Financial_Collapse

Financial Collapse Financial Collapse of Corporate America (Enron and Adelphia) In the last decade, America had one of the strongest economies in the world. Companies made billions of dollars in profit, both for the shareholders, and themselves. This tenure of economic growth was spurred on by unprecedented capacity, consumer’s hunger for new technology products, and the shear growth of the American economy. In fact, according to the U.S Labor Department, in 1998, we were at our lowest unemployment rate in nearly 20 years, it hovered at nearly 4.6%. Corporate America has built enormous businesses that have reached global and international markets. However, many pundits questioned if the economic boom would last into the 21st Century. However, these pessimists seemed sure that the market would collapse. In 1999, the world witnessed the unfolding of an economic crash. In order to rationalize this fall, we need look into the issues that probably that caused this crash: (1) Corporate Ethical Issues (2) Recent Corporate Scandals, and (3) The Economic Impact. Let us first look at the ethical practices of with regard to business. In her book, Managing Business Ethics, Linda K. Trevino discusses the issue of ethics and states, “ It is the role of every CEO to ensure corporate, practices, unethical, ethical, companies, scandals, enron, years, over, lost, fraudulent, dollars, two, stock, financial, ethics, economic, ceo, business, scheme, past, one, markets, market, issues, investors, however, fraud, credibility, statements, statement, reporting, millions, million