Assessment 2 Information
Subject Code: Subject Name: Assessment Title: Weighting:
Total Marks: Due Date:
BUS102
Introduction to Management
Case Study
35%
35
Week 10 (3.55pm (AEDT) Monday 22 May 2017)

.Assessment Description Length: 1100 - 1200
From Volkswagen's Dieselgate to Martin Shkreli, the former CEO of Turing Pharmaceuticals, to Sepp Blatter, the disgraced former head of soccer's international governing body, 2015 did not disappoint on corporate scandals.
The allegations weren't as big as, say, Enron or Madoff, the characters were just as captivating. Shkreli was defiant on Twitter. Perhaps the most blatant was Volkswagen, which ran commercials of its engineers as angels even when company officials were setting up elaborate systems to lie to customers and get around pollution controls. Here are the most compelling corporate fiascos and alleged frauds of 2015.
CASE STUDY: The 5 Biggest Corporate Scandals of 2015
Chris Matthews, Stephen Gandel Dec 28, 2015
The Volkswagen Emissions Scandal
When Volkswagen revealed in September that it had installed software on millions of cars in order to trick the Environmental Protection Agency’s emissions testers into thinking that the cars were more environmentally friendly than they were, investors understandably deserted the company.
Volkswagen lost roughly $20 billion in market capitalization, as investors worried about the cost of compensating customers for selling them cars that weren't compliant with environmental regulations.
The company not only has to deal with compensating their customers, but it will also need to contend with potential fines from regulators as well as a reputational hit that could severely affect its market share.
FIFA Corruption Scandal
The only surprising fact about the FBI’s indictment of FIFA officials for racketeering, fraud, and other offenses was that the charges came from the United States, where soccer’s popularity lags the rest of the world.
The corruption part was the least remarkable aspect of the news, as FIFA officials had long been suspected
of taking bribes in exchange for granting broadcasting rights for games and hosting rights for events like the World Cup.
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
Assessment Information
The FBI also indicted five sports marketing executives at the same time. And the scandal spooked some of America’s largest corporations, including Coca-Cola and McDonald’s-top FIFA sponsors. These firms called on the governing body to fire its leadership and enact tough reforms.
Toshiba Accounting Scandal
No list of corporate screw-ups would be complete without a good old-fashioned accounting scandal. In September, electronics conglomerate Toshiba admitted that it had overstated its earnings by nearly $2 billion over seven years, more than four times its initial estimate in April.
CEO and President Hisao Tanaka resigned from the firm, and an independent investigators found
that “Toshiba had a corporate culture in which management decisions could not be challenged” and “Employees were pressured into inappropriate accounting by postponing loss reports or moving certain costs into later years.”
Valeant's Secret Division
In October, short seller Andrew Left accused drug company Valeant of using a specialty pharmacy company Philidor to artificially inflate its sales. Valeant denied the charges. But the fact that Valeant had never discussed its close ties to Philidor raised questions about Valeant's, and Philidor's, sales practices. It also shook investors' confidence in the acquisitive drug company, which had racked up debt as it did deals.
Valeant (VRX, +1.28%) could still be on the hook if Philidor broke any laws. Valeant employees appear to have worked at Philidor under aliases to hide their identities. And Valeant had paid $100 million for an undisclosed option to acquire Philidor for no additional dollars whenever it wanted, essentially giving Valeant ownership of the company.
Valeant has appointed a special committee of its board, and an outside investigator, to look into the company's ties to Philidor, but it has yet to report its findings. Valeant said that Philidor sales never amounted to more than 7% of its total sales. Valeant's shares fell 75% in the wake of these revelations, to just over $70 from a high of $260.
Also contributing to the stock fall was the fact that Valeant had been accused over the summer of price gouging, buying up drugs and then rapidly raising their prices. A number of members of Congress, including presidential hopeful Bernie Sanders, have called for an investigation into the company's drug pricing practices. And in early October, the company confirmed that it had received a federal subpoena.
Many well known hedge funders, including Bill Ackman, who has defended the company, suffered big losses on Valeant stock in the wake of the scandal.
Turing Pharmaceuticals and Martin Shkreli
Martin Shkreli became known as the bad boy of the drug industry after his drug company, Turing, increased the price of a 62-year-old drug that treated HIV patients by 5,000% to $750 a pill. But it's what he did before that could land him in jail.
In mid-December, the government arrested Shkreli on charges of stock fraud related to his activities while at Retrophin, the drug company he ran before Turing. The former hedge fund manager is accused of using shares of Retrophin to pay off investors who had lost money with a hedge fund he ran in the past. The government described Shkreli's alleged behaviour as similar to a ponzi scheme.
Shkreli, who maintains he is innocent, says there is little evidence of fraud because his investors didn't lose money. Shkreli, who has been defiant on Twitter about the allegations against him, bought the sole copy of a Wu-Tang Clan album for $2 million. He has had called himself the most successful Albanian. Mother Teresa, also an Albanian, presumably would not be proud.
