Retrieved October 16th,from www. The staff included both from secretarial and organization positions. This produced an artificially inflated stock price which investors later filed lawsuits claiming financial statements did not reflect the true financial status of the corporation.
The comptroller of Sunbeam also revealed that Dunlap insisted that accounts should be pushed to the limit and not to be done in accordance to generally accepted accounting Sunbeam corporation ethics GAAP.
However, Chainsaw Al engaged in illegal and unethical accounting practice which gave a false representation of the company's turnaround. One of the principles was making extreme cuts in all operation areas, including extensive layoffs and stressed the fact that the most important goal of any business is making money for shareholders.
The company has indeed exchanged hands and by the time of Albert Dunlap in it had more than twelve thousand stock keeping units, or individual variations of its Sunbeam corporation ethics lines.
InMichael Price, manager of Mutual Shares, corporate turnaround executive Paul Kazarian, and hedge fund manager Michael Steinhardt purchased the bankrupt Sunbeam.
Meanwhile, Sunbeam continued to expand outside of Chicago. How should board make sure that it gets the information it needs to monitor management actions and accounting policies? Evaluation of alternative solutions and recommendations Dunlap and his management team should have focuses on giving investors the real image of Sunbeam's turnaround rather than falsifying this by….
Sunbeam had a financial culture of using the bill-and-hold strategy to attract more shareholders. Sunbeam corporation ethics "Chainsaw Al" Dunlap was hired as the CEO and chairman of the board in after the investors had tried to sell the company to no avail.
Business Ethics Case study on Sunbeam Corporation Essay Abstract This paper is about the business ethical issues as applied to the Sunbeam Company that enables it to attain greater profits. The staff included both from secretarial and organization positions.
Identify major rules and values: In OctoberDunlap announced that his turnaround plan for the company was complete.
Albert "Chainsaw Al" Dunlap was hired as the CEO and chairman of the board in after the investors had tried to sell the company to no avail. His strategy was to cut costs at all levels of the organization and return the corporate focus to its core products while searching for a buyer for the newly-organized company.
The business companies must always be committed to choose employees and managers based on core values like integrity, community service and entrepreneurship. Reliable numbers still matter. He noted that sales figures did not represent industry trends and the company was using the bill-and-hold strategy to shift sales from future quarters into the current quarter.
The sudden surge in demand for barbecues did not hold up under scrutiny. Although Dunlap's reputation had helped to increase the bottom-line of the company greatly, he knew well that this was not enough to sustain the growth.
Restatement of financial performance has been completed by reviewing reported revenue figures and correction of erroneous information. The company did not officially incorporate its name to Sunbeam until He expected Sunbeam to have another record year achieved by continuing with their global expansion and introduction of new and innovative product lines.
If they do it strategically, they would identify the abnormal growth of inventory and account receivable that Shore did. But still after the lawsuit, Dunlap continued with the strategy like nothing happened trying to reassure two hundred major investors and Wall Street analysts that the mistake will never happen Osemeyer, The stock price was the highest in the industry, selling at times its competitors.
The processes discussed being the choosing of right management team, making extreme cuts in the operation areas referred to us cost cutting strategy. He thus implemented his four strategies. This means therefore that management of the company was not following the correct business practices by focusing only on the short-term financial performance of the corporation rather that putting in place measures aimed at achieving the overall productivity and growth of the business in the long-term Schifrin, The implication was that some ethical business practices were not being practiced.
Andrew Shore who was an analyst for Paine Webber, Inc. The company said that computer glitches occurred which were responsible for these inventory problems.
Sunbeam had experienced price increases for raw materials and commodities that could not be passed along to the consumer given the competitive retail environment. In the final analysis however, all the accounting malpractices were eventually discovered thanks to the analyst Andrew Shore.
But still after the lawsuit, Dunlap continued with the strategy like nothing happened trying to reassure two hundred major investors and Wall Street analysts that the mistake will never happen Osemeyer, The company later added electric blankets, mattresses, humidifiers, vaporizers and thermostats, among other innovations.Sunbeam Corporation Ethics Words | 20 Pages Journal of Business Case Studies – January/February Volume 6, Number 1 Sunbeam Corporation: A Forensic Analysis Patricia Hatfield, Ph.D., Bradley University, USA Shelly Webb, Ph.
D., Xavier University, USA ABSTRACT The members of the Board of Directors at Sunbeam were completely bewildered. Sunbeam Corporation: “Chainsaw Al,” Greed, and Recovery INTRODUCTION When John Stewart and Thomas Clark founded the Chicago Flexible Shaft Company in Dundee, Illinois, inthey probably never expected that their company would grow into a huge conglomerate and face ethical and financial dilemmas more than years later.
Business Ethics and the Role of the Corporation The problem to be investigated is the ethical role that the corporation has when balancing internal strategies with external responsibilities. Dr. Novak explains various responsibilities a business has in his article “Business Ethics and the Role of the Corporation”.
Sunbeam came to be known as a recognized designer, manufacturer and marketer of innovative consumer products aimed at improving lifestyle. Inthe company changed its name to Sunbeam Corporation.
InSunbeam acquired Oster which allowed Sunbeam to expand into other home products such as hair dryers and health and beauty appliances. Sunbeam came to be known as a recognized designer, manufacturer and marketer of innovative consumer products aimed at improving lifestyle.
Inthe company changed its name to Sunbeam Corporation. InSunbeam acquired Oster which allowed Sunbeam to expand into other home products such as hair dryers and health and beauty appliances. Feb 25, · Sunbeam Ethics Case Determine the facts: Sunbeam Corporation earnings had been rapidly declining since Decemberand bythe stock was down 52 percent and earnings had declined by 83 percent.Download