Statement Fraud Introduction This paper will discuss the financial statement fraud committed by WorldCom by examining what led up to the fraud, who committed it and why, and the impact it caused on various stakeholders and the economy. WorldCom applied aggressive and undisclosed accounting tactics to provide financial statements that reflected a $10 billion profit for the years 2000 and 2001, rather than the actual combined loss of $73.7 billion that occurred (Romar, 2006). Opportunity, pressure
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apparent ethical behavior even though each had received educational backgrounds in which ethical business practices were taught. As L. Zingales states, “While every firm can have its bad apples, when these apples are at the top, it suggests that a company has either a corrupt culture or a defective selection process, or both.” (Zingales, Jul 16, 2012). In Madoffs case, the Ponzi scheme had been going on since the early 1990’s (Morrissey, Aug 11, 2009). Under the direction of Kenneth Lay, Enron- once
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Moreover, it generally addresses the entire scope of responsibilities and obligations that a company has to each of its stakeholders like clients, employees, shareholders, suppliers and the community. To simply define business ethics, it is a form of applied ethics where it inculcates a sense within a company’s employees on how to conduct business responsibly. Business ethics seems easy to understand but when you get to the real one, you could find yourself in a confusing situation. Since the term ethics
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Cover Sheet for Applied Psychology Postgraduate Courses Module Title: Introduction to Management Psychology Coursework Title: Essay on Authentic Leadership Word Count (excluding references and appendices): 2,200 This is to confirm that I submit this piece of assessed work in the full knowledge of the published guidelines on plagiarism and its consequences Type name: Alastair Breheny Abstract: Being a young leadership theory, the jury is
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recordkeeping, as well as finding a balance in order to provide assurance and accurate recordkeeping for the business, for the investors and anyone else involved in the business. | Introduction In the wake of the US corporate scandals, such as Enron and Lehman Brothers, the integrity of accounting standards were under review. Shareholders’ confidence in financial statements and public accounting firms was shaken, due to the fact that the United States had always used rules-based accounting standards
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and regulator communities (Farber 2005; Ferrell and Ferrell 2011). Scandals at Enron, WorldCom, Xerox, Quest, Tyco, HealthSouth, and other companies created a loss of confidence in the integrity of the American business (Carson 2003) and even caused the accounting profession in the United States to reevaluate and reestablish basic accounting procedures (Apostolon and Crumbley 2005). In response to the Enron scandal, the American Institute of Certified Public Accountants issued the following
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Journal of Business Ethics (2008) 77:431–449 DOI 10.1007/s10551-007-9358-8 Ó Springer 2007 The Dark Side of Authority: Antecedents, Mechanisms, and Outcomes of Organizational Corruption Ruth V. Aguilera Abhijeet K. Vadera ABSTRACT. Corruption poisons corporations in America and around the world, and has devastating consequences for the entire social fabric. In this article, we focus on organizational corruption, described as the abuse of authority for personal benefit, and draw on Weber’s
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The ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, environmental pollution, and the use of power are not always clear cut. From an international business perspective- for MNE- with supply chain components spread across the globe, it becomes important to establish a moral compass to guide an organization to profit its stakeholders. One important factor (albeit a challenging one) in determining that moral compass is the culture. For example-
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Leadership, Trustworthiness, and Ethical Stewardship Leadership, Trustworthiness, and Ethical Stewardship The problem to be investigated is to identify the correlation between leadership, trustworthiness, and ethical stewardship. Leadership is the epicenter for any group or organization. In order for an organization to be successful it is imperative that the employees trust the leaders. This trustworthiness will allow the leader to be identified as ethical stewards. Caldwell, Hayes, and Long
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Week Five Discussion Question 1 What components do you think are most important in a communication plan? What are the advantages of a formalized communication plan? What might happen if a consultant does not establish a communication plan with a client? In my opinion, the most important components in a communication plan consist of the measurable goals and objectives. The measurable goals are meant to express the end points towards the direct effortsof the project. The business consultant's communication
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