Cracking Down on Corporate Crime
He is one of the remarkable aspects of the before and after the financial scandals swirling development of Worldcom, Xerox, Global Crossing, Enron, Arthur Andersen, Tyco and a growing number of other companies: The fraud was in the most regulated and controlled area of business activity.
If an epidemic of corporate crime may occur in financial markets Arena, the serious is the problem of Societe Generale of crime?
Look at the checks and balances in place, that the tree comes from failures of corporate governance, according to reports has even angered U.S. President George Bush:
The disclosure requirements for professionals in financial performance are large and by far the most detailed for each element of entrepreneurial activity.
It is an industry - from accounting firms - whose role is, the verification of financial figures, Corporate Audit books and confirm the validity of the annual accounts.
There is a strong industry besides, separated by the auditors - which is the Wall Street investment - whose role is to review corporate reports, interviews Corporate management staff, analyze the market and offer investors independent assessments of business prospects.
There is a legal requirement for companies to coaching, for the interests of the powerful and an important category of people - the shareholders - and considerable number of shareholders, are increasingly organized and durchsetzungsfähig their rights (including understood by pension funds). There is no legal obligation for enterprises leaders to serve the interests of consumers or workers, say.
A table of the Securities and Exchange Commission rules on financial reporting rules, and are by force of the implementation of the Agency and the threat posed by private law disputes shareholders in case of violation .
Other aspects of business activities are not simply being such a robust monitoring and control.
Given what is now apparent Corporate flagrant disregard of the law, including in areas where most leaders are closely monitored, what should we expect, is being moved elsewhere? What’s consumer rip-off, sale of dangerous products, the vulnerability of workers, polluting the environment?
Even with the lack of enforcement of laws, reporting obligations or against-organized power of institutions, we know enough to know that the epidemic of corporate crime, fraud and abuse is at least as serious outside the financial arena, as the interior.
Related Articles
Bankruptcy's New Era
Sharon Moore says life "felt like a whirlwind" after her seven-month-old restaurant in Portland, Maine, failed in February. The 38-year-old single mother said she struggled to find work and keep up payments on a small-business loan and other debts that totaled more than $18,000. Late fees and other penalties sent her
Reality Checks business as usual
The predominant mode in Washington at the moment is that corporate reformers are under control. President Bush's Wall Street speech last week, a bomb was immediately rejected circles in Washington with proposals as too weak to ensure thorough reform. The Senate has an account of the accounting reform, which actually contains provisions
Keeping the rate of home ownership dream to life
Long touted as the American dream, home ownership is the highest ever recorded. But with rising interest rates and an increase in the number of houses bulkhead, a house may have some of the worst nightmares. Buying a house can not confuse a complex transaction - and cost a great deal
Pharmaceutical companies gifts
For a long time, medical ethics have invited doctors to their relations with the pharmaceutical industry. Some doctors, medical organizations and academic institutions in the direction of reforms, but problems remain. Now, the state and federal governments, dissatisfied with the profession's efforts towards self-regulation, are pressing for other changes. Three state
Dog saviour, in contradiction with the state on rules.
It was perhaps only a regular terminal off Interstate 195 in Saco on Saturday afternoon, but for a number of people and a pack of dogs, it was pure heaven.As regards as its new owners, seven dogs saved - in the hours are stored euthanized - léché face, feet and
An importer Worst Nightmare
Richard Kuskin was sitting in the cellar of his Annex based Union (NJ), the company importing a day in May 2006, as the phone rang. One of its distributors in New Mexico was on the road. It was an accident driving an ambulance in Chinese Kuskin tires sold by the
Year of bulls.
Two stories dominated the business headlines unpleasant sat close as the sands in 2006. In the first, was our collective nose at the window of steel and glass towers that house investment banks as a tower of the annual premium was vaulted. It is in any case, it was a record
Many readers of our applause September 4 pieces of history on diabetes.
An extreme American Many of our readers applause September 4 pieces of history on diabetes. "They have done so! Kudos to NEWSWEEK for hosting yet another complex issue and difficult health and presented in a simple and understandable," wrote one. Another said: "You have an alarm on diabetes and serious
USA suggests that the prohibition of MCI government is seeking labour
The federal government today proposed barrier MCI is gaining new government.The decision was a big shock for the new MCI, the second largest nation in the maintainers distance and the main suppliers of telecommunications services by the government for many large agencies. It automatically disqualified the company on new offerings
Gadgets dust is toxic
The dust on personal computers and other electronic gadgets may be contaminated with toxic substances, which could lead, neurological and reproductive health problems, according to a report published Thursday. Health problems are primarily based on laboratory tests on animals, no comprehensive study has been done to humans. The report, however, is