Ethical conduct on the part of a business is essential to its long-term survival. Ethical conduct is involved in the whole level of a business from one person to the whole industry. Ethical behavior is significant for long-term operations of business entities. Therefore‚ ethical conduct is beneficial to the consolidation of the business reputation‚ the sound development of management system and attraction of honest employees. Business reputation is built on the basis of trust‚ and the trust
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The Demise of AIG: A Corporate Downfall Crystal Ruff Globe University ABSTRACT This paper focuses on the financial demise of AIG and the corporate culture that pushed it there. It lays out specific factors that contributed to the bailout of the company and the ethical conduct of the executives that contributed to the poor decisions that led the company to a massive failure and ultimately‚ a bailout. Even though the company is on the road to recovery‚ its reputation has been damaged and some
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INSTITUTE OF ACCOUNTACY ARUSHA (IAA) RESEARCH PROPOSAL TOPIC: ASSESMENT OF ETHICAL CODES OF CONDUCT IN PROCUREMENT PRACTICES IN PUBLIC ORGANISATION. CASE STUDY: MINISTRY OF FINANCE SUPERVISOR: MR. A. MIBAZI PREPARED BY: KISIMA‚ GENUINE 3rd YEAR ADVANCED DIPLOMA IN PROCUREMENT
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American International Group and the Bonus Fiasco On September 16‚ 2008 AIG suffered a liquidity crisis following the downgrade of its credit rating. In response‚ the federal government allotted AIG 85 billion in a bailout to keep the firm afloat in exchange for an equity stake in the company. In a very controversial move‚ AIG paid out more than 500 million in salaries and bonuses to senior employees after accepting the federal assistance money. This outraged the public‚ and in turn politicians
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Abstract AIG traces its root to 1919‚ when American Cornelius Vander Starr established a general insurance agency‚ American Asiatic Underwriters‚ in Shanghai‚ China. Since then‚ an enterprising spirit‚ ingenuity‚ and tenacity have built the company into one of the world’s leading insurers. Today‚ AIG is focused on what it has been known for since the beginning: the willingness and ability to provide insurance coverage to meet the diverse needs of its clients. American International Group‚ Inc. (AIG) is
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Running head: AIG BAILOUT AIG Bailout Clari McGougan‚ Shawna Wilson‚ Keasha Kessler‚ Lashonda Edwards‚ Dale Ballard‚ and Michael Baltzelle University of Phoenix AIG Bailout The main ethics categories and theories involved in the American International Group (AIG) bailout are duty based ethics which has its pros and cons‚ and the theory is deontological which puts the rightness of an action before good. The pros of duty based ethics are equal rights are important to every person
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Seattle‚ Washington danryoung@netzero.net Presented the Spring Meeting of the CAS New Orleans‚ Louisiana May 6‚ 2009 The Story of the AIG Accounting Scandal The Companies The Participants Regulatory Scrutiny Intensifies The Prosecution Case The Defense Case Relevant Laws and Regulations The Fate of the Participants The Companies AIG Overview (2007) World’s largest insurance and financial services company 93‚000 employees Business in 130 countries
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likely seen the American International Group (hereinafter AIG) commercial with the little boy who walks into his parent’s room while they are sleeping. When his mother asks if he had a nightmare‚ he says “no” and that he’s worried about his parent’s financial future. After a twenty-second spiel about his worries‚ the father says‚ “Buddy‚ we’re with AIG” and he goes‚ “Oh!” and walks out of the room and (assuming) back to his bedroom.[1] AIG‚ established as a Delaware corporation in 1921 by Maurice
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describes the regulation gap in the CDS market and states the regulation reform after the crisis. Part I is background‚ generally introduces the Wall Street crisis. How it happened? What consequence it has? Part II is mainly about AIG’s CDS business: how AIG got involved in the crisis and why the biggest world insurance company suddenly collapsed. Part III is about credit default swaps: definition‚ construction‚ and problems. Part IV is concerned on the regulation reform after AIG’s failure. Wall Street
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Their code of ethics is to encourage honest and ethical conduct‚ including fair dealing and the ethical handling of conflicts of interest; encourage full‚ fair‚ accurate‚ timely and understandable disclosure; encourage compliance with applicable laws and governmental rules and regulations; ensure the protection of the Company
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