Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading content…
Loading…
Transcript

Mark Whitacre & The ADM Pricing Scandal

$1 Billion

Vol XCIII, No. 311

1992-1995

Alternative 1

Ethical Implications & Stakeholders

What You Should Know

  • should have turned himself in to the FBI for embezzlement
  • could have asked for a plea / more lenient sentence
  • desperate financial status
  • could persuade senior executives to stop unethical behavior

Relevant Facts

Ethical Issues

  • education
  • climbling the corporate ladder
  • ADM Fraud
  • What is price fixing?
  • Whitacre's involvement

What they did wrong & who was affected

  • corporate culture
  • companies using ADM's products and end consumers fell victim to price fixing
  • employees who knew about the price fixing couldn't be prosecuted for their separate frauds
  • lost investments on a scam charged back to company hurting innocent coworkers
  • Whitacre went behind other unethical coworkers backs to help the FBI
  • given kickbacks up to $11 billion and stored them in off-shore accounts
  • embezzled $9 million when he knew he would lose his job
  • actions affected family and children

Live your life as the green lamp is always following you around

Why Act Unethically?

Alternative 2

Fraud Triangle and Whitacre's 3 Reasons

What is the most ethical decision?

  • Whitacre should have reported ADM for creating fake companies to evade taxes from the get go
  • wouldn't have had to go undercover for 3 years for the FBI
  • wouldn't have gone to prison
  • IRS would have collected correct amount of taxes
  • DRAWBACK: the bigger fraud (price fixing) may never have been uncovered
  • Although SEC may have performed a thorough invesitgation and discovered the price fixing
  • MOST ETHICAL ALTERNATIVE
  • Fraud Triangle
  • Perceived Financial Need
  • Opportunity
  • Rationalization
  • Whitacre's 3 Reason's to Act Unethically
  • short-term vs. long-term
  • individual vs. community
  • loyalty vs. ethical behavior
  • Consequences
Learn more about creating dynamic, engaging presentations with Prezi