What is a Business Scandal?

What is a Business Scandal?

So, what exactly is a business scandal? These are instances of unethical behavior within a company, such as an insolvent bank. Recent cases of corporate collapse involve the false or improper accounting of company finances. Notable examples include: major job losses, being nationalized, and requiring a non-market loan from the government. The impact of business scandals can be felt far beyond the financial system. In the wake of these events, the government and financial regulators step in to enforce the law.

While big business scandals can impact a company’s reputation, they should not be the sole focus of corporate ethics. In many cases, ethically-challenged behavior is more widespread and less visible than we realize. However, these incidents also reveal the core values and practices of the company. Therefore, students should examine the examples of business ethics in order to better understand the principles of business ethics. To learn more, please read on!

A good example of a business scandal involves a company that uses accounting fraud to hide bad debt from shareholders. The Enron Corporation scandal occurred in the early 2000s, after which the Arthur Andersen accounting firm was forced to shut down. Enron was a publicly traded company with a long history of accounting scandals, including the failure to disclose the source of its profits. In addition, the General Electric Company misled investors by failing to disclose where it made its money, which led to multiple accounting scandals and bankruptcy.

Author Image
Sydney Chadwick

Leave a Reply

Your email address will not be published. Required fields are marked *