Hans Christian Andersen

Introduction The key tenant of choosing a specific firm for analysis, is one having the history of outsourcing their Information Technology (IT), to a third party, only to regret the decision, and return, or back source, the IT service. An excellent example being the current largest bank in the United States; JP Morgan Chase. In 2004 JP Morgan Chase cancelled the remainder of a seven year, $5 billion IT contract with IBM. When the outsourcing deal was done in 2001, it was heralded as the…

Hizmete Özel / Confidential Hizmete Özel / Confidential MGMT 512: Corporate Governance Sultan Orman: 0055134 Corporate Failure: Toshiba Accounting Scandal (2015) Summary of the Case: Everything began with the results of an independent report created by a committee of people consisting of independent accountants and lawyers in July 2015. The CEO of one of the leading companies in electronics and technology sector, Toshiba from Japan, announced that he is resigning of his…

Prudential The time when the protagonist Arthur Ryan was brought in as CEO, Prudential was charged with the largest investor fraud in US history. Prudential had defrauded investors of close to $8 billion and eventually had to shell out $371 million as settlements and fines. The most common solution to overcome the economic condition is layoffs. The critical time in highly competitive market leads Arthur Ryan to downsizing environment (p.1). Management decision in downsizing creates gap between…

There’s no known cure for greed. That said, the fall of Enron was inevitable from its inception, for whichever way the head goes, the body follows and with Ken Lay as the head, one could expect nothing less. Can a rotten tree produce good fruit? My initial response to the movie, “The Smartest Guys in the Room”, was to discuss Lay and Skilling. But a more careful consideration of the matter, I had to admit that they really weren’t the problem, even though they were the deed doers. None of…

Dallas Gold & Silver Exchange, a jewelry company, created and filed with the Commission materially inaccurate financial statements since 2009. I. John Benson, the Chief Financial Officer of DGSE, was found to manipulate the amounts of inventory for 2009 and 2010 by inflating millions of dollars (Jacobson, 2012). He exploited the inappropriate controls of DGSE and made some fraudulent accounting entries; He concealed them with false inventory details and management representation letter. Mr.…

HealthSouth & Fraud Risk Factors HealthSouth was faced with a number of incentives and pressures that contributed to its fraudulent actions. For instance, the doubling of pretax earnings in 2000 although sales only grew about 3%, management’s commitment to meeting the Wall Street analysts’ expectations, and the significant financial interest and business dealings that the directors had with the company. The financial interest of the directors certainly increased their motivation and drives to…

Ethics and Social Responsibility Companies constantly face the struggle between ethical and unethical behaviors. The line differentiating ethical and unethical actions is not always clear. An ethical company also strives to exude social responsibility. A well-developed strategic plan will help protect a company against the pitfalls of unethical behavior and increase their level of social responsibility. In 2000, the unethical behaviors at Enron became public knowledge. A strategic plan with…

“And the research awards go to … Bennington Junior High School, Bryan Middle School, Marrs Magnet Center… ” As they list the schools, our eyes search the screen eagerly for “Westside,” until we grasp we have not won. We bow our heads in dismay, but, internally, we bubble with anticipation and hope of winning the Post President’s Award. Once all of the categorical awards conclude, the announcer continues on to the four awards for distinction and the Post President’s Award, in other terms, the…

In 1977, Crown cork and Seal Company was one of the largest companies in producing metal cans and crowns worldwide. After 20 years of going into liquidation, the Crown Company stand out to prove itself in the domestic and international metal container markets. They centered their production on tin-plated for holding beer, soft drinks, and aerosol products. Unfortunately, some legislative regulation intimidate Crown’s business. They have to do something in order to compensate their products.…

The Company AIG was a company that had risen to the top through unethical procedures and acts. The company became a big financial giant in the insurance industry and later added the subprime mortgages to its portfolio that increased its profits into the billions. The company cut corners by aggressively lobbying for laws and rulings that would go in their favor (Thorne, Ferrell, & Ferrell, 2011). They came under investigation by the SEC because they thought they were reporting profits wrong.…