Reference
Matthews, C & Gandel, S 2015 ‘The 5 biggest corporate scandals of 2015’, Fortune, 28 December, viewed 9 March 2017, http://fortune.com/2015/12/27/biggest-corporate-scandals-2015/
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
Assessment Information
Your Task:
The assessment does not require an introduction, conclusion or table of contents. Please refer to the marking criteria to assist as a guideline to help you complete the tasks.
You are to research and answer all of the following:
1. The case study has identified several ethical issues that have arisen with five different companies. Give a summary of the different ethical issues that have occurred with these companies. (150 words worth 5 marks)
2. Ethical dilemmas can occur within an organisation which can challenge individual and management decision making. Explain where the responsibilities lie when it comes to managing ethical behaviour. Is it the responsibility of the individual or of management? (400 words worth 10 marks)
3. Using one of the examples profiled in the case study identify what caused the breaches of ethical conduct. In your answer consider elements such as the management style of those in charge and the culture of the organisation. (300 words worth 10 marks)
4. Some organisations promote their corporate culture as one that supports ethical behaviour. Using any organisation of your choice as an example, explain the strategies they have in place to prevent inappropriate and unethical decision making from occurring. (350 words worth 10 marks)
Reference guide: in-text referencing and reference list may include references using weekly readings, text books, news articles from respected publications, and journal articles. Referencing should be in Harvard style - refer to Kaplan ‘Harvard Referencing Concise Guide’
Use a minimum of one reference per question
KBS presentation guidelines: Arial, size 11.5 font, 1.5 spacing
Submission: PDF and submit to Turnitin by the due date. Late submissions will incur a late penalty.
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
Assessment Information

Assessment Marking Rubric
Question 1
• Clearly understands ethical issues and gives comprehensive explanations
• Clearly understands ethical issues and gives in-depth explanations
• Understands ethical issues and gives sound explanations
• Shows some understanding of the ethical issues and provides explanations
• Shows limited understanding basic or no explanations
150 words /5
• All aspects of the discussion are relevant
• Most aspects of the discussion are relevant
• Some aspects of the discussion are relevant
• Aspects of the discussion are sometimes relevant
• Meaning is unclear
• Many of the aspects of the
Question 2
• No plagiarism
• Clearly understands
• Clearly understands responsibilities of individuals and management
• Understands responsibilities of individuals and management
• Some aspects of the discussion
• Shows some understanding of the responsibilities of individuals and management
400 words /10
management
• All aspects of the discussion are
• Most aspects of the discussion are relevant
are relevant
• Discussion is supported by a
• Aspects of the discussion are sometimes relevant
individuals and management • Meaning is unclear
• Many of the aspects of the
High Distinction Distinction Credit Pass Fail 85–100% 75–84% 65–74% 50–64% 0–49%
• Discussion is supported by a substantial range of credible and current sources
• Discussion is supported by a wide range of credible and current sources
• Discussion is supported by a range of credible and current sources
• Discussion is supported by some sources but not always credible and current
discussion are not relevant
• Discussion is not supported by
• Sentences and paragraphs are well structured and clear so the reader can focus on what is written.
• Sentences and paragraphs are consistently well structured
• Vocabulary is comprehensive
• Sentences and paragraphs are mainly well structured
• Sentences and paragraphs are readable but with grammatical errors
credible and current sources (does not use minimum references)
• Vocabulary is professional, appropriate and extensive
• Vocabulary is limited
• Substantial errors in grammar,
• Many grammatical, vocabulary and spelling errors
• Grammar, spelling and punctuation are flawless, which allows the reader to focus on the message.
presented in terms of KBS guidelines and assignment instructions with minimal exceptions
presented in terms of KBS guidelines and assignment instructions with some exceptions
spelling and punctuation • Document professionally
• The main points and new technical terms are not explained, or are ambiguous
• Document professionally presented in terms of KBS guidelines and assignment instructions
• In-text referencing and reference list format correct with limited errors
• In-text referencing and reference list format correct with some errors
presented in terms of KBS guidelines and assignment instructions with a number of exceptions
• Document poorly presented and does not comply with KBS guidelines and assignment instructions
• In-text referencing and reference list format correct
• No apparent incidents of plagiarism
• Evidence of plagiarism
• Shows limited understanding
responsibilities of individuals and
of the responsibilities of
relevant
• Discussion is supported by a
• Discussion is supported by a wide range of credible and current sources
range of credible and current
• Discussion is supported by some sources but not always credible and current
discussion are not relevant
• Discussion is not supported by
substantial range of credible and
sources
• Sentences and paragraphs are
current sources
• Sentences and paragraphs are
• Sentences and paragraphs are consistently well structured
• Vocabulary is comprehensive
mainly well structured
• Vocabulary is sound
• Some errors in grammar,
• Sentences and paragraphs are readable but with grammatical errors
credible and current sources (does not use minimum references)
well structured and clear so the reader can focus on what is written.
