Question

Corporations Essay: Instructions

Given all the corporate scandals in recent years, there are ample real world examples of corporate wrongdoing to study. The focus of this assignment is to apply the corporate concepts from the text to the "real world." In this essay, you will research and write about a specific corporation. The essay is due Sunday of Week 7, and is worth 60 points.

1.Select a Corporation

You are required to select one of the following corporations:

Adelphia Communications

2. Research the Corporation

The purpose of this assignment is to locate firsthand information about what happened to the company you've selected (remember how researching can be enlightening given the McDonald's assignment). You may use the Internet and other research sources such as Stafford Library's online resources for this assignment. A minimum of 3 different resources are required. The use of multiple sources helps ensure that you have reliable information and a comprehensive view of the case.

Your research should focus on the potential or actual criminal and civil liability of the corporation and its officers and directors. For example, what did the officers or directors do wrong? What duties were breached? What has happened with the criminal and civil lawsuits so far? Who filed the suits and what claims were filed? Were there conflicts of interest present here? How did these activities affect the shareholders and/or the company as a whole? What did the officers and directors do that was a criminal or civil wrongdoing? What duties did the officers/directors breach? What has happened in the civil and criminal suits?

3.Write Your Essay

Once you have found relevant material write your own summary. The minimum length requirement is 10 paragraphs but most students have much more than this. Your essay should also incorporate at least 6 different key terms and phrases from this week's readings. Write them in all caps so they will stand out in your paper.

When writing, keep in mind that your research should explain and discuss concepts as though your reader knows nothing about them. Analyze and summarize your findings using your own words and also incorporating terms from the textbook readings. Excessive quoting from your sources is not desired, and will cause you to lose points.

Use MLA citation style: double spaced, Times New Roman 12 pt. font

Include a Works Cited page

Review the MLA citing resources in the Week 7 Content area.

THE CORPORATION IS ADELPHIA COMMUNICATIONS....PLEASE BE ORIGINAL.. THANK YOU :)

Answer 1

John Rigas founded Adelphia communications in 1952 .It went public in 1986 and grew in manifolds.The cable industry grew with great pace.The comapany aquired many other companies which enhanced its growth and expansion. The whole industry was growing organically .

In 2002, Adelphia communications managed to gain over 5 mn subscribers ,the value of these was in billions. Major decisons were in the hands of Rigas family , as they had voting rights despites being public. On March 27 of 2002 , it was found that Rigas family had borrowed in excess amounting to $2 billion. This findings were given by analysts' conference call.CFO Tim Rigas assured the analysts that the comapny has enough resourses to replay the loan but his answer was not satisfactory which resulted in losing the stock value of the comapny.

Following the event , Nasdaq suspended trading of the stock of ADELPHIA COMMUNICATION on May 14, 2002.The situation got worsen and On June 25, 2002 Adelphia filed for bankruptcy.John Rigas' Son-in-law Peter Venetis served as vice president of strategic planning, and head of the board of directors.The scandal arose due to unethical decisions of the board members. Since Rigas family had 77% of the voting rights, it was not much difficult for them to manupulate the data.

These officers made unethical decisions for personal benifits by misusing the position and power.The CFO breached his duties by letting the family use the borrowings for personal benifits. In 2005 . when investigation was completed , it was found that Rigas family used Adelphia for personal benifits like purchasing golf memberships, private airplanes, personal investments , movies production etc. The high level officers were involved which were from Rigas family itself.

The officers misleaded the shareholders, government by presenting the false facts about the company in terms of financial statements, basic bookkeeping entires, tax returns , apparaisals & operational data. The data was manupulated at every stage.

Court found the john Rigas guilty and sentenced 15 years to prison for the fraud he did along with his son Timothy, 49, who was sentenced to 20 years in prison. Michael Mulcahey , former Adelphia assistant treasurer was tried but was acquitted of all charges. Michael, the company’s former executive vice president for operations, the second son of Rigas, faces retrial for securities fraud and bank fraud charges against him.

This activities destroyed the whole comapany and the money of shareholders were in vain. All shareholders lost their money as the Adelphia filed bankcruptcy.The trust of shareholders of the other company was shaken as the fear arose in their mind of such future uncertainty.This scandal costed investors billions of dollars as the share market suffered.

The sandal arose due to large scale unethical behaviour .This might be due to moral disengement which allows the person to feel no remorse for unethical practises. The greed for luxury and money attributes to moral disengagement.

Rigas family could have lived a dignified life . Greed destroyed their dignity , respect in the society and the comapany which gave them luxurious life.