a base of support for one’s ideas, image building, ingratiation, associating with the influential, forming power coalitions and developing strong allies, and creating obligations. Ethics of political tactics approaches: * Utilitarian: are the tactics used intended to advance socially beneficial or harmful goals? * Rights: do the tactics employed threat others in a way that is consistent with their moral rights? * Justice: will the tactics lead to an equitable distribution of benefits and burdens? * Caring: what impact will the tactics have on relationships within the organization * The caring organization model Focuses on cooperative nonpower relations, challenging authoritarian and competition-based assumptions about how business organizations do and should work. Characteristic of the caring model organization: * Caring is focused entirely on persons, not on profit or quality * Caring is undertaken as an end in itself not as a means to productivity * Caring is essentially personal * Caring is growth-enhancing for the cared-for. Criticizes both political and rational structure models for their overestimation of power issues (of command and conflict) and their neglect of cooperative nonpower relations essential to the......

Words: 10613 - Pages: 43

Business Ethic

...Question 1: Discuss vicarious liability and cyber-liability Vicarious liability is the principle of law that holds one party liable for the acts or inactions of another (Beyer, 2006). The concept means that a party maybe held responsible for injury or damage even when he or she was not actively involved in the incident. Under the specific type of fault required or complicity rule, vicarious liability will only be found if the employer authorized or ratified the conduct or the manner in which the particular task was performed or empowered the employee for example by making him or her a manager or recklessly hired or retained an employee that was unfit for the particular job. The existence of vicarious liability can be justified on both legal or policy grounds and organizational management grounds. There are reasons for the application of vicarious liability in legal or policy. First reason is the wrongful act of the employee are so closely related to their duties that they can be properly and fairly regarded as being within the course of employment. Second there is the business risk rationale, that it is an inevitable part of commercial life that agents and employees may act beyond their authority and instructions causing damage to a third party. Employers have calculated and accepted this risk thus incurring legal liability. Given that an employer generally benefits from the work undertaken by its employees it is not unreasonable that it also bear any losses that those...

Words: 2528 - Pages: 11

Business Ethic

...Executive Summary This report will introduce Toyota company of business ethics, in the first part, the report described the definition of business ethics, and then introduced the environmental scanning method and PEST and concretely introduces the Toyota company's ethical dilemma, how to solve this problem, from the Angle of moral evaluation, the whole situation based on different kinds of ethical theory, business ethics from the perspective of moral comprehensive understanding of the problem, and then to carry on the analysis. Making companies in the society, the government, and people’s hearts set up a better image, which is beneficial to the development of the company and have more income. Hope this report from every Angle analysis Toyota company pedal events, brake event. Let the Toyota Company remember the lesson. And effectively solve it. 1.0What is business ethic? Have a lot about what is the business ethics idea, or is simple; some people think is right or wrong. Essentially, business ethics is the pursuit of truth. Can and should be regarded as for $5 and $5 $10 is equal to the initial level, the simple truth. Therefore, the businessman must provide good quality goods and service, with reasonable price to consumers' normal supply. They must avoid addicted to like adulterate unfair trade practices, promoting misleading advertising, cheating weights and measures, such as the black market, they must give fair wages and their workers provide good working conditions...

Words: 2990 - Pages: 12

Business Ethic

...1.0 Introduction Leadership can be defined as the process in which leaders influence their followers to achieve predefined organisational goals (Yukl, 2010). A leader is a person who the subordinates look up to for advices, guidance and also to make decisions which will benefit not only the ones directly involved, but everybody else as well. A leader is an important figure in an organisation because the way the subordinates perform will be the reflection of their leader’s calibre. Therefore, to ensure employees and other staff members to behave and comply with business ethics, the leader must set a good example to them by being ethical. This can also be known as ethical leadership. Brown, Trevino & Harrison (2005) has defined ethical leadership as it being the demonstration of normatively appropriate conduct, shown through personal actions and interpersonal relationships and also the promotion of those conduct to the followers via a two-way communication, reinforcement and decision making. With that definition, it can be said that leaders play a very important role in ensuring that their subordinates behave and act ethically because they are their role model and whatever they do or say are being watched by their subordinates, whether they are aware of it or not. Subordinates, employees, they all watch how their leader acts and react both consciously and unconsciously (Huhtala, Kangas, Lamsa & Feldt, 2011), thus picking up habits and also making their leaders’ actions...

