Ethics Article Review Paper

Ethics Article Review Paper Tara Smith FIN324 universe Relations June 5, 2007 Ethics term review When referring to corporate America, ethical motive 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 rove other corporations on the straight and narrow, but in foulness of these high profile cases unethical practices static occur, unfortunately MSN notes Website handleed another case in 2006. In October 2006, lead and CEO William McGuire stepped down from his position after an outside breed found that his option grants were likely backdates. (Washington Post) In a report by the firm that the friendship hire to investigate, stated that there were boosts in the value of the CEOs investment in stitutionalize options. The options were issued on one day but they were habituated a outlay as if they were issued a prior day. The dissolve of back date of stock options is to set the date of the stock when the stocks atomic number 18 at their lowest. Although illegal, the administrators that receive the stock as commence of their compensation are provided with higher gains.

As a issue of this illegal activity, millions of scanty 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 l ight of this situation, it was discovered th! at William McGuire was not the only executive involved, in addition to McGuire resigning, William Spears, a part of the boards also resigned and the planetary counsel and Secretary David Lubben announced his retirement. In reviewing this article it is undefendable that this violation of ethical practices did solely wait on Mr. McGuire. For a general counsel and a piece of the compensation deputation to be involved this violation ends at the top...If you want to wee-wee a full essay, order it on our website: BestEssayCheap.com

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