The purpose of this report is to explore three major corporate scandals with regard to their irresponsible ethical behaviour and the lessons that can be learned from each. The three companies examined in this report include Tyco International Ltd, HealthSouth Corporation and Nimble Pty Ltd. Results of this report show that corporate scandals occur periodically and can have an effect on other companies with the first scandal occurring in 2002 by Tyco and then followed by HealthSouth in 2003 and by Nimble in 2016. This report illustrates the need for ethical education and the major role ethics plays in society. Overall this report explores and compares the flaws in each scandal, which have occurred due to a lack of ethical behaviour.
Tyco International …show more content…
Tyco also is said to have artificially inflated stock and benefitted abundantly (U.S. Securities and Exchange Commission 2002). Another ethical issue includes Tyco’s auditing firm, PricewaterhouseCoopers, who failed to recognise the corrupt accounting, which led to continuous unethical behaviour, as they grew confident nobody could stop them. Top executives’ depletion of Tyco’s funds not only is illegal as it is stealing but also is considered corruption and manipulation of loopholes. The company had programs that enabled employee’s access to loans for housing and other reasons, which however led to the unethical misuse (Zona, Minoja & Coda 2013).
Tyco and Enron can be seen as similar as both companies’ financial records did not show an accurate representation and misled investors. High-level executives perpetrated both of these events and occurred around a similar time, which illustrates ethics substantial correlation to culture and norms (Zona, Minoja & Coda 2013). Differences occurred in the aftermath where Tyco sought to fire those responsible and distances themselves from the event whilst Enron’s entire company was corrupted and did not survive. (Brooks & Dunns …show more content…
Scrushy met regularly with HealthSouth’s executive and told them to artificially inflate its earnings to meet or exceed Wall Street analysts’ expectations and maintain the market price of its stock. SEC found out that each quarter, the senior officers would present Mr. Scrushy the actual but as yet unreported earnings for the quarter as compared to Wall Street’s expected earnings. If the actual result not meet Wall Street’s expectations, Mr. Scrushy would tell the management to “fix it” by manipulate the earning to make up the shortfall in the ‘family’ meetings. The attendees were known as the ‘family’, who is mainly HealthSouth’s senior accounting personnel that responsible to discuss what false accounting entries could be made and recorded to meet the goals (Henselmann & Hormann
Tyco International …show more content…
Tyco also is said to have artificially inflated stock and benefitted abundantly (U.S. Securities and Exchange Commission 2002). Another ethical issue includes Tyco’s auditing firm, PricewaterhouseCoopers, who failed to recognise the corrupt accounting, which led to continuous unethical behaviour, as they grew confident nobody could stop them. Top executives’ depletion of Tyco’s funds not only is illegal as it is stealing but also is considered corruption and manipulation of loopholes. The company had programs that enabled employee’s access to loans for housing and other reasons, which however led to the unethical misuse (Zona, Minoja & Coda 2013).
Tyco and Enron can be seen as similar as both companies’ financial records did not show an accurate representation and misled investors. High-level executives perpetrated both of these events and occurred around a similar time, which illustrates ethics substantial correlation to culture and norms (Zona, Minoja & Coda 2013). Differences occurred in the aftermath where Tyco sought to fire those responsible and distances themselves from the event whilst Enron’s entire company was corrupted and did not survive. (Brooks & Dunns …show more content…
Scrushy met regularly with HealthSouth’s executive and told them to artificially inflate its earnings to meet or exceed Wall Street analysts’ expectations and maintain the market price of its stock. SEC found out that each quarter, the senior officers would present Mr. Scrushy the actual but as yet unreported earnings for the quarter as compared to Wall Street’s expected earnings. If the actual result not meet Wall Street’s expectations, Mr. Scrushy would tell the management to “fix it” by manipulate the earning to make up the shortfall in the ‘family’ meetings. The attendees were known as the ‘family’, who is mainly HealthSouth’s senior accounting personnel that responsible to discuss what false accounting entries could be made and recorded to meet the goals (Henselmann & Hormann