Essay/ Power Point Presentation

Corporate Criminal Scandals The Sarbanes-Oxley Act of 2002 ,

.L . 107-204 a new regulator for corporate auditors , the Public Company Accounting Oversight Board , supervised by the SEC restricts accounting firms from performing other services for the companies they audit and requires new disclosures for public companies , officers and directors New regulations and liabilities for securities fraud , criminal and civil penalties for violating the securities laws and other laws , blackout periods for insider trades of pension fund shares , and protections for corporate whistleblowers Avoiding problems Set and maintain integrity goals and demonstrate top management commitment

br Monitor and audit conduct (formal and informal ) and tie performance rewards system to integrity conduct Ensure supportive climate for ethical conduct Distribute and reinforce written rules , policies , and procedures Offer Organizational Transformation (OT ) training and development programs and train employees to recognize and make ethical decisions Establish Corporate Ethics Officer /Team and designate an Ethical Compliance Manager Maintain whistle-blower ' channels and policies Abide by and enforce disciplinary policy consistently and fairly Immediately respond to misconduct follow procedures consistently and fairly Examples of Corporate Scandals I MiniScribe (1989 counting defectives drives as good inventory , shipping excess drives to customers and counting them as sales , and counting drives that were still being shipped from the factory in Singapore as stock on hand Phar-Mor (1992 accused of embezzlement , hidden losses , deceptive data and inventory Xerox (2000 recognizing a "sale " in the period a lease contract was signed , instead of recognizing revenue ratably over the entire length of the contract . by accelerating future revenues into present periods , it became increasingly difficult for management to meet investors ' expectations in future periods Enron (2001 insider trading created offshore entities , units which can be used for planning and avoidance of taxes , increasing the profitability of a business . This provided ownership and management with full freedom of currency movement , and full anonymity , that would hide losses that the company was taking AOL (2002 slow to stop billing people after their accounts have been cancell software caused significant difficulties for users cooperated with the Chinese government in implementing a system of Internet censorship in mainland China

Examples of Corporate Scandals II Bristol-Myers Squibb (2002 improper booking of sales related to "channel stuffing , or the practice of offering excess inventory to customers in to reflect higher sales numbers . anticompetitive acts over the past decade to obstruct the entry of low-price generic competition Halliburton (2002 improprieties and profiteering from the war . billing discrepancies whistleblowers were threatened ImClone Systems (2002 executives sold their stock before the announcement of a bad FDA decision Merrill Lynch (2002 discriminatory in their hiring and promotion practices WorldCom (2002 Underreporting `line costs (interconnection expenses with other telecommunication companies ) by capitalizing these costs on the balance sheet rather than properly expensing them Inflating revenues with bogus accounting entries from `corporate unallocated revenue accounts Parmalat (2003 Diversion of funds , money laundering AIG (2005 steering clients to insurers

Recommendations for DWI We cannot restrict the nationality of guest or employees with out risking discrimination...