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Case study 4 law & ethics
Case study 4 law & ethics
Law enforcement ethical violation cases
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Hewlett Packard Case Study The Hewlett Packard case was a scandal that happened in 2006. The board of directors in Hewlett Packard was involved in a scandal. Hewlett Packard was using different legally questionable methods to try to spy on their directors. Over periods of time discussions from the board members were being leaked and they could not figure out why. Private investigators were hired and they found out George Keyworth was the one behind it all. One of the methods that was used to figure out who their leak was is called pretexting. Pretexting is when a person lies to the person they are talking to in order to get their information and scam them. A couple of problems that the board of directors at Hewlett Packard is that …show more content…
They should have had a lawyer that is very familiar with all of the laws in the area they were at as well. That lawyer should have been included in all meetings and decisions being made about what to do next. After discussing things with the lawyer, they then should have come to a vote on what to do next. If my employee was one of the suspects in question, I would have a meeting with him or her and discuss the allegations immediately. Then I would follow protocol and be sure to have my lawyer by me the entire time to ensure that everything I am doing is lawful and ethical. I would also be sure to put security on the computers and system that will detect and report things like this as well. The Hewlett-Packard case was a very unethical case in many ways. One of the ways is because they went behind their employees back and started investigating them without them even knowing that they were even a considered suspect. Another reason I say this is because they invaded people’s privacy. Invading people’s privacy is very immoral. Everybody deserves their right of having their own privacy. By them going behind their backs and not even discussing anything to them was
This article starts by talking about the rumor, and how it is affecting the company. After a certain point in time they could no longer keep devoting resources to the rumor so they entered a legal suit. They went to court with the first people that they thought they had enough evidence against. After that point the rumor died down but did not completely go away leaving the company to question how they could reach...
In summation of the previous stated details, further action would not be required in this situation. Retribution was delivered to all parties involved, News of the World ceased to exist; Rebekah faced legality troubles in addition to being exposed for committing adultery, and Rupert Murdoch admitted to flaws within his company. The way I would handle future situations from here on out would entail myself consulting with HR department and hiring our own private investigators to monitor our employees to make sure they are not corrupt and terminate the bad ones as time progress.
The major groups that were directly affected are investors, employees, and suppliers. Here we should make the distinction between different types of investors. There are two major types of investors: insiders and outside investors. Insiders are the investors who know the information that is not known publicly and may benefit them in some way. Outside investors are the investors who only know publicly known information. In our case, outside investors was the group that lost the most. On the other hand, insiders, notably Mickey Monus and David Shapiro, were the one that gains millions on IPO. The group who suffered was employees of Phar-Mor. After the scandal was revealed, most of the stores were closed to cover up losses. As a result, thousands of employees got fired. Another party that was damaged by the scandal was Coopers&Lybrant, the firm that did the audit for Phar-Mor, lost its reputation as a firm who does an audit with integrity. The secondary effect of the scandal was the overall mistrust among investors. They thought that if a giant retailer can forge its accounting books, why smaller companies wouldn’t do the same. As a result, investors became reluctant in investing into businesses that caused harm to the economy as a whole. The last but not least group that was affected by the scandal is Phar-Mor’s suppliers. Mickey Monus was fiercely fighting with them to make the chipset deals to cover up his losses, sometimes using inappropriate pressure and causing suppliers making unprofitable deals. In additions, Monus forced them to pay fees and sponsor his basketball League using buyer power of his company. In addition, a lot of bills for supplies were unpaid for months by Phar-Mor. Some suppliers said that they hated doing business with Phar-Mor, but had no choice since it had an access to vast amount of customers.
After news of the scandal of Enron, one of the hottest items on e-Bay was a 64-page copy of Enron’s corporate code of ethics. One seller/former employee proclaimed it had “never been opened.” In the forward Kenneth L. Lay, CEO of Enron stated, “We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected (Enron 2).” For a company with such an extensive code of ethics and a CEO who seemed to want the company to be respected for that, there are still so many unanswered questions of what exactly went wrong. I believe that simply having a solid and thorough code of ethics alone does not prevent a company from acting unethically when given the right opportunity.
