When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds
Covering the entire world of business from heavy industry to the financial houses of Wall Street, this book shines a spotlight on 100 of the most infamous cases of misconduct and malfeasance in corporate history.

Corporations are in the business of making money. But when companies forget ethics, take operational shortcuts, or willingly endanger customers and the general public in their quest for profits, disasters of enormous magnitude can result. This book examines 100 of the worst cases of corporate greed and irresponsibility and poses the questions: Is it necessary or desirable to conduct business in this manner? Do the penalties and other punishments levied against these companies go far enough? And what is the government's responsibility for keeping corporate misdeeds in check?

Coauthored by distinguished public policy experts, When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds presents a representative sample of cases on a variety of topics, such as the financial sector, health care, environmental protection, product liability, and copyright. This broad introduction to the dark side of the corporate world focuses on events and scandals that resulted in substantial financial penalties, regulatory actions, or criminal convictions. The cases are presented in a readable and engaging format, making the book an illuminating and informative read for high school and college students as well as businesspeople, lawyers, jourbanalists, and professors who teach American politics, public law, or public policy.

1127728848
When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds
Covering the entire world of business from heavy industry to the financial houses of Wall Street, this book shines a spotlight on 100 of the most infamous cases of misconduct and malfeasance in corporate history.

Corporations are in the business of making money. But when companies forget ethics, take operational shortcuts, or willingly endanger customers and the general public in their quest for profits, disasters of enormous magnitude can result. This book examines 100 of the worst cases of corporate greed and irresponsibility and poses the questions: Is it necessary or desirable to conduct business in this manner? Do the penalties and other punishments levied against these companies go far enough? And what is the government's responsibility for keeping corporate misdeeds in check?

Coauthored by distinguished public policy experts, When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds presents a representative sample of cases on a variety of topics, such as the financial sector, health care, environmental protection, product liability, and copyright. This broad introduction to the dark side of the corporate world focuses on events and scandals that resulted in substantial financial penalties, regulatory actions, or criminal convictions. The cases are presented in a readable and engaging format, making the book an illuminating and informative read for high school and college students as well as businesspeople, lawyers, jourbanalists, and professors who teach American politics, public law, or public policy.

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When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds

When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds

When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds

When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds

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Overview

Covering the entire world of business from heavy industry to the financial houses of Wall Street, this book shines a spotlight on 100 of the most infamous cases of misconduct and malfeasance in corporate history.

Corporations are in the business of making money. But when companies forget ethics, take operational shortcuts, or willingly endanger customers and the general public in their quest for profits, disasters of enormous magnitude can result. This book examines 100 of the worst cases of corporate greed and irresponsibility and poses the questions: Is it necessary or desirable to conduct business in this manner? Do the penalties and other punishments levied against these companies go far enough? And what is the government's responsibility for keeping corporate misdeeds in check?

Coauthored by distinguished public policy experts, When Good Companies Go Bad: 100 Corporate Miscalculations and Misdeeds presents a representative sample of cases on a variety of topics, such as the financial sector, health care, environmental protection, product liability, and copyright. This broad introduction to the dark side of the corporate world focuses on events and scandals that resulted in substantial financial penalties, regulatory actions, or criminal convictions. The cases are presented in a readable and engaging format, making the book an illuminating and informative read for high school and college students as well as businesspeople, lawyers, jourbanalists, and professors who teach American politics, public law, or public policy.


Product Details

ISBN-13: 9781610694049
Publisher: Bloomsbury Academic
Publication date: 09/09/2014
Pages: 280
Product dimensions: 6.20(w) x 9.40(h) x 0.80(d)

About the Author

Donald W. Beachler is associate professor of politics at Ithaca College.

Thomas Shevory is professor of politics at Ithaca College.

