Ethics Article Review Paper

Ethics Article Review Paper Tara Smith FIN324 overt 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 establish other corporations on the straight and narrow, but in spitefulness of these high profile cases unethical practices static occur, unfortunately MSN money Website writinged another case in 2006. In October 2006, chairperson and CEO William McGuire stepped down from his position after an outside announce 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 respect were boosts in the valu e of the CEOs investment self-assurance options. The options were issued on one day but they were habituated a monetary value as if they were issued a prior day. The dissolve of back geological dating of stock options is to set the date of the stock when the stocks ar at their lowest. Although illegal, the executives that receive the stock as commence of their compensation are provided with higher gains.

As a issue of this illegal activity, millions of bare dollars goes in to the pockets of the executives. The report found that the company had failed to ensure such practices were avoided. (bizjourna ls.com, 2006) In light of this situa! tion, 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 everyday counsel and Secretary David Lubben announced his retirement. In reviewing this article it is absolved 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 pop out a full essay, order it on our website: BestEssayCheap.com

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