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Business Ethics - Essay Example
Author : clare49
Pages 6 (1506 words)
Institution Subject code Much has not been talked about or documented on how the public perceive the ethics of United States business executive, yet investors and relevant stakeholders consider integrity to be important. Organizations struggling with ethical issues have trouble attracting customers and investors…
Besides financial losses for the business, other problems such as lawsuits and market share decrease may be witnessed (Baumhart, R. 1968). Ethical Problems Worldwide Corporate ethical issues have not been confined to the United States. 80% of companies worldwide suffered business fraud in the years between 2004 and 2007. Parmalat, a dairy company in Italy filed for bankruptcy in 2003 because of fraudulent accounting issues. Founder Calisto Tanzi was found guilty of fraud in 2010 and sentenced to prison for eighteen years. The company reported earnings every year but never earned any earnings. Conrad Black, a former chairman of Hollinger International, was found guilty in the 2007 of embezzling funds of the media company’s shareholders by back-dating stock options (Baumhart, R. 1968). Millions of dollars was stolen through falsified documents. In Sweden top management of the insurance business Skandia engaged in corruption awarding themselves large bonuses in excess of $350 million, some of which were never disclosed. This action made Shareholders to be extremely unhappy with the losses and executive corruption. The prices of shares in the company dropped drastically (Helin and Sandstrom2007). ...