There is no doubt that corporative scandals and corruption is more and more present and it is followed with great interest by the media and public. Economy history is filled with such examples, but what will the future be like? Today competition is more and more expressed, expressing efficiency and profitability, and consolidation of many industries, as well as strong need for survival on the market, leads to unethical and illegal business practice.
Therefore the need for visible hand of state that is international institutions in the form of more stringent laws. However, there is an open question: who is at this time competent to make rules and shall we say, to be a judge of judges? The fact that corruption is connected to totalitarian countries and not democratic regimes is ancient history. Great corporative scandals that shock in the last ten years Western world are the best example of it…
10VOLKSWAGEN – GERMANY (2005)
Bribed union representatives with holidays, shopping and prostitutes, orgies were used to get unions agrees to changes in working conditions.
09ENRON – USA (2002)
Enron is the world’s 6th biggest company in 2000, with annual revenue of 100 billion dollar. Hid billions of debt via fraudulent accounting – went bust on 2001.
08SIEMENS – WORLDWIDE (2008)
Siemens paid out 1 billion in bribes to secure government contracts – including a UN food program. Find a record 1.6 billion dollar by authorities.
07BRE-X – CANADA (1997)
Company that announced it had found 2400 tons of gold. Shares rose from under 1 to 280 dollar. There was no gold – the fraud cost investors 3 billion dollar.
06BCCI – UK (1991)
Bank forced to close after laundering money for terrorists and governments. Allegedly used by the CIA to fund Saddam Hussein, bin Laden and Iran-Contra affair.
05HP – USA (2006)
Spied on journalists and its own board members to find an info leak. Private investigators impersonated those under suspicion to illegally access phone records.
04NESTLE – WORLDWIDE (1977/ONGOING)
A charity claimed Nestles milk formula led to illness and death in babies in the developing world. Nestle deny the claims, but a boycott of their products continues.
03CARRIAN GROUP – HONG KONG (1983)
Hong Kong’s biggest bankruptcy involved a murdered auditor and the suicide of a company advisor. The founders served three years in prison for using illegal loans and faking profits.
02BANCO AMBROSIANO – ITALY (1982)
This bank collapsed following the murder of its Freemason chairman, suspected of laundering Mafia money and the possible murder of Pope John Paul I.
01UNION CARBIDE - INDIA (1984)
A toxic leak at a pesticide plant in Bhopal killed up to 25.000 people and injured over 500.000. Company cost-cutting safety procedures were blamed.
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