BE (Business Ethics) / Corporate Social Responsibility (CSR)

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BE (Business Ethics) / Corporate Social Responsibility (CSR)

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Themes

BE Business Ethics, CSR Corporate Social Responsibility, ethical codes, stakeholders, Berkshire Hattaway, ethics

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Abstract

"AIG/Berkshire Hathaway. The federal trial has begun for four former executives of Berkshire Hathaway's General Re Corp. (Ronald Ferguson, chief executive officer; Elizabeth Monrad, chief financial officer; Robert Graham, a senior vice president and assistant general counsel; and Christopher Garand, a senior vice president) and Christian Milton, AIG's vice president of reinsurance. The individuals are charged with participating in a scheme to manipulate AIG's financial statements to make it appear as if the firm increased its loss reserves by about $500 million in 2000 and 2001, pacifying analysts and investors and artificially boosting the company's stock price. The trial could shed light on what Berkshire Hathaway's chairman Warren Buffet and AIG's former chairman and chief executive Maurice "Hank" Greenberg may have known about the transactions. Both have denied any knowledge or wrongdoing. Ferguson, Monrad, Milton, and Graham each face up to 230 years in prison and a fine of up to $46 million. Garand faces up to 160 years in prison and a fine of up to $29.5 million..."

Define one or more ethical codes (BE) that apply to the case
Identify stakeholder groups (CSR) relevant to the case and name their primary interest in the following table
Define decision-making process steps (reaching the decision)
Various excuses, examples, further differences, and similar items

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[...] The code of ethics of free competition, established to protect the consumer from abusive prices, for example, has been flouted on numerous occasions: - In 2005, SFR, Orange and Byougue Telecom were fined ? and ? 58 million, respectively, for setting artificially high prices to the detriment of all users. - In 2014, the Court of Appeal, sentenced L'Oreal, Colgate Palmolive, Henkel and Gilette to a record fine of nearly one billion euros for price agreement. These cartels have caused great damage to the economy, given their national scale and the impact on consumers. [...]

[...] Explicate 2-3 important duties. In order to meet the expectations of the public as well as the market, companies are gradually adopting codes of conduct and ethical charters. However, as we will see in this case, some codes are not always respected (or potentially silenced as here by management direction). Here we have four former Berkshire Hathaway executives: Ronald Ferguson (Executive Director), Elizabeth Monrad (Chief Financial Officer), Robert Graham (Senior Vice President and Deputy General Counsel), and Christopher Garand (Vice President). [...]

[...] Employees - Ensure that this case does not impact their job and their working condition. Customers - Make sure AIG does not accuse its partners wrongly. Suppliers - Make sure you work with an honest partner who does not go to trial for nothing. The media - Inform the progress of the trial to the public. Government - Ensure that professional ethics laws are followed and apply the guidelines accordingly. The community - Ensure the credibility of laws introduced by the government. [...]

[...] BE (Business Ethics) / Corporate Social Responsibility (CSR) AIG/Berkshire Hathaway. The federal trial has begun for four former executives of Berkshire Hathaway's General Re Corp. (Ronald Ferguson, chief executive officer; Elizabeth Monrad, chief financial officer; Robert Graham, a senior vice president and assistant general counsel; and Christopher Garand, a senior vice president) and Christian Milton, AIG's vice president of reinsurance. The individuals are charged with participating in a scheme to manipulate AIG's financial statements to make it appear as if the firm increased its loss reserves by about $500 million in 2000 and 2001, pacifying analysts and investors and artificially boosting the company's stock price. [...]

[...] Unions - Defend the interest of the company and protect employees against all the repercussions this case may have. Employees - Ensure that this case does not impact their job and their working condition. Customers - Make sure you work with a company that is not dishonest. Suppliers - Make sure you do not work with a company that can skew your numbers for your own sake. Analysts and investors - Make sure the company does not lie to them just to have more investments. [...]

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