Table of Contents

Introduction xi

1 Abbott Laboratories: Medicare Fraud (2003) 1

2 Abbott Laboratories: Off-Label Marketing of Depakote (2012) 3

3 Abercrombie & Fitch: Employment-Related Race Discrimination (2004) 4

4 Adelphia Communications: Securities Fraud (2005) 7

5 Ahold: Accounting Fraud Related to Wholesale Food Vending (2005) 9

6 AIG: Bid Rigging, Securities Fraud, and Tax Evasion (2006) 11

7 AIG and PNC Financial Services: Securities Fraud (2003-2004) 14

8 Alabama Power: Clean Air Act Violations (2006) 15

9 American Electric Power: Clean Air Act Violations (2006) 18

10 AOL-Time Warner: Securities Fraud (2005) 20

11 Apple: Collusion in the Pricing of e-Books (2013) 22

12 AstraZeneca: Financial Misconduct in the Marketing of Zoladex (2003) 24

13 AstraZeneca: Off-Label Marketing of Seroquel (2011-2013) 26

14 Bank of America, UBS, GE Capital, and Wells Fargo: Fraud in the Municipal Bond Business (2012) 28

15 Bank of America and Countrywide Financial: Mortgage Fraud (2011) 30

16 Bank of America and Merrill Lynch; Employment Discrimination against Women Financial Advisors (2013) 32

17 Bank of America and Merrill Lynch: Mortgage Fraud (2012) 34

18 Bayer and GlaxoSmithKline: Medicaid Fraud and Overcharging for Medication (2003) 37

19 Bernard L. Madoff Securities: Operating a Ponzi Scheme (2009) 38

20 Beverly Enterprises: Medicare Fraud (2000) 44

21 Blodget, Henry: Securities Fraud while at CIBC Oppenheimer and Merrill Lynch (2003) 44

22 Boeing: Employment-Related Gender Discrimination (2005) 46

23 Boeing: Violating Military Contract Procurement Rules (2004) 48

24 BP: Largest Oil Spill in American History (2010) 51

25 Bridgestone and Ford: Manufacturing and Design Defects Causing Tire Blowouts and Ensuing Crashes (2001-2005) 55

26 Burlington Northern: Genetic Testing in Violation of the Americans with Disabilities Act (2001) 57

27 Chiquita: Engaging in Transactions with a Specially Designated Global Terrorist Organization (2007) 60

28 ChoicePoint: Breaches in Company Security Systems Resulting in Customer Identity Theft (2005) 63

29 Citigroup: Mortgage Fraud (2011 and 2012) 65

30 Coca-Cola: Racial Discrimination Related to Employment (2001) 67

31 Computer Chip Manufacturers (Hynix, Infineon, and Samsung): Price-Fixing (2004-2010) 70

32 Countrywide Financial and Angelo Mozilo: Fraud and Insider Trading (2010) 72

33 Dell: Accounting Fraud (2010) 75

34 Dial: Workplace Sexual Harassment (2003) 76

35 Dominion Energy: Clean Air Act Violations (2003) 79

36 DuPont: Toxic Contamination Related to Chemical Production (2002-2011) 81

37 Eli Lilly: Off-Label Marketing of Zyprexa (2009) 83

38 Enron Corporation: Financial Fraud (2006) 85

39 Equifax: Failing to Correct False Information on a Credit Report (2013) 88

40 Exxon Mobil: Clean Water Act Violations Involving Oil Spills on Navajo Lands (2005) 89

41 Food Processors (ADM, Cargill, and Tate and Lyle): Price-Fixing Related to Food Additives (1998-2004) 92

42 Galleon Group and Raj Rajaratnam; Insider Trading (2011) 95

43 General Motors: Product Liability Related to the Design and Placement of Gas Tanks (1999-2003) 97

44 GlaxoSmithKline: Blocking Generic Entries to the Market (2004) 100

45 GlaxoSmithKline: Illegal Marketing and Promotion of Pharmaceutical Products (2012) 101

46 Goldman Sachs: Mortgage Securities Fraud (2010) 104

47 Halliburton: Product Liability Related to Asbestos Production and Usage (2001-2005) 106

48 Hospital Corporation of America: Medicare Fraud (2000 and 2002) 109

49 Hospital Corporation of America: Patient Neglect (2012) 111

50 HSBC: Money Laundering (2012) 113

51 IBM: Age Discrimination Resulting from Pension Plan Conversion (2004) 115

52 Invesco Funds: Mutual Fund Trading Violations (2004) 117

53 ITT: Violations of the Arms Export Control Act (2007) 119

