LAW 122 Chapter Notes - Chapter 3: Allen Stanford, Financial Adviser, Executive Compensation
12 Oct 2017
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Chapter 3: creating and ethical organization environment and effective corporate governance. Innovation like no other company, (7) goodness in some areas atones for evil in others. Ethical collapse occurs when there is an unreasonable and unrealistic obsession with meeting quantitative goals, at all costs. Employees are reluctant to raise issues of ethical concern because they may be ignored, treated badly, transferred or worse , (cid:862)kill the (cid:373)esse(cid:374)ger s(cid:455)(cid:374)dro(cid:373)e(cid:863) Young people selected by the ceo for their position based on inexperience, possible conflicts of interest, and unlikelihood to question the boss" decisions. Weak board of directors characterizes virtually all of the companies with major accounting frauds in the early part of the 2000s. Client groups have different information needs, both groups will receive the same information. Investment bank has a strong incentive to favor issuing firms needs and to alter the information provided to both types of clients. Diminished the efficiency of security markets, undermines the reliability of information.