Corporate executives like Kenneth Lay and Martha Stewart were taken before the court for poor ethical practices. Leaders of pharmaceutical companies have been found knowing about distribution of unsafe products. Leaders at Coke Cola were found guilty of racial discrimination and leaders of cruise ships fined for dumping waste in the ocean. News reports exposed Wall Street analysts who created phony reports, made profits, and pushing worthless stocks, left citizens questioning if they should invest their money. Leaders of the world’s largest retailer, Wal-Mart, were cited for practices of employee abuses and gender discrimination.
In the same study “quantitative and qualitative analyses are conducted of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing” found that “The choice of internal versus external channels may vary depending on the employee's level of education, training, or skills (Terry).” They found “highly skilled or educated employees likely rely on internal reporting channels, while less educated employees often select external channels (Miceli and Near, 1992, 1984) (Terry).” Also “highly educated or skilled employees often have greater knowledge of where to report wrongdoing, including possible alternative reporting channels within
SUN Microsystems Case Analysis Sun Microsystems had an extremely tough decision to make in regards to its procurement strategy. They had to decide if they were going to take on an “E-sourcing” or “dynamic bidding” auction-type strategy with making purchases from their suppliers. Taking on this type of procurement strategy would benefit Sun with cost-savings on procurements, but may jeopardize their supplier relationships and quality of inputs for Sun products. After reviewing the enclosed financial data for Sun from 1996-1999, it is apparent that some trends are consistent. Sun’s cost of goods sold has consistently been around half of their revenue for prior fiscal years, resulting in an approximate gross margin of 50%.
Sandberg, J., Solomon, D., & Blumenstein, R. (2002, June 27). Accounting Spot-Check Unearthed A Scandal in WorldCom's Books. Retrieved from The Wall Street Journal: http://online.wsj.com/article/SB102512901721030520.html
Whistle-blowers face ethical dilemmas in decision-making about reporting organizational misconducts. Manager’s disapproval of whistleblowing hinders employee’s willingness to report internal wrong doing. High rank managers are not to empathic to whistle-blowers because this
Ivan Boesky pleaded guilty to the biggest insider-trading scheme discovered by the United States Securities and Exchange Commission (SEC). He made 200 million dollars by profiting from stock-price volatility on corporate mergers. What he actually did was cheat by using illegally obtained secret information about impending mergers to buy and sell stock before mergers became public knowledge/ Although insider trading is nothing new, the SEC knows it has become a threat to the public’s confidence, and they must enforce regulations to stop criminal activity. The SEC has put pressure on managers to regulate information leaks, promising strict legal enforcement if a business fails to police misuse of privileged employee information.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
My report is on the company Hewlett – Packard (HP) which was founded in 1939. I mainly focused on the Personal Systems Group (PSG): business and consumers PCs mobile computing devices and workstations which is one of the major industries of HP. In order to succeed in the business industry a company needs to understand its customer’s needs and create wants for them. HP found out that the customer needed light weight, useful notebook PCs through its Research & Development (R&D) centre. Hence, it created a want; a New Commercial Notebook PC Compaq Evo Notebook N1015v which packs the power and performance necessary for mobility into a stylish design for only $899(US $). HP also finds out about its customer needs through online feedback forms and survey. Via that, HP was also able to understand that not everyone are able to use their products hence it has created this HP accessibility products which can be accessed by anyone including people with disabilities and age – limitations. Example of such product under the PSG industry is the Mobile Speak Pocket which was specially made for the visually impaired people. ( Refer To Exhibit 1a – 1c )
The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.
The main ethical issue with the Enron scandal is that Enron allowed legal loopholes to supersede ethical principles (Bowen & Heath, 2005). Enron used legal principles to justify what they were doing instead of acknowledging that the accounting processes they were using were unethical. Another one of the ethical issues is that Enron faced was that
In regards to business practices, incentives are common tool used in negotiations. With that being said, Intel, a technology conglomerate, gave huge incentives to its customers for using computer-chip. Many would argue that Intel was wrong, while others would say Intel business practices were fair game. Below is a detailed report, discussing Intel actions.