Words: 5500 - Pages: 22

Business Ethic

...MGT 3219 Business Ethics Individual Assignment First Journal Cultural and Business Ethics Comments: In the journal, I find out different countries exhibit very different opinions on the make-up of business ethics. Cultural diversity is the factor that created these differences. Culture describes people's 'way of life,' meaning the way they do things. It is the outlook, attitudes, values, goals, and practices shared by a society. However, different groups of people may have different cultures and it means business ethics is different for different countries. The journal gave an example, Japan is considered to have an entirely different set of guidelines than the United States because the cultures of these two countries come from entirely different origins. Different cultures have different rules of conduct and therein lay the issue addressed in this paper. That issue is: understanding the roots of ethics across the two cultures. Compromising a culture’s moral values can be considered extremely difficult; it is much more likely that those same values would try to be imposed upon the other party. The difficulty lies in more fundamental issues than product, price, promotion and place. With the transition from domestic-focussed operations to a true worldwide view, other factors are essential for success. One pervasive factor is culture. Culture and the expectations within cultures affect all business transactions. It is vital for marketers to understand the...

Words: 836 - Pages: 4

Sylabus for Business Ethic

...FACULTY OF ECONOMIC AND BUSINESS UNIVERSITY OF LAMPUNG  MANAGEMENT DEPARTMENT   COURSE  COURSE CODE  SCHEDULE AND CLASS  NAMA DOSEN / EMAIL  WEBSITE / POWER POINT/   TEACHING MATERIAL  BUSINESS ETHICS  EBM 612217 / 3 Credit  BILLINGUAL F103 Room / Friday 13:30 – 16:00 AM  MUDJI RACHMAT RAMELAN, S.E., MBA. /  Dina Safitri, S.E, M.I.B. Business Ethics: Concepts and Cases (7th Edition) 2012 by Manuel G.  Velasquez,  ISBN‐10: 0205017665, ISBN‐13: 978‐0205017669, Pearson  International Edition  2st (even) Semester of 2013/2014    SEMESTER       Course Description    Business ethics course is thinking or reflection about morality in business and economic activities, where  morality is defined as good aspects and / or bad aspects, commendable or reprehensible that the  human behavior is to be allowed or not allowed.    In a business context, the quest for profit is a reasonable component of each business venture, so often  ignored and passed all requirements of morality. The study of business ethics is expected to provide  impact on student behavior as actors of business in the future, so it is expected that the course will  broaden students thinking that will create an actors of economy and business that can hold on to moral  virtues.    Course goal     On completion of course the students will be able to   Knowing and expressing the concept of business ethics both generally and specifically.   Identifies the elements...

Words: 484 - Pages: 2

Business Ethic

...1. Identify the nuggets from the two-day sessions of Business Ethics class and explain how would you apply those nuggets in your work place. ANSWER: Nuggets from the lecture Ethics defined as the study of right or wrong and as broadly as the general inquiry into what is good. Ethics examines the right or wrong within the context of moral duty. Business ethics is a form of applied ethic in business activity that examines ethical principle and moral or ethical problem that may occurred on business environment. It is applies to all business activity either to the conduct of individual or entire organization. Some business may have same issue related to the business ethic such as problem of product quality, transparency of the financial statement, environmental issues, human right, workplace quality and safety issue etc. In business a company shall create a regulation and code that will regulate the daily life and how business should perform in ethical way. Those we call it Code of Business ethic and Conduct. Code of business ethic and conduct for the company is very important to set up and regulate the life of company. It’s collection of principle in term how they believe and aims to live by. It is also reflected the corporate culture and its vision and mission of the company. How the code of conduct applied in Chevron which they call it “The Chevron Way”. The Chevron code of conduct built in line with their company’s vision and mission. Integrity is one of...

Words: 1419 - Pages: 6

Ethic Situations in Business

...Veronica Knox Ethic Situations in Business September 18, 2013 Part A:  Evaluate Company Q’s current attitude toward social responsibility. Company Q’s current attitude toward social responsibility seems to be obsolete. Company Q appears to be one of a company which is implementing decision making out of frustration based on a series of events experience by the company which has impacted the company profit making ability. However, social responsibility calls for Company Q to act on the benefit of society or in this case the community at large. As a small grocery store the company depends on the business of locals in their surrounding areas in order to generate revenue. However, the fact that some of their stores are in higher crime areas this deters consumers from shopping in their stores which leads to a low profits and high expense for the inventory they carry in their stores. The passage mentioned that Company Q has had to close a couple of stores because of the higher crime rate in the areas of these locations. Therefore, it is likely that the company would not be thinking about social responsibility when asked by area food bank for donation of day old products. Frustration would be a logical justification for why Company Q would cite loss of revenue due to possible fraud and stealing by employees because the donations should actually have a positive effect by improving company, employee and community relations. If Company Q proceeded with actually...

