Question

Research any large recent corporate scandal (past 5 years).  Ideas include: Car emissions fraud, Sec violations, Overseas bribery, Pay to play, Tax evasion, Shareholder fraud etc.

Using at least three references that must be cited, draft at least three thorough paragraphs summarizing the scandal and the outcome.

Answer 1

THE VOLKSWAGEN EMMISSIONS SCANDAL:-

This scandal is also known as "Emmissionsgate" and "diesel gate".This scandal came into light in September 2015,when the United states Environmental Protection AGENCY(EPA) has proved through its lab tests that the company's diesel cars were equipped with some devices termed as DEFEAT DEVICES,which would have softwares that enables a car to emmit nitrogen gases within the limits prescribed by EPA,thereby cheating the tests conducted.Later on EPA found that these cars emitted fourth(40) times more than what is considered to be a upper limit on emissions,that way they had a huge negative impact on environment since the company nearly sold 11 million cars of that kind.

AFTER MATH:

1.resignation of then CEO,few weeks later the scandal came into focus of media.

​​2.companys share prices fluctuating hugely.

3.lawsuits filed up against company for compensations,violations of laws in many countries.

4.many countries like Switzerland stopped sales of company's cars.

5.The company had to call back and repair nearly 8.5 million cars in Europe alone as a result the company faced it's quarter losses since 15 years.

6.company lost huge funds towards it's compensations to us government,customers and other countries.

7.Public reputation and integrity of company were hampered.

8.Between 15th and 28th september the shares of company fell more than by one third.

●THE UBER SCANDAL:

The company has faced many remarks due to harsh expansion policy,it's software to spy on customers and poach on drivers from competitors.

However,the allegations on company regarding it's BRO culture turned out to be the biggest scandal the world's most successful startup has ever faced.The allegations include some of the senior staff making sexist jokes,visiting brothels in Seoul,even sougth to discredit rape victim by obtaining her medical reports.

The scandal came into light in June of 2017,this can be regarded as a violation of workplace laws and disrespecting the concepts of corporate governance.

AFTER MATH:

1.The company had to fire it's CEO Travis Kalaniki in June 2017 along with 20 most senior officials of the company.

2.The company's share prices fell down to bottom.

◆.THE VALENT PHARMACEUTICAL SCANDAL:

This started in 2015 when Bernie Sanders and other congressman asked the company to explain that why it has raised prices of its two drugs.

Upon conducting a deep enquiry it has been found out that the company had a malicious idea of buying out it's competitors who were relatively small in scale,instead of investing into its research and development programmes.As a result to recover the purchase cost of the companies it bought the company had to increase it's prices.

This act of company can be treated as a harm done to the healthy competition environment and denying customers their right to fair prices of products.

AFTER MATH:

1.The goodwill of the company was so damaged that it had to change its name to Bausch health companies inc.

2.led to public outcry and fall in the share prices of company.

Valeant shares fell by more than two-thirds between mid-August and mid-November 2015.

3.controversy deepened when it was known that the company had control over many pharmaceutical stores,was forcing them to buy more and more orders so as to reflect more profits.

THIS WAS THE SUMMARY OF THE RECENT CORPORATE SCANDALS WHICH BLEW PEOPLES MINDS AND HAD A MAJOR IMPACT ON CORPORATE ENVIRONMENT.