Healthsouth's Fraud Case Study

Today’s society is mostly diverse. On that account, every individual is different and contributes unique and valuable goals, beliefs, ideas, and principles, which are utilized to ethically guide an organization. Although the possibilities of conflict are many, these differences are the primary strength of an organization’s culture. Consequently, corporate culture is defined by the organization’s shared values and enforced by its leaders to sustain organizational performance (Hartman, DesJardins, & MacDonald, 2014). For this reason, it is important to ensure that the organization’s culture is managed properly, especially to procure organizational performance, efficiency, and success. Given the significance of corporate culture, one will, discuss HealthSouth’s fraud case, examine the ethical issues involved, and elaborate on their ethical program.
HealthSouth Inc. is a nationally well-known orthopedic hospital and outpatient center founded by Richard Scrushy. Despite of his uprising, he was able to publically establish his own company in 1984. In fact, through out the years, HealthSouth has achieved a distinguished reputation and reported immense …show more content…
Not to mention, it hindered the image and functions of the organization’s performance and efficiency. Furthermore, HealthSouth’s corporate scandal demonstrated that the ethical quality of the organization’s culture was faulty and needed to be significantly reformed. Especially since the greed of the CEO and various CFOs breached the trust, loyalty, integrity, and respect of its employees, partners, and clients. Regrettably, such an unethical behavior conveys the reality and severity of how it impacts and discredits the company (Lupica, 2014). Therefore, in order to restore the company’s reputation and regain consumers and shareholder’s loyalty and trust, the company will need to spend a great deal of money and