5 biggest corporate scandals ever
Corporate scandals which have not grabbed the media’s attention will also have created some impact in the business economy. When looking across, here are some 10 corporate scandals which have resulted huge economic impairment.
Xerox
Xerox is a US based company which has won incredible popularity in the field of document management. This company was established in the year 1906 and has been very successful in the market since its venture. During the year 2002, it was found that there were wrong entries in the balance sheets in the year 1997 – 2000. The U.S. Security and Commission filed malpractice against the company and were demanded to pay 10 million dollars as penalty.
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Compass Group
Jack Bateman took all the initiatives in establishing Compass Group in the year 1941. The company gave its entry with a small canteen for supporting the British war staff. In some year time, the company achieved an incredible group in the catering industry. In the year 2005, the scandal was turned up when UN Procurement office teamed with Vladimir Kuznetsov got caught in the corruption. The group accepted that they have received 1 million dollars as a bribe from Compass Group. The company stated that only a few people in the management where involved without the management knowledge however everyone in the team who were involved were terminated.
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Union carbide
It is a chemical manufacturing unit which was established in the year 1917 and also it has the pride being the pioneer of petrochemical industries. Union Carbide captured the news highlights that during a industrial catastrophe, more than 5 million individuals in Bhopal were exposed to methyl isocyanate leak and created incredible disaster. This was the worst industrial disaster that happened ever in the history. The government of India sued the company and claimed around 480 million dollars for taking the life of pity people.
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ImClone Systems
ImClone Systems is one of the popular American Pharmaceutical Company which was established in the year 1984. This company was involved in producing medicines for cancer. In the year 2001, the entire pharmaceutical world was shocked with the FDA of America declined the most expected medicine that supported the company’s growth. Further the CEO of ImClone sold most the shares and determined his family and relatives to follow the suit. He was kept on imprisonment for 7 years time for the fraudulent act made.
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British Petroleum Oil
British petroleum is the world’s 3rd largest company that operates in more than 75 countries. BP was established in the year 1906 and has been successfully earning several million dollars each year. A massive oil spill occurred in the year 2010, where huge oil was leaked from the wells travelling from the Gulf to the Mississippi Delta. 11 people died due to the blast happened and the normal marine life was completely disturbed. British Petroleum spared around 1 million dollars to resolve the damage claims and till now it has paid near 5 million dollars to the claimants.
