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Asked by marlena oxendine on Jun 09, 2024

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Companies like Enron, HealthSouth, and Xerox Corporation have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe two factors that are responsible for what went wrong in these companies.

Ethical Lapses

Failures to act in an ethical manner, often resulting in behavior that is morally or professionally wrong.

Criminal Prosecution

The legal process in which an individual is charged with a crime by the government and faces trial and judgment.

Civil Prosecution

A legal process initiated by a private individual or entity, rather than by the state, to seek remedy or damages for a breach of civil law.

  • Understand the impact of ethical lapses in financial reporting and identify factors contributing to such issues.
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Akshay SharmaJun 11, 2024
Final Answer :
The two factors are: (1) individual character and (2) company culture of greed and ethical indifference. Honesty, integrity, and fairness in the face of pressure to hide the truth are important characteristics of an ethical business person. The behavior and attitude of senior management set a firm's culture. That culture in turn flows down to lower-level managers.

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