Freddie Mac: Scandal Of 2003

1866 Words 8 Pages
Freddie Mac: Scandal of 2003
Alex Ceja
Eva Lucatero
Darrah Bonander

Reedley College

Ethics is the practice of performing at a level of right rather than wrong. Pertaining to or dealing with morals or the principles of morality. Being ethical is the highest standard for a business and is expected in every profession or career. One word that describes the term ethics would be truthfulness. Employees are expected to be truthful with the work they do. That means no falsifying records, any embezzlement, etc. If a person were to witness an action being unethical then they should immediately report it. The success of any business depends on the workers acting ethically. Workers need to realize that other employees are affected
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The unethical practices of corporations like Enron and Worldcom called for a restructuring of the financial reporting system. It was signed into existence on July 30, 2002 by President George W. Bush, which was considered by many to be reactionary and perhaps rash. The Sarbanes-Oxley Act is named after Senator Paul Sarbanes and Representative Michael Oxley, who were sponsors of the bill (Bumiller, 2002). It put into place many new guidelines that were both ethical and regulatory in …show more content…
(2003, July 22). One year later, the impact of Sarbanes-Oxley. Forbes. Retrieved from http://www.forbes.com/2003/07/22/cz_af_0722sarbanes.html Five years under the thumb. (2007, July 26). The Economist. Retrieved from http://www.economist.com/node/9545905 Glater, J D. (2003, December 11). Market place; Freddie Mac gets penalty and rebuke over scandal. The New York Times. Retrieved from http://www.nytimes.com/2003/12/11/business/market-place-freddie-mac-gets-penalty-and-rebuke-over-scandal.html?pagewanted=all
Jickling, M. (2007). Accounting and management problems at Freddie Mac. Congressional Research. Retrieved from http://congressionalresearch.com/RS21567/document.php?study=Accounting+and+Management+Problems+at+Freddie+Mac Khan, M. (2004, January). The scandal in home mortgage financing. Corporate Research Project. Retrieved from http://www.corp-research.org/e-letter/scandal-home-mortgage-financing LRN (2007). LRN Ethics Study: Employment engagement. Retrieved from

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