Question

A financial scandal in American International Group, Inc. (AIG). Explain following:

1. Describe the outcomes of the situation.

2. How did it affect the company?

3. How did it affect the employees?

4. How did it affect other stakeholders?

5. How did it affect society?

6. Did something good come out of the situation?

7. Can it be prevented? How?

8 Conclusions – a Final recap of important points.

Answer 1

Company was responsible for in accounting financial scandal in February 2005, which was later decided as a fine for $1.6 Billion for the company and criminal charges for sum of its executives.

Companies that have their shares in the AIG were highly affected and some do companies even went bankrupt after the scandal. Greenberg was fired from the organisation and the organisational structure was restrain to its normal position.

Many of the company employees involved in the specific scandal faced criminal charges or evicted from the company. AIG ran a very specific insider program to ensure better operational structure of the organisation and to improve it services.

Company affected the stakeholders bhaiya use margin as most of the parts involved in scandal was unavailable for the stakeholders and they faced a huge loss. This scandle directly reduced their share prices.

P.S. - please use separate threads more than 4 questions in one go.