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Date Submitted: 10/15/2014 04:30 AM
Ethics Assignment
Part one
Corporate Failures: Satyam, Lehman Brothers and HIH
There’s Always Cheddar in the Mouse Trap, Baby
Ethics and Accountability ACCT1081
Assignment 1
Class Lecturer: Victor Borg
Class Time: Wednesday 12:30-3:30
Jason Lau 3286113
Julian Chang 3378897
Fadi Sana 3414594
Contents
Introduction 3
Scandal Background Information 4
HIH Insurance 4
Satyam Computer Services 5
Lehman Brothers 5
Similarities 5
Stakeholders 6
HIH Insurance 6
Satyam Computer Services 6
Lehman Brothers 6
Major Issues 7
HIH Insurance 7
Ethical 7
Legal 7
Accounting 7
Corporate Governance 7
Satyam Computer Services 8
Ethical 8
Legal 8
Accounting 8
Corporate Governance 8
Lehman Brothers 9
Ethical 9
Legal 9
Accounting 9
Corporate Governance 9
Similarities 10
Ethical 10
Legal 10
Accounting 10
Corporate Governance 10
Relations to Enron 11
HIH Insurance 11
Satyam Computer Services 11
Lehman Brothers 12
Remedies 13
Conclusion 14
References 15
Introduction
Businesses and greed come hand in hand. This can be welcomed as it is a driving force for companies to do well bolstering the economy and creating jobs. However, unbridled self-interest may cause a company or individual in a company to take unethical and unsustainable actions. Such actions may have various repercussions on the company involved and its stakeholders. In this report we will examine HIH, Satyam and Lehman Brothers to detail how a once successful company can be devastated by unethical and unsustainable actions and how these actions were allowed to happen.
Scandal Background Information
HIH Insurance
HIH Insurance was publicly listed on the Australian stock exchange. It was Australia’s second largest insurance company prior to in collapse in 2001.
HIH collapsed due to poor management. A deficiency of 7 billion dollars was the consequence of past insurance claims with insufficient provisions. HIH’s policies had been...