Business Ethics Adelphia Scandal - 1476 Words

As the turn of the 21st Century evolved, it appeared as if Adelphia Communications Corporation was on a direct path of success; unbeknownst to their investors and the public, they were in reality on a direct path of destruction instead. Unfortunately, Adelphia is not the first major company in the history of the United States’ business world to lose the trust of the American public, but it is certainly one of the most notable ones to do so. As the events surrounding the Adelphia scandal unfolded in full view of the public eye, a multitude of media outlets were there to broadcast the destruction and distrust to the masses leaving many wondering if the term â€Å"business ethics† was actually nothing more than just an oxymoron. Throughout this†¦show more content†¦In the first ethical problem selected, two separate books were kept by personnel in the Adelphia financial management department with the intent of deceiving external auditors; thus leading sharehold ers and the public to believe that the company was ultimately worth more than it was in actuality. In the second, the Rigas family frivolously dwindled away public money for personal selfish consumption which is clearly a violation of the public’s trust. In the weeks following the unraveling of events and divulgence of information, a number of townspeople and investors were concerned that the family was rather free with shareholder money and further believed corporate money was used to finance public generosity as previously discussed in this paper (Barlaup, Hanne, Stuart, 2009, p. 10). Defining Deontological Ethics Those practicing deontological based ethics are apt to base their decisions off of loyalty and what they believe their duty to be; therefore the choice a deontologist makes is more so based independently with only one option versus the actual consequences of the decision. Taking the aforementioned into consideration, it is quiteShow MoreRelatedEssay about Business Ethics and Kant1466 Words   |  6 Pagesdiscuss how Adelphia Communications’ leadership, particularly the Rigas family, violated the trust of the public and its investors through unethical and illegal business practices. First, a synopsis of the Adelphia scandal will be presented. Next, a brief overview of ethics and how they apply to maintaining good business and public trust will be discussed. Following the ethics overview, an outline of deontology and Kant’s Categorical Imperative will be covered. Finally, the business practices andRead MoreAdelphia Communications Scandal1563 Words   |  7 PagesAdelph ia Communications scandal Matthew Tassin Trident University Ethics 501 Introduction Adelphia Communications Company was a television cable company whose headquarters centered in Coudersport, Pennsylvania. It ranked as the fifth most prestigious cable companies in United States. John Rigas is the founder of the company. The company was highly respected until an infamous scandal ensued following claims of bankrupt in 2002, at which time its headquarters relocated to greenwood VillageRead MoreEthical Discernment: The Adelphia Scandal1655 Words   |  7 PagesEthical discernment Adelphia scandal Statistical analysis This paper relies on secondary data on a past phenomenon. It combines data from journal and other internet sources to bring out aspects of unethical behavior by Adelphias top executive. The analysis of data takes two ethical frameworks. Ethics involve an individuals moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions withinRead MoreEssay on ETH501 Adelphia Case1512 Words   |  7 Pages For this case study we are asked to draw upon deontological ethics, and discuss how Adelphia Communications’ executives violated the trust of the company’s shareholders and the trust of that of the larger public. To do this we first need to take a look at deontological ethics and how the philosophy of deontological ethics affects the choices that were made in the Adelphia Communications’ case. We will also look at the Adelphia case and examine how its executives violated the trust of the company’sRead MoreCorporate And Accounting Ethical Scandals1492 Words   |  6 Pagesthe past two decades there have been numerous corporate and accounting ethical scandals. In 2002, Adelphia Communications was among the most publicized ethical misconduct disasters. The breakdown of corporate integrity collectively cost Adelphia shareholders billions of dollars in fraudulent financial acts, marred customer/client trust, and saw senior management imprisoned (Markon Fran k, 2002). Operating a business requires the owners to follow ethical guidelines that promote trust and loyaltyRead MoreUnethical Behavior At T, Cox Cable, Directtv And Comcast1597 Words   |  7 Pageswas involved in a scandal and some criminal charges have processed due to some unethical behavior going on behind the scenes. Instantly when that happens no matter what the outcome of the trial is, that organization just lost some credibility. Unfortunately, many Americans had to face this issue†¦ John Riga and two other business partners developed Adelphia Communication Corporation in 1952 in Coudersport, PA. Shortly after, he bought out the partners and expanded the business first with his brotherRead MoreAccounting Ethics1315 Words   |  6 PagesAccounting Ethics 2 1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. The ethical breaches in recent times, Weygandt, Kimel, Kieso( 2012) researched that â€Å"financial press open full articles and documents facts about financial scandals at Enron, WorldComRead MoreAdelphi Accounting Scandal Case Study1511 Words   |  6 Pagesï » ¿Introduction Cable provider Adelphia was one of the major accounting scandals of the early 2000s that led to the creation of the Sarbanes-Oxley Act. A key provision of the Act was to create a stronger ethical climate in the auditing profession, a consequence of the apparent role that auditors played in some of the scandals. SOX mandated that auditors cannot audit the same companies for which they provide consulting services, as this link was perceived to result in audit teams being pressured toRead MoreEthical Issues Faced By The Adelphia Case1310 Words   |  6 Pagesincluded just one company, but a group effort to hide, steal, and mislead everyone for personnel gains. Everyone that deals with any organization expects the upmost ethically behavior on all levels. Background As a publicly-traded corporation, Adelphia, Inc. was one of the largest providers of cable services in the United States. After the company went public, it was learned that the company had materially misrepresented its audited financial statements by failing to disclose billions of dollarsRead MoreEssay on Adelphia1583 Words   |  7 PagesJohn Rigas who owned a movie theatre named Adelphia with the shares of his brother, Gus. After Adelphia, they purchased more new companies such as Adelphia Communications Corporation and Century Communications. The continuous success of their business causes, Adelphia Company became the sixth largest cable company in United States. They faced a lot of problems throughout the journey they run their business. Adelphia always had been as a family business because most of the shareholders and board of