From top to bottom of society, Scandal may happen. The main reason for scandal may lack trust, corruption, bribery, fraud, bankruptcy, greed and so on. Scandals would occur in politics, media, television, journalism, sports and so on for lacking immoral activities. Ethical scandals in business, is one of them, the scandals mainly related to finance, economy, misbehavior of the head of a department and many of so. Here are the 20 biggest ethical scandals in business over the world.
Here Are The 20 Biggest Ethical Scandals In Business
1. Adelphia Communications Corp.
Adelphia Communications Corp was a famous cable television company in the United States before taking the biggest ethical scandals by bankruptcy. The supreme authority of the company, John and Timothy were sentenced to fifteen to twenty years in prison for the $2.3 billion bankruptcy business scandal. This is one of the biggest business scandals.
2. Arthur Andersen
Arthur Andersen LLP is one of the enormous accounting firms in United States history. The company provided tax, auditing as well as consultancy services to the other company and corporation. But due to bankruptcy and accounting fraud in October 2001, the company fall in endanger.
BANINTER, Banko Intercontinental was the best commercial Bank in the Dominican Republic before collapsing to political corruption and fraud. The Bank fall crisis when the vice president and secretary were charged for bank fraud and Money laundering which was about $55 billion.
Barclays Bank is one of the popular banks in the world which admitted collusion and fraud with other members of banks. The biggest ethical scandals in business are here once again – the Bank was fined $453 million and both Chairman Marcus Agius and Chief Executive Bob Diamond was designed for this business scandal which involved with LIBOR rate rigging. The Bank of England may encourage the member of the bank to state that the LIBOR at lower rates to avoid.
5. Bear Stearns Companies Inc.
Bear Stearns Companies Inc was one of the largest investment banks in the world founded in 1923. It earned $2 billion profit in 2006 and it was 13,000 employees over the world. But the famous bank was almost bankrupted before selling itself to JP Morgan.
Bre-X was a large company in Canada is known as Bre-X Minerals Ltd. The group of the company was involved in a huge gold mining scandal. In 1993, the Bre-X company announced that a lot of gold had discovered. After announcing the statement, it’s stock price reached the highest peak in 1996 on the Toronto Stock Exchange. The company is collapsed in 1997 when the gold samples were found to be a fraud.
7. Deutsche Bank Spying Scandal
Deutsche Bank is a German investment bank and financial services company in Frankfurt, Germany. The 58 countries’ operational bank was accused of involving a tax fraud deal with CO2 emission certificate. The biggest ethical scandals of the bank hit not only the German bank but also foreigner dealers in the world. Later, the German government vowed to a new privacy law for workers because of the Scandal.
8. Enron Corp.
Enron Corp. is a services company based in Huston and American energy commodities in Texas. In the last of 2001, the company disclosed an accounting fraud that is known as the Enron scandal. It’s shares reduced from $90 to $0.50 which was the biggest disaster in the financial world. The employees and investors of the company saw their savings going vanished in front of their eyes on this business scandal.
Siemens is a German conglomerate company that is the largest industrial manufacturing company in Europe. The largest company and the Greek govt. went under fire for corruption and bribery involving, the deal for the security systems in the Summer Olympic Games in Athens in 2004. It was believed that the bribes were about $100 million. Considered as one of the biggest business scandals.
10. Global Crossing Ltd.
Global Crossing Ltd. was a telecommunication company that provides computer networking that was resident in Bermuda but administrative headquarters was in New Jersy, in the United States. In 1999 the company was valued al but $47 billion but the company filed for large bankruptcy in its history. The executives of the company were accused of covering up an accounts scandal.
HealthSouth Corporation was the wide publicly healthcare company in the US including the UK, Canada, Australia, Saudi Arabia and so on. The company was accused of violation to break the Securities Exchange Act and misrepresenting the company’s financial information in 1998. And the CEO, Richard M.Scrushy was charged with the accounting fraud in March in 1003.
12. HIH Insurance
HIH Insurance was the second-largest insurance company in Australia’s history before placing itself into provisional liquidation on 15 March 2001. The company lost $5.3 billion because of misleading the company’s authority. For failure to discharge director Rodney Adler, he sentenced to four and a half years of jail. Later, Failure of him, the prime minister, John Howard announced that Royal Commission would inquire about the company’s collapse.
13. Jerome Kerviel and the Société Générale Banking Scandal
Jerome Kerviel is an employee of Société Générale (French multinational investment bank and financial service company) and a French trader who has convicted trading loss for breach of trust. He is also known as rogue trading. The worst situation came in public when his unauthorized trading lost €4.9 billion of the Bank that impacts on European markets.
14. Lance Armstrong and the Livestrong Foundation
Lance Armstrong is a Tour de France Champion as well as the founder of the Livestrong Foundation, a nonprofit organization, provide support for the cancer survivor. The famous man falls into the biggest etical scandals in cycling history. Now he is infamous for his doping, if though he has a huge good impact over the world.
15. Martha Stewart’s Mess
Martha Stewart is an American businesswoman, television personality, and writer. She made herself as a successful businesswoman through her founding Martha Stewart Living. Unfortunately, the successful woman was convicted of a charge related to ImClone Stock Trading Case in 2004. Though she was able to back, she reigned her company in2012. This is one of the most well-known ethical scandals in business.
Parmalat is an Italian dairy and food corporation that is now a global presence including Europe, North America, South America, Australia, South Africa, and China. But the corporation fell in the biggest bankruptcy crisis in 2003 which was one of the biggest ethical scandals in corporate history.
Swissair was an airline of Switzerland which was found in 1931 and fell in bankruptcy in 2002. Due to a cash shortage, Swissair pulled up all flights in October 2001. About 39,000 passengers worldwide were unable to take the flight that they booked. Within a short day after the incidents, the share of the company fell on $61 to $0.78.
18. The Bernie Madoff Ponzi Scheme
Bernie Madoff is the founder of Wall Street and stockbroker as well as a financial adviser. He was arrested and sentenced to prison for 150 years because of Securities fraud, investment trust fraud, mail fraud, wire fraud, and money laundering.
19. Tyco Ltd.
Tyco International was a two-segment business, security solution, and Fire protection. The company faced a scandal in which the top officers of the company were involved. The unethical practice of the business of its ranking officers, especially Kozlowski (CEO) was involved in the huge financial transaction that was not actually included the finance reports of the company.
20. Urban Bank
Urban Bank was one of the famous banks in the history of the Philippines. Lack of liquidity of the bank, it was fell in endanger. Anyway, not only the lack of liquidity but also the criminal charges of the officers of the bank was closed down.