Business Ethics Case Study: Nortel Network Corporation

Introduction Nortel Network Corporation was a huge Canadian player in telecommunication. It was a part of the telecommunication boom in the 1990's. Like many companies it had a great rise then suddenly it started to fall. There was four huge reasons for the company downfall: governance structure at the board level, executive compensation, ownership structure, and earnings management. (Collins, 2012) The company may have started with some good Samaritans but as it grew more and more the company was starting to hire unethical people. Some say it's human nature to be bad sometimes, however when it destroys you and the people around you it destroys the company. Nortel's wireless and broadband communications help the company gain 350 billion Canadian dollars, this was at the height of their success. With the success of the company, many praised the CEO John Roth. Many said he was bold and had the Midas touch. The start of the downfall happen when more investors had ownership as more analysts hailed its performance. However at this time the analysts got tired and lazy. The CEO …show more content…
I honestly think having just one of these will stop the problems. I have to say regulation of punishment should be a reminder to everyone who works in an organization. This may help their conscience and may discouraged them to do something bad. I notice from my work life when a company shows they don't care, many employees try to get over on the company and steal or take advantage of not coming in. I f a company don't enforce the rules and or don't discuss the punishments, then some may think they can get away with doing certain crimes. Many times jobs will do a background check however, that doesn't always work to keep away the unethical workers. Something sets them off to go through with a crime; rather it's seeing money or gaining