it recommended unnecessary repairs to customers in its automobile service business; Standard Chartered Bank was banned from trading on the Hong Kong stock market after being implicated in an improper share support scheme. The list goes on. In each case‚ employees broke through existing control mechanisms and jeopardized the franchise of the business. The cost to the companies- in damaged reputations‚ fines‚ business losses‚ missed opportunities‚ and diversion of management attention to deal with
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| Whistleblowers and their protection | | | 1.0 Introduction Fraud is one of the risks will disruption business and its profitability. Fraud is based on trickery and deceit that it is particularly difficult to detect it. The most common means of detection fraud is whistleblowing. In certain countries‚ the term whistleblower is often associated with being a traitor or spy or even a snitch‚ and whistleblowers will be discriminatory or retaliation. Thus‚ establish an effectively
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Whistleblowers: Consequences of doing the right thing By Jose Gonzalez Dr. Aaron Bazzoli Park University MG 260 29 September 2013 Outline Purpose Statement: To provide an understanding what constitutes whistleblowing in an organization‚ what are some of the laws that protect whistleblowers‚ and provide several examples of employees blowing the whistle and their consequences? I. What constitutes a whistleblowing in an organization? A. Origin and Definition B. Internal
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FAR600 CASE STUDY WORLDCOM QUESTION 1 a) Discuss the earnings management technique employed by the management of World Com. WorldCom admitted that the company had classified over $3.8 billion in payments for line costs as capital expenditures rather than current expenses. Line costs are what WorldCom pays other companies for using their communications networks; they consist principally of access fees and transport charges for messages for WorldCom customers. Reportedly‚ $3
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affected by anyone‚ even though making false accounting entries was Mr. Sullivan’s behest. Despite other factors‚ as a financial controller‚ integrity should plays as one of the most vital roles under any circumstance when making decisions. In this case‚ I think the real motivation that Myers agreed to improperly reclassify some huge expenses was that he believed the company’s problem would be straightened out eventually. Thus‚ he thought their manipulation on company’s income statement could help
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Examining a Business Failure: WorldCom WorldCom was one of several large companies that failed because of inadequate organizational leadership‚ fraud‚ conspiracy‚ falsifying documents‚ and embezzlement. WorldCom has been classified as being “one of the biggest corporate scandals in Unites States history” (Zekany‚ 2004‚ p. 101). In 2001‚ the company’s financial condition began to decline due to the slowing telecommunications industry‚ which eventually put pressure on the company’s executive
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Ayusarita Satriani 311368 – IUP BUSINESS UGM Financial Management ENRON Resources: http://en.wikipedia.org/wiki/Enron_scandal ; http://news.bbc.co.uk/2/hi/business/1780075.stm; http://finance.laws.com/enron-scandal-summary Enron is an energy company that successfully grew from nowhere to be America’s seventh largest company‚ which has 21‚000 staff in more than 40 countries in 15 years. It was one of the world’s leading electricity‚ natural gas‚ communications‚ and pulp and paper companies
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tools required to act ethically. When an individual is asked to do something that they may even suspect would be detrimental to their livelihood‚ then they have all the rights given to them to not follow through with that action. In the case of Betty Vinson of WorldCom‚ while she had the clear understanding that her actions were wrong‚ she clearly kept personal financial safety ahead of her moral and ethical standards. This eventually translated into an even more detrimental result‚ which was jail time
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WorldCom Scandal A summary of WorldCom fraud would include having to describe the greed that would eventually destroy one of the largest communications companies in the United States and world. A humble motel owner‚ Bernard Ebbers took a small long distance company in 1983 and turned it into one of the most successful businesses in the country. It was not so much the business operations that caused the company to grow but the aggressive acquisitions that made the company grow. In its day‚ CEO Bernard
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Enron and WorldCom FIN/486 December 22‚ 2014 Enron and WorldCom In 1998‚ Waste Management executives acknowledged earnings misstatements of approximately $1.7 billion. With the help of the Arthur Anderson accounting firm‚ Waste Management shareholders lost more than $6 billion dollars (CNN‚ 2001). The Waste Management corruption ushered in a series of corporate scandals into the new millennium. Enron and WorldCom were only two of many ethical and accounting violations that prompted new legislation
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