• Minimal errors in grammar, spelling and punctuation
spelling and punctuation
• Vocabulary is limited
• Substantial errors in grammar,
• Comments are poorly structured and unclear
• Vocabulary is professional, appropriate and extensive
spelling and punctuation
• Many grammatical, vocabulary and spelling errors
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
• Minimal errors in grammar, spelling and punctuation
• Document professionally
• Vocabulary is sound
• Some errors in grammar, spelling and punctuation • Document professionally
• Comments are poorly structured and unclear
• No plagiarism
• No plagiarism
• In-text referencing and reference list format contains significant errors
• In-text referencing and reference list format incorrect or omitted
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.

Question 3
• •
• Clearly identifies where breaches occur
• Understands where breaches occur
• Shows some understanding of where breaches occur
• Evidence of plagiarism
• Shows limited understanding
300 words /10
demonstrate an understanding and is not supported by credible and current sources (does not use minimum references)
Question 4
• •
• Clearly identifies preventative steps using quality examples
• Most aspects of the discussion
• Identifies preventative steps using appropriate examples Some aspects of the discussion are relevant
• Identifies some preventative steps using some examples • Aspects of the discussion are
• Evidence of plagiarism • Able to identify limited
350 words /10
• •
are relevant
• Analysis demonstrates an in-
• Analysis demonstrates a sound understanding and judgement, supported by a range of credible and current sources
sometimes relevant
• Analysis demonstrates some
able to using examples
• Meaning is unclear
• Many of the aspects of the
•
Grammar, spelling and punctuation are flawless, which allows the reader to focus on the message.
Document professionally presented in terms of KBS guidelines and assignment instructions
In-text referencing and reference list format correct
No plagiarism
Clearly identifies where breaches occur
Analysis demonstrates comprehensive understanding and valid judgement, supported by a substantial range of credible and current sources
Sentences and paragraphs are well structured and clear so the reader can focus on what is written.
Vocabulary is professional, appropriate and extensive Grammar, spelling and punctuation are flawless, which allows the reader to focus on the message.
Document professionally presented in terms of KBS guidelines and assignment instructions
In-text referencing and reference list format correct
No plagiarism
Clearly identifies preventative steps using high quality examples All aspects of the discussion are relevant
Analysis demonstrates comprehensive understanding and valid judgement, supported by a substantial range of credible and current sources
• Document professionally presented in terms of KBS guidelines and assignment instructions with minimal exceptions
• Document professionally presented in terms of KBS guidelines and assignment instructions with some exceptions
• Document professionally presented in terms of KBS guidelines and assignment instructions with a number of exceptions
• The main points and new technical terms are not explained, or are ambiguous
•
• Document poorly presented and does not comply with KBS guidelines and assignment instructions
•
• No plagiarism
• No plagiarism
• No apparent incidents of plagiarism
•
• Analysis demonstrates an in- depth understanding and sound judgement, supported by a wide range of credible and current sources
• Analysis demonstrates a sound understanding and judgement, supported by a range of credible and current sources
• Analysis demonstrates some understanding and judgement, supported by some sources but not always credible and current
where breaches occur • Analysis does not
•
• Sentences and paragraphs are consistently well structured
• Vocabulary is comprehensive
• Sentences and paragraphs are mainly well structured
• Sentences and paragraphs are readable but with grammatical errors
• •
• Minimal errors in grammar, spelling and punctuation
• Document professionally
spelling and punctuation • Document professionally
• Many grammatical, vocabulary and spelling errors
•
• In-text referencing and reference list format correct with limited errors
• In-text referencing and reference list format correct with some errors
• In-text referencing and reference list format contains significant errors
• Document poorly presented and does not comply with KBS guidelines and assignment instructions
•
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
• In-text referencing and reference list format correct with limited errors
• In-text referencing and reference list format correct with some errors
• In-text referencing and reference list format contains significant errors
• In-text referencing and reference list format incorrect or omitted
presented in terms of KBS guidelines and assignment instructions with minimal exceptions
presented in terms of KBS guidelines and assignment instructions with some exceptions
presented in terms of KBS guidelines and assignment instructions with a number of exceptions
• The main points and new technical terms are not explained, or are ambiguous
• No plagiarism
• No apparent incidents of plagiarism
depth understanding and sound judgement, supported by a wide range of credible and current sources
understanding and judgement, supported by some sources but not always credible and current
discussion are not relevant • Analysis does not
• Vocabulary is sound
• Some errors in grammar, spelling and punctuation • Document professionally
• Vocabulary is limited
• Substantial errors in grammar,
• Comments are poorly structured and unclear
• No plagiarism
• In-text referencing and reference list format incorrect or omitted
• Sentences and paragraphs are
• Sentences and paragraphs are
demonstrate an understanding and is not
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
preventative steps and not