MGM101H5 Chapter Notes - Chapter 6: Corporate Social Responsibility, Nortel, Ponzi Scheme
25
MGM101H5 Full Course Notes
Verified Note
25 documents
Document Summary
Ponzi scheme: investment fraud involving the payment of purported returns to existing investors from funds contributed by new investors. Bernie madoff was able to do this by using money from new investors to reward the old. He also siphoned off significant amounts of money for himself. Even reputable financial institutions, credible hedge funds, and prominent investors were taken in by madoff. He is estimated to have scammed investors out of billion and was sentenced to 150 years in prison. Nortel networks corporation announced accounting scandal with overstated revenue. In 1999 and 2000, overstated by more than billion and million in 2000 removed. Senior managers inflated earnings to achieve management bonuses. Even the government and not-for-profit companies deal with fraud. Ethics: reflection of the moral principles or beliefs about what an individual views as right or wrong. Ethics guides each individual, but problem because assessing ethical boundaries within which an individual will operate.
