Ethics Article Review Paper

Ethics Article limited review Paper Tara Smith FIN324 Public Relations June 5, 2007 Ethics terminal figure review When referring to corporate America, ethics is something that everyone wants scarcely few expect. Within the become decade or so, corporations much(prenominal) as Enron, WorldCom, and Tyco have been the of importing focus in the media due to unethical practices regarding its accounting practices. ace would think that these examples put other corporations on the straight and narrow, besides in spite of these spicy profile cases unethical practices still occur, unfortunately MSN Money Website account a nonher case in 2006. In October 2006, Chairman and chief operating officer William McGuire stepped down from his position later an outside report give that his option grants were likely backdates. (Washington Post) In a report by the firm that the friendship operate to investigate, stated that there were boosts in the value of the CEOs investment trust options. The options were distinguishd on one day exactly they were habituated a price as if they were issued a prior day. The give notice of back dating of armory options is to set the date of the commonplace when the stocks are at their lowest. Although illegal, the executives that play the stock as let of their compensation are provided with higher(prenominal) gains.

As a issue of this illegal activity, millions of extra dollars goes in to the pockets of the executives. The report found that the community had failed to ensure such practices were avoided. (bizjournals.com, 2006) In light of this situation, it was discovered that William McGuire was not the only executive involved, in addition to McGuire resigning, William Spears, a position of the boards also resigned and the worldwide proponent and Secretary David Lubben announced his retirement. In reviewing this article it is clear that this impingement of ethical practices did solely restrain on Mr. McGuire. For a general counsel and a peck 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: Orderessay

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