Corporate Scandals That Rocked The Foundations Of The...

We have seen in recent corporate history a litany of corporate scandals that rocked the foundations of the business world. Huge corporations whose economic outputs are larger than most of the developing countries have suddenly imploded under the weight of stock manipulation, unscrupulous accounting procedures and deliberate enculturation of business competitiveness anchored on ‘doing whatever it takes to win’. Small ethical cracks in the business foundation had gone too many and had been widely ignored by all of their stakeholders – employees, board of directors, stockholders, regulators, auditors and analysts. In the aftermath, we are faced with a realization of how fragile our economic system is and how much of it depends on values that are both difficult to measure and, in the current world, even more difficult to acquire. These are not mere economic values of profitability; but values of integrity, of truth, and of plain and simple honesty. It is in this co ntext that the three authors - Patrizia Porrini, Ph.D., Lorrin Hiris, D.P.S., and Gina Poncini, Ph.D. - wrote this book. They do not seek to expound on the voluminous literature available discussing why and how these corporate scandals happened. They seek to provide answers to how effective CEOs build an ethical culture within an organization by providing actual cases of ethical companies that had passed the test of time. This book review is divided into two parts. First is a summary of the critical conceptsShow MoreRelatedApplication Essay to The Financial Risk Management Program977 Words   |  4 Pagesshape my career goal and created a strong fascination for Financial Risk Management. These experiences taught me how risks affect organizations. I learnt how external factors such as market volatility, oil prices and internal factors such as bad business decisions increase a firm’s vulnerability to risk. 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