Words: 716 - Pages: 3

Business Ethic

...Coleman Art Museum - College Essays - Liliansteve 網頁紀錄 - 更多此站結果 Read this college essay and over 1,500,000 others like it now. Don't miss your chance to earn better grades and be a better writer! ... COLEMAN ART MUSEUM The problem: The problem with Coleman Art Museum is the inability to produce any revenue from the ... Coleman Art Museum by Logan Wright on Prezi 網頁紀錄 - 更多此站結果 Coleman Art Museum Coleman Art Museum Max Gearin Ryan Lackey Aimee Noles Cody Wood Logan Wright Situation Alternatives Decision Analysis Recommendation Our recommendation at this point, is to implement Alternative #3. Remove 15 percent discount ... Coleman Art Museum - 圖片搜尋結果 Constance E. Coleman » Bahia del Espiritu Santo beached near Puerto ... ... Museum of American Art, New York; gift of Gertrude Vanderbilt Whitney coleman center accessibility the coleman center located in the kahn ... ColeMan Art Museum Artwork: Rocky Mountain Goats—B.C. by Michael Coleman Using the Balanced Scorecard to link short-term activities with long ... ColeMan Art Museum 更多 Coleman Art Museum 圖片 Coleman Art Museum - Essays - Caucella - Free College Essays, Term Paper Help, and Essay Advice - › Business and Management Read this essay on Coleman Art Museum . Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to...

Words: 637 - Pages: 3

Business Ethic

...0005-BTEC: Assignment Brief MAPS Associate’s Degree in BM/HRM / Accounting / Marketing Management) BTEC HND in Business (Management / HR / Accounting / Marketing) Assignment Brief Unit Number and Title Unit 26 – Business Ethics Qualification MAPS Associate’s Degree in BM/HRM/Accounting/Marketing Management BTEC HND in Business (Management/HR/Accounting/Marketing) Date Issued November 2, 2015 Assessor Ms. Aminath Aroosha Assignment title Date Due Report: November 30, 2015 Class Activity: November 9th &10th, 2015 ETHICAL ISSUES ( NAME OF THE COMPANY) IS FACING AND THE IMPORTANCE OF ADDRESSING THOSE ISSUES FOR THE SUCCESS OF BUSINESS The purpose of this assignment is to check student: 1 Understanding of different ethical perspectives in business 2 Understanding of business objectives from an ethical perspective 3 Understand of ethics in workplace relationships 4 Ability to assess a current ethical issue in a business. Instructions to Learners: 1. Please read the assignment brief carefully and follow the evidence criteria. 2. An electronic copy of your assessment must be fully uploaded by the deadline date and time. You may submit one single PDF or MS Office Word document or Google document. 3. The electronic copy should be named as “YourFullName_Unit26” 4. Hard copy of the assignment must be submitted latest by 2 pm, 01 December 2015. Assignment will only be accepted for marking if the hard copy and the electronic...

Words: 1652 - Pages: 7

Business Ethic

...Assignment: Pick an administrative agency of either the federal or a state government. Find where the current and proposed regulation changes for that agency are located on the Internet. (i.e., the Federal Register or the State Administrative Agency website.) is a good place to begin your research. Pick one proposed regulation change currently under consideration (if you find one that has already closed out but interests you, you can use that instead) and write the following regarding it: 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (of briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? The Georgia Department of Regulation- I goes to the casinos with friends occasional and I one of my friend owns few gas stations that have coin-operated amusement machines. This is affecting my friend due to the fact Department of Revenue is refusing to issue businesses licensed for the operation of coin-operated amusement machines in his place of business. 2. Describe the proposal/change. (10 points) The proposed regulation would authorize all gas stations the ability to apply for amusement and entertainment license while looking for more ways to gain revenue. With the state looking to bring three casinos here that would bring nearly $1 billion by 2014. Independent small business should have that opportunity as...

Words: 604 - Pages: 3