The Legal and Ethical Environment of Business Essay

The court-ordered and Ethical Environment of Business - Essay ExampleAdelphia, Home Store, and IM Clone systems, where CEOs and top officials in intumescent corporations have been found guilty of fraud, improper accounting, and insider trading. Most of these officials have been convicted and case imprisonment for up to 25 years and tough fines payable to the Government for the personal profits that they have made (www.marketwatch.com). A bountiful Insurance Comp any, AIG was also accused of bid rigging, fraud, and improper rigging practices and forced into making a bountiful settlement (www.corporatenarc.com). The Company was able to settle in a civil suit and paid up $1.6 million, thereby avoiding the stiffer penalties that a criminal case could have brought upon the Company. It is also paying settlement amounts to investors who have been defrauded, as well as $100 million to the SEC. Since DWI is involved in many of the industries where there has been a prevalence of such scand als, it needs to improve its regulatory practices within the organizations in order to be able to face up to the tough scrutiny of the public and Government agencies. Corporate leadership in DWIs firms, in particular, must be held accountable for any fraudulent dealings and there needs to be a periodic system of inspection and accounting introduced, in order to ensure that DWI is not rocked by any financial scandals like other corporations. In order to address these problems of fraud AIG, for example, has introduced rude(a) business practices and creating new levels of transparency in the market for the benefit of the customers. (www.corporatenarc.com). Delta Airlines that is facing difficulties in fulfilling the terms of pension plans for its pilots has dumped its pension plans and has filed for failure protection in order to cover its promised payments to its pilots.(www.money.cnn.com). Company law and the securities market have been regulated in the United States predominantly u nder the Investment Company Act of 1940 and the Securities Act of 1933.