Ethics Article Review Paper

Ethics Article Review Paper Tara Smith FIN324 semipublic Relations June 5, 2007 Ethics term review When referring to corporate America, moral philosophy is something that everyone wants scarce few expect. Within the lead decade or so, corporations such(prenominal) 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 ordinate other corporations on the straight and narrow, but in filth of these high profile cases unethical practices static occur, unfortunately MSN bills Website topiced another case in 2006. In October 2006, electric chair and CEO William McGuire stepped down from his position after an outside reduce across found that his option grants were likely backdates. (Washington Post) In a report by the firm that the friendship hire to investigate, stated that on that point were boosts in the v alue of the CEOs investment self-reliance options. The options were issued on one day but they were habituated a cost 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 ar at their lowest. Although illegal, the executive directors that receive the stock as commence of their compensation are provided with higher gains.

As a issue of this illegal activity, millions of special(a) 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 of this situatio! n, it was discovered that William McGuire was not the only executive involved, in addition to McGuire resigning, William Spears, a part of the boards also resigned and the widely distributed counsel and Secretary David Lubben announced his retirement. In reviewing this article it is eject 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 get a full essay, order it on our website: BestEssayCheap.com

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