Scrushy became CEO of the company. By 1998 the company had experienced tremendous growth with over 1,900 centers in USA, UK and Australia. Scrushy was particularly fond of entertainment industry and he developed road shows for children and a separate communications department in HealthSouth. During his tenure as CEO Scrushy availed huge perks and benefits from the company. His corporate helicopter was primarily used for personal and family engagements.
After the company went public in 1986, Scrushy began to pressurize management to manipulate earnings in order to meet Wall Street’s expectations. His goal was to maximize stock price and his personal wealth since he owned a large stake in the company.
Every quarter, actual earnings were compared with what the market was expecting and any differences were reconciled by wrongly inflating the numbers. These adjustments were made in contractual adjustment account. Moreover, the accountants also misrepresented income statement by not recording expenses less than $5000 which was the threshold materiality level for the auditors.
The balancing entries were made in the assets account by recording fake purchases. In 2002, a former employee Michael Vines notified Ernst
Business Ethics: Utilitarianism, Rights, Justice, Caring, and Virtue theories Essay
Nursing Assignment Help Introduction The study of ethics focuses on human relationships and what is considered morally correct in human behaviors. Following ethical dilemmas and ethical lapses in business practices that became eminent in the 1970s, the concept of business ethics emerged to expound business ethical principles (Arnold et al., 2010).
As the need for mutual understanding between workers and companies intensifies, organizational discourse is currently revolving around ethical business principles that are paramount for organizational success in the modern day businesses.
Cases of ethical lapses are still on the rise, and thus developing an understanding of the issues in the context of decent business practices is becoming essential. The notion of ethical business practices has led to the formation of theories including the utilitarian theory, rights theory, justice theory, caring theory, and virtues theory, which have since been integral in the understanding of business ethics. This study analyzes these theories in the context of the case of deaths at the Massey Energy Company.
Case of death at the Massey Energy Company The Massey Energy Company owned numerous mining companies across the United States. The death incidence occurred at the Upper branch of the coalmine around Mont coal in the West Virginia district. The morning shift miners were in the process of exchanging shifts with the afternoon shift miners at around 3.00 pm on the Monday of April 2010. The mining company used certain cars to ferry miners in and out of the mine entrance during the shift reshuffling.
On this day, nine of the shift miners had just managed to come out of the cars and while walking towards the exit end of the mine, they heard a loud blast of air blow past them. Seven of their fellow miners died instantly and two of them managed to come out alive, but badly injured. A deadening explosion had cleaved through the underground coalmine and unfortunately trapped an unidentified number of shift miners inside the mine.
Reports later concluded that during the massive explosion, approximately 61 miners of the Massey Energy Company working underground had perished inside the mine.
The strong hurricane could barely allow the fellow shift miners to rescue others at the juncture of the incidence, and this aspect probably might have required rescue experts. Recue teams appeared at around 6.00 pm, after some miners managed to come on top alive. Although little equipped with oxygen tanks and masks, the tanks possessed little oxygen that limited the required air supply.
Get your 100% original paper on any topic done in as little as 3 hours Learn More The rescue teams did little to contain the situation as it forced them to enter the mine in turns. The tangled debris made it even worse for the rescue teams’ progress as it had littered the entire excavation floor. Explosive gas methane and carbon monoxide elongated the rescue time. Government reports indicated that Massey Energy Company had received several warnings, almost 50 times in the prior month alone, over violation of employee workplace safety.
Utilitarian theory and business ethics Human approach towards anticipation for maximizing of pleasure and elimination of suffering and pain brings about the fundamentals established in the realm of moral philosophies that date back to a distant past (Robertson