While we all make errors at times, when Businesses make them, they can cause risks to the overall well-being of the public in general. 2015 had numerous corporate scandals. While many were not deliberate, there were some that demonstrated greed and a lack of ethics.
Top 10 Business Scandals of 2015
1. Toshiba’s Bookkeeping Scandal
Executives expected its employees to meet excessive targets. As a result, the company falsified its profits over seven years to a massive $2 billion.
2. FIFA’s Racketeering Problem
Investigators brought charges against FIFA after arrests in May and December. Officials were involved in bribes worth millions of dollars. The corrupt behavior affected clothing sponsorship, FIFA Presidential elections and the selection procedure for the World Cup.
— The Capitalist (@Capitalist_Site) May 9, 2016
3. Goldman Sachs Employee's Use of Confidential Materials
The company was fined 50 million dollars because of the illegal actions of an employee. The latter allegedly gave confidential information to a client. Having worked for the Federal Reserve Bank of New York in the past, he was able to get this material through his connections.
4. The Unsavory Business of Oil and Gas
In November, nine different companies were cited for exploitation and corruption. It was alleged that $34 million of heating oil, meant for customers, was never provided to them. Instead, it was resold, and the customers were not aware they had been swindled.
5. Millions of Children’s Personal Data Hacked
V. Tech, a company that retails tablet computers for children was hacked. The hack uncovered personal information of 6.4 million children and 4.8 million adults. Luckily for all, the hacker did not sell the information but went to the media, so he could force V. Tech to resolve its security problems.
Exxon Mobil Intentionally Deceives the Public About Climate Change.
Scientists had carried out research on global warming in the Arctic on behalf of Exxon. The result of the investigation was a resounding yes, which meant issues for the company. Rising sea levels could destroy
• Drilling platforms
• Processing plants
• Pump stations
Instead of being part of the solution Exxon, wanted to increase profits. It started a multimillion dollar operation, raising doubts about climate change.
6. Volkswagen Interferes with Emission Tests
The Environmental Protection Agency caught Volkswagen out in a serious infringement. This could cost the company $87 billion dollars. Volkswagen installed software, in 11 million cars globally, which duped the results in its favor.
7. Turing Pharmaceuticals Put Up Prices of an Essential Drug
The CEO of Turing Pharmaceuticals, Martin Shkreli, revealed that he had been under pressure to make the company lucrative. Consequently, he purchased the rights to Duraprim, a drug which aids HIV/AIDS patients who develop a rare infection. He immediately increased the price from $18 a pill to $750.
Shkreli’s attitude did not help the company. He said that he should have charged more for the drug. Shkreli’s actions and uncaring mindset labeled him ‘the most despised CEO on earth’ and were a PR dilemma for the Company.
8. Attitudes Towards Workers at the Coalface
Companies who have been successful are coming into the spotlight for their scandalous treatment of their workers. Executors focusing on continually increasing profit margins are reverting to remuneration and work conditions of a former time. Workers have only become cogs in the wheel of big business.
9. McDonald’s Pay Scandal
Laurentina, who works at McDonald’s in Chicago, has shared her experience with the Global Fast Food Chain. Recently she took part in a strike outside the business to dispute the low wages she and other employees are paid. Laurentina works five days a week, and her job has included kitchen duties and work as a cashier.
Laurentina started on a wage of $6.25 an hour, and she now receives $9.15 an hour for 25 to 30 hours a week. Every six months she gets a raise which is usually only 5 cents an hour. Laurentina was offered a manager’s position with a 50 cent rise for a very stressful job.
McDonalds answer to their employees’ dilemma is to get a second job. Despite a drop in customers, over the pay scandal, McDonalds made a profit of 8.56 billion in the US in 2015. This has made the scandal even more outrageous.
10. Amazon Workers Are Disillusioned
Amazon workers are:
• Are expected to report confidentially about other workers through a software program.
• Are under threat of losing their job when a personal crisis in their life is taking their minds off the job.
• Expected to work 75 plus hours a week.
A former employee has told a researcher that everyone she worked with were on depression medication, frequently abused alcohol and had sleeping issues regularly. This is a poor reflection on Amazon, which is the most profitable retailer in America.
In 2011, Amazon employees were expected to work, in warehouses without air conditioning, in the summer heat. Ambulances were on standby to take workers suffering from heat stroke to hospital. Conditions have improved, but employees are still considered a replaceable commodity.
It is a sad reality that many successful businesses are using scandalous and often criminal behavior to make profits whereas they could be making a positive impression in the world.
- U.S. Employment Costs Surge
- UAW Strike to End Following Tentative Deal with General Motors
- Prices for Goods and Services Increase Beyond Expectations
- GDP Soars 4.7% Thanks to Rise in Consumer Spending
- New Home Sales in the U.S. Rise Amid Skyrocketing Interest Rates
- Reports: X/Twitter Shrinking Worsens Following Rebranding
- Reports: Amazon Testing Humanoid Robots for Warehouse Operations
- Elon Musk’s X/Twitter Announces Subscription Tiers