Ethics Article Review Paper

Ethics Article Review Paper Tara Smith FIN324 human race Relations June 5, 2007 Ethics term review When referring to corporate America, morals is something that everyone wants scarce few expect. Within the lead decade or so, corporations such as Enron, WorldCom, and Tyco have been the of import focus in the media due to unethical practices regarding its accounting practices. oneness would think that these examples dress other corporations on the straight and narrow, but in acrimony of these high profile cases unethical practices static occur, unfortunately MSN property Website treated another case in 2006. In October 2006, death chair and CEO William McGuire stepped down from his position after an outside sketch found that his option grants were likely backdates. (Washington Post) In a report by the firm that the friendship hire to investigate, stated that in that location were boosts in the value of the CEOs investme nt charge options. The options were issued on one day but they were habituated a impairment as if they were issued a prior day. The dissolve of back dating of stock options is to set the date of the stock when the stocks atomic number 18 at their lowest. Although illegal, the decision makers that receive the stock as commence of their compensation are provided with higher gains.

As a issue of this illegal activity, millions of special dollars goes in to the pockets of the executives. The report found that the company had failed to ensure such practices were avoided. (bizjournals.com, 2006) In light o f this situation, it was discovered that Wil! liam McGuire was not the only executive involved, in addition to McGuire resigning, William Spears, a part of the boards also resigned and the general counsel and Secretary David Lubben announced his retirement. In reviewing this article it is take a crap that this violation of ethical practices did solely wait on Mr. McGuire. For a general counsel and a piece of the compensation committee to be involved this violation ends at the top...If you want to pay off a full essay, order it on our website: OrderCustomPaper.com

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