54 Johnson & Johnson: Bribery of Foreign Health Care Providers and Administrators (2011) 121

55 JPMorgan Chase: Manipulation of Energy Markets (2013) 122

56 JPMorgan Chase: Mortgage Fraud (2013) 125

57 JPMorgan Chase: Unlawful Military Foreclosures and Evictions (2011) 127

58 JPMorgan Chase and Credit Suisse: Misleading Investors (2012) 129

59 Koch Industries: Clean Water Act Violations Related to Oil Spills (2000) 130

60 KPMG: Tax Fraud (2005) 133

61 Lippo Group: U.S. Campaign Law Violations (2001) 134

62 Lucent: Securities Fraud (2004) 137

63 Medco: Medicare Fraud (2006) 139

64 Merck: Improper Marketing of Pharmaceuticals (2007 and 2011) 141

65 Merrill Lynch: Employment Discrimination against African American Financial Advisors (2012) 144

66 Microsoft: Antitrust Violation Related to Internet Explorer Bundling (2001) 146

67 Microsoft: Antitrust Violations Related to Software Overcharges (2003-2007) 148

68 Microsoft: Patent Infringement (2011) 151

69 Morgan Stanley: Employment-Related Gender Discrimination/Sexual Harassment (2004) 153

70 Mortgage-Holding Banks, Including Aurora Bank, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo: Illegal Mortgage Foreclosures (2013) 156

71 National Century Financial Enterprises: Financial Fraud in the Health Care Sector (2009) 158

72 National Football League: Collusion in Player Head Trauma (2013) 161

73 Natural Gas Producers (Anadarko, ChevronTexaco, ConocoPhillips, Devon, Exxon, and Kerr-McGee): Fraud Related to Natural Gas Royalty Underpayments (2007-2012) 164

74 New Century Financial: Securities Fraud Related to Subprime Mortgages (2007) 166

75 Newmont Mining: Environmental Contamination (2006) 168

76 Nike: Making False Commercial Statements (2003) 171

77 Orthopedic Firms (Biomet, DePuy Orthopedics, Smith & Nephew, Stryker Corporation, and Zimmer Holdings): Illegal Kickbacks to Physicians (2007) 174

78 Petroleum Refiners (31 Companies): Oil Refinery Clean Air Act Violations (2004-2007) 176

79 Pfizer: Off-Label Marketing of Bextra (2009) 178

80 Philip Morris and R.J. Reynolds: Wholesale Practices That Encouraged Cigarette Smuggling (2004 and 2010) 180

81 Ralphs Grocery: Criminal Labor Law Violations (2006) 183

82 Royal Dutch Shell: Oil Reserve Overstatements (2002-2009) 184

83 SAC Capital: Insider Trading (2013) 187

84 Schering-Plough: Improper Marketing of Pharmaceuticals (2002 and 2006) 189

85 Serono: Health Care Fraud and Illegal Marketing (2005) 192

86 Taco Bell: Copyright Infringement and Contract Violations (2009) 193

87 Tenet Health Care Corporation: Medicare Fraud (2006) 196

88 Tenet Health Care Corporation and Redding Medical Center: Unnecessary Heart Surgeries (2004 and 2005) 198

89 UBS: Conspiracy to Defraud the U.S. Government and Tax Fraud (2009) 200

90 United Technologies: Arms Export Control Act Violations (2012) 202

91 Visa and MasterCard: Price-Fixing Related to Swipe Fees (2012) 205

92 Wall Street Analysts Including Credit Suisse, First Boston, Merrill Lynch, Salomon Smith Barney (a Division of Citigroup), Bear Stearns, UBS Warburg, Goldman Sachs, Piper Jaffray, JPMorgan Chase, Lehman Brothers, Morgan Stanley: Conflict of Interest in Investment Banking Activities (2003) 207

93 Walmart: Wage and Hour Violations (2007-2010) 209

94 Wegelin & Company: Conspiracy to Commit Tax Fraud (2012) 212

95 WellPoint: Underpayments to Physicians (2005) 214

96 Wells Fargo: Civil Rights Violations Related to Lending Practices (2009) 216

97 Williams Companies, Inc.: Stock Fraud (2006) 219

98 Wood Products Manufacturers (Boise Cascade, Georgia-Pacific, Louisiana-Pacific, Weyerhaeuser, and Willamette): Clean Air Act Violations (1993-2002) 221

99 WorldCom CEO Bernard Ebbers: Accounting Fraud (2005) 224

100 Wyeth: Product Liability Related to Fen-Phen (1997-2013) 226

Glossary 231

Bibliography 239

Index 245

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