Tamely Velazquez “What distinguishes the majority of men from the few is their inability to act according to their beliefs. “-John Stuart Mill. Greed is the motivation behind every major scandal in corporate America. Living a lavish lifestyle also plays a key role when an individual decides to lie, cheat, and steal in order to take what others have earned.
The Tycoon International scandal is a great example of which unethical counting was practiced. Former Tycoon CEO Dennis Kowalski was given a nineteen million dollar interest free loan and Tycoon paid the income tax on the loan. This ultimately lead to his downfall. Overall, Kowalski used over $75 million of Tycoon funds. None of these expenditures was publicly revealed to the company’s shareholders. Just before Kowalski resigned he spent another one million of New York state sales taxes on art purchases.
Because the Serbians-Solely Act is in place, pop management must now individually certify the accuracy of financial information. In addition, penalties for fraudulent financial activity are much more severe. Also, Serbians-Solely act increased the independence of the outside auditors who review the accuracy of corporate financial statements, and increased the oversight role of boards of directors. If Serbians-Solely had been in place Tycoon would still be one of the leading producers of medical devices in the United States.
Greed will cause an individual to gamble with shareholders money but it cannot gamble with the Serbians-Solely act. Unethical accounting was and is amongst a number of large and small companies throughout America. Because of the Serbians-Solely Act, the era of low standards and false profits are over. References Skimmed, P. D. , Wesleyan, J. J. , ; Skies, D. E. (2010). Financial accounting: Tools for business decision making (5th De). Hoboken, NJ: John Wiley ; Sons.