BUSN 1101 Chapter Notes - Chapter 2: Ponzi Scheme, Corporate Social Responsibility, Adelphia Communications Corporation

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: All

Document Summary

Massive corporate corruption in companies such as worldcom, enron, adelphia, and tyco. Enron over stated company"s income over period of 4 years: stock prices fell from 90 1 dollar, thousands of employees lost their jobs /retirement funds, adelphia(cable company) and tyco: the ceo siphoned money to support own lifestyle. Madoff ran a ponzi scheme in which he got investors to give him money for the impressive of 8%-12% return a year but in reality he just took their money. It is in the best interest of the company to operate ethically: trustworthy companies keep/attract talented employees, unethical practices results in: weak customer base, high employee turnover, and investor mistrust. Ethical: to know right from wrong and to know when you"re practicing one instead of the other. Business ethics is more than just obeying laws and regulations but also it means being honest, competing fairly, and not putting your own interests over the company"s.