Wednesday, December 22, 2010, AM | Leave Comment
Folks! It has happened again and it might happen many times over in the not too distant future. These days, it seems to be the order of the day. New York Times online has reported that NY State Attorney General Andrew Cuomo has sued Ernst & Young over Lehman Brothers scam. Well, Cuomo has not categorized as a scam in the lawsuit. But it’s nothing but a scam of the utmost.
A scam of this proportion by an organization that has portrayed itself as the epitome of fair business is nothing but a shameful act. But that’s how the fairness and unbiased auditing look to us folks. We don’t know about any person or organization til we hear about them that some crooks have scammed the American public.
When I went to business school, we were required to take a course on Government and Ethics. It seems that once some folks get out of school and when they close the books, they close the books on ethics in particular. They think ethics are only in textbooks. In the real world, in their mind ethics seem to evaporate into thin air.
Businesses must have ethics standards implemented in their organizations. I have written more than once on these pages that America is going on the path of any country that has adopted corruption as part of their law. Something is not kosher.
Organized crime is called organized because in the organization, everyone is involved in the crime, from the boss of bosses to what is usually known as the lieutenant. It seems from the lawsuit that everyone was involved, from the CEO down to the Auditors in Ernst & Young. The third world countries are not that developed to commit such a widespread corruption in a company.
It’s hard to believe that the CEO and CFO and all the C-level executives would not be involved in the scam. People in organized crime are sent to jail probably for life. The crimes – oops the alleged crimes – committed by Ernst & Young are of white-collar nature. So they would definitely seek to have some sort of out-of-court settlement. That’s how humans have worked everywhere.
In a Nutshell
The senior executives, the so called big guys, need to have a short course in business ethics. America has been slapped too often by external and internal forces. It seems that the foundation of businesses are getting shallow on a weekly and monthly basis.