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examine ethical behavior within firms in relation to financial management. Provide two (2) examples of companies...

examine ethical behavior within firms in relation to financial management. Provide two (2) examples of companies that have been guilty of ethics-based malfeasance related to financial management and determine why their comeuppance was deserved.

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ANSW ER: Ethics are principles goveming a person or organization in doing the right things the right way. in a firm the following ethics to be followed with respect to financial management they are a, they should be honest and broad minded b.They should provide accurate and timely information that discloses fairly the true status of the organization to its shareholders c, they should be responsible in the use of use and control of all types of assets and resources given to them to achieve organizational objectives d. they should share skills and knowledge relevant to the work place for better overall performance. but in the real world, not all companies are ethical with respect to financial management here we will discuss about the two companies in doing so exl. Company name - Tyco in the year 2002a. it is a blue chip security system company in new jersey use b. at that time the ceo was Dennis Kozlowski and former CFO Mark Swartz who were involved They stole 150 million S and also showed company income excess of 500 million S, they also looted money through loans which were unapproved and also through stocks which were fraud stocks or non-existent stocks. They were brought into the foray by SEC and Manhattan DA investigating committee. After getting caught, both were sentenced to jail for eight to twenty five years in prison and Tyco was also forced to pay investors up to 2.92 billion S Ex:2: year 2009, IT and BPO giant of the time sat yam an Indian company. Person involved here is Mr. Ramalinga Raju, fraudulent act done by him is he boosted revenue unethically to the tune of 1.5 billion She did it by showing false revenues; cash balance statements to the tune of 50 billion rupees. After doing the fraud, he admitted themselves by the means of letter addressed to the board of directors For falsifying records, breach of trust, and cheating, he was imprisoned for up to 3 years. And was released when the investigation team failed to press charges on him in time These two financial unethical cases and examples have shaken the whole world. Companies have realized and financial departments of many countries have made strict regulations in the law and enacted various acts so that these kind of fraudulent cases of financial management in companies are not repeated in future

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