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Illustrate The Notion Of Corporate Ethics Put Forward By Dempsey With One Recent Example From The Corporate World.

1508 words - 6 pages

"Achieving commercial success in ways that honour ethical values and respect people, communities, and the natural environment". "Overview of Corporate Social Responsibility", (Business Ethics Awards, pg.1)According to Dempsey, corporate ethics are perspectives that assist a company instincts to look out for our own individual (organisation) welfare keeping in mind the obligation and morale of the society in which it operates and the development of ethical frameworks so that there is mutual interdependence of the individual (organisation) and the community such that organisation do not do good and be profit-motivated only for themselves but also that profits are generated by keeping a virtue on the external world.In the case of Parmalat an Italian food company controlling 50% of the Italian market in milk and milk-derivative products has filed for bankruptcy protection under new fast-track administration rules unveiled by the government. The firm, which has revealed a multi-billion euro hole in its accounts, is being dubbed as "Europe's Enron". The Parmalat affair has grown into one of Europe's biggest financial scandals discovering that papers detailing a $3.9bn euro bank account on the Cayman Islands were false. It was discovered that it's claimed liquidity of 4 billion euro did not exist, and that EU 8 million in bonds of investors' money had evaporated as well. The Italian company's accounts could have been concealing a black hole as big as 10bn euros, according to the reports. Suddenly, it was discovered that it's claimed a liquidity of 4 billion euro that did not exist, and that EU 8 million in bonds of investors' money had evaporated as well. In the article "The Story Behind Parmalat's Bankruptcy" (Claudio Celani, Jan 16 2004) the largest bond placers have been Bank of America, Citicorp, and J.P. Morgan. These banks, like their European and Italian partners, rated Parmalat bonds as sound financial paper, when they knew, or should have known, that they were worth nothing. While Bank of America has participated as a partner in some of Parmalat's acquisitions, Citicorp is alleged to have built up the fraudulent accounting system. The first class-action suit in the US on the Parmalat case, filed by the South Alaskan Miners' Pension Fund, is against its auditors, Bank of America, and Citicorp. "The Parmalat fraud has been mainly implemented in New York, with the active role of the Zini legal firm and of Citibank," said San Diego lawyer Darren Robbins, a partner in the firm Milberg Weiss Bershad Hynes & Lerach. It was believed that Citigroup, by creating instruments like the sadly famous 'Buconero,' had played a fundamental role in helping Parmalat to fake their balance sheets and hide their real financial situation. According to daily La Repubblica the whole operation was replica the money for sale came from other entities owned by Parmalat, and it served only to create "liquidity" in the books this helped Parmalat to keep issuing bonds....

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