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Nortel Case Report

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Nortel Case Report
Nortel Case Study

Daniel Jensen
Victoria Brown
Mary Mantell
Matthew Passariello
Michael McBride

ACBG 4646 Accounting Ethics and Professionalism
Dr. Barbara M. Porco
Term Project

Brief History:
The company was born way back in 1882, as a mechanical department that was created within Bell Telephone Company of Canada to manufacture telephones and telephone equipment for Canada. Eventually the company progressed to the manufacturing of switchboards. The manufacturing arm of the company grew along with the demand for phone. In 1900, Northern Electric manufactured the first Canadian wind-up gramophones that played flat discs. The company also used to be affiliated with AT&T/Western Electric until Western was forced to sell its stake in 1949. In 1976, the company changed its name from Northern Electric to Northern Telecom Limited, and shifted its concentration on digital technology. In 1977, Nortel introduced its DMS line of digital central office telephone switches. Nortel ended its long relationship with AT&T in 1984, a year after deregulation named. Bell Canada Enterprises the parent company to Northern Telecom. In 1998, the company acquired Bay Networks and changed its name to Nortel Networks. In the late 90’s, Nortel’s sales of fiber optic network gear was predicted to help their sales, but the market became saturated very quickly. At the height of Nortel’s first 100 years the company amassed for more than a third of the total valuation of all companies listed on the Toronto Stock Exchange (TSX), but once the Internet bubble passed, the company fell into ethical debacle.
Nortel Networks Corporation, or formally known as Northern Telecom Limited was one of the largest telecommunications equipment companies in the world prior to its filing for bankruptcy protection on January 14th, 2009. During times of functionality, they specialized in multinational telecommunications equipment manufacturing. The company is based in Canada out of


Cited: McFarland, Janet. "New Board 'is an Improvement by a Mile '" GloveAdvisor.com. Jan. 2005. Web. 19 Apr. 2012. <https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20050112/RNORTBOARD12. 2 Mintz, Steven M., and Roselyn E. Morris. Ethical Obligations and Decision Making in Accounting: Text and Cases. New York, NY: McGraw-Hill/Irwin, 2011. 3Austin, Ian, “Ex-Nortel Executives’ Fraud Trial to Begin.” The New York Times. January 15th, 2012. 4 Nortel Networks Products. Web. 20 Apr. 2012. <http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055>. 5 "Nortel Networks Files for Bankruptcy Protection." CBC News. 14 Jan. 2009. Web. 20 Apr. 2012. 6 "Deloitte 's Hand Everywhere, Nortel Trial hears." Financial Post. Web. 23 Apr. 2012. <http://business.financialpost.com/2012/04/13/deloittes-hand-everywhere-nortel-trial-hears/>. 7 "Top Former Nortel Execs Charged with Fraud." Web. 23 Apr. 2012. <http://www.canada.com/ottawacitizen/news/story.html?id=c0d441c3-223a-4855-b3ad-09f6144727fa>. 8 Vinluan, F. "The Rise and Fall of Nortel: Unwise Acquisitions, Scandal Led to Downfall." - Triangle Business Journal. 24 Aug. 2009. Web. 19 Apr. 2012. http://www.bizjournals.com/triangle/stories/2009/08/24/story3.html?page=all 9 Sharp, Alastair. "Nortel Execs Say Deloitte Approved of Accounting." Reuters. Thomson Reuters, 19 Jan. 2012. Web. 23 Apr. 2012. <http://www.reuters.com/article/2012/01/19/us-nortel-idUSTRE80I20120120119>. 10 "Top Former Nortel Execs Charged with Fraud." Canada.com. Ottawa Citizen, 20 June 2008. Web. 23 Apr. 2012. <http://www.canada.com/ottawacitizen/news/story.html?id=c0d441c3-223a-4855-b3ad-09f6144727fa>. 11Top Former Nortel Execs Charged with Fraud." Canada.com. Ottawa Citizen, 20 June 2008. Web. 23 Apr. 2012. <http://www.canada.com/ottawacitizen/news/story.html?id=c0d441c3-223a-4855-b3ad-09f6144727fa>. 12 "All About Nortel | All the News about Nortel Networks." All About Nortel. 2012. Web. 23 Apr. 2012. <http://www.allaboutnortel.com/>. 13 "About Us | Nortel Networks Corporation." Nortel Networks Corporation. 2012. Web. 23 Apr. 2012. <http://www.nortel-canada.com/about/>. 14 "Yahoo Finance - Nortel." Yahoo Finance. 2012. Web. 23 Apr. 2012. <http://finance.yahoo.com/q?s=NRTLQ.PK%2C+&ql=1>. [ 2 ]. Nortel Networks Products. Web. 20 Apr. 2012. . [ 3 ]. "Nortel Networks Files for Bankruptcy Protection." CBC News. 14 Jan. 2009. Web. 20 Apr. 2012. [ 4 ]. "Deloitte 's Hand Everywhere, Nortel Trial hears." Financial Post. Web. 23 Apr. 2012. . [ 5 ]. "Top Former Nortel Execs Charged with Fraud." Web. 23 Apr. 2012. . [ 6 ]. Vinluan, F. "The Rise and Fall of Nortel: Unwise Acquisitions, Scandal Led to Downfall." - Triangle Business Journal. 24 Aug. 2009. Web. 19 Apr. 2012. [ 7 ] [ 8 ]. "Top Former Nortel Execs Charged with Fraud." Canada.com. Ottawa Citizen, 20 June 2008. Web. 23 Apr. 2012. . [ 9 ]. Top Former Nortel Execs Charged with Fraud." Canada.com. Ottawa Citizen, 20 June 2008. Web. 23 Apr. 2012. . [ 10 ]. "All About Nortel | All the News about Nortel Networks." All About Nortel. 2012. Web. 23 Apr. 2012. . [ 11 ]. "About Us | Nortel Networks Corporation." Nortel Networks Corporation. 2012. Web. 23 Apr. 2012. . [ 12 ]. "Yahoo Finance - Nortel." Yahoo Finance. 2012. Web. 23 Apr. 2012. .
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