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Forget about the small fishes; even the big sharks of corporate America haven’t missed the opportunity to forego the concepts of business ethics. The latest ones
to join the bandwagon are Apple and Dell. Almost 102 US companies are under the scanner of Securities and Exchange Commission (SEC) for fiddling with stock option grant dates to give the benefit of buying shares at lower prices to their employees. These scandals may not be as large as the Enrons & the Worldcoms, but they have been instrumental in further tattering investors’ faith, for whom US Inc. is becoming synonymous with ‘Fraudster’s’ Inc.
Ever since the academic research carried out by Randall Heron and Erik Lie was published (that revealed involvement of 29.2% of US firms in options backdating from 1996- 2005; refer B&E Pecunia, August 11, 2006), it has been a tumultuous time. While companies like UnitedHealth Group, Trident Microsystems, Dell and Apollo Group are either facing investigations or have received subpoena from US Justice Department, others like Apple Computers, Electronic Arts Inc. & Brocade Communication Systems are on their toes to restate financials.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative
Forget about the small fishes; even the big sharks of corporate America haven’t missed the opportunity to forego the concepts of business ethics. The latest ones
to join the bandwagon are Apple and Dell. Almost 102 US companies are under the scanner of Securities and Exchange Commission (SEC) for fiddling with stock option grant dates to give the benefit of buying shares at lower prices to their employees. These scandals may not be as large as the Enrons & the Worldcoms, but they have been instrumental in further tattering investors’ faith, for whom US Inc. is becoming synonymous with ‘Fraudster’s’ Inc.Ever since the academic research carried out by Randall Heron and Erik Lie was published (that revealed involvement of 29.2% of US firms in options backdating from 1996- 2005; refer B&E Pecunia, August 11, 2006), it has been a tumultuous time. While companies like UnitedHealth Group, Trident Microsystems, Dell and Apollo Group are either facing investigations or have received subpoena from US Justice Department, others like Apple Computers, Electronic Arts Inc. & Brocade Communication Systems are on their toes to restate financials.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative
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