1. CA executives involved in the accounting scandal were not accused of reporting bogus contracts or hiding major problems in the business. The contracts that were backdated were real sales agreements. Was this really a crime? Should the individuals have been punished so harshly?
Answer:
The end does not justify the means. Truly, Backdating is really a crime it is a form of lie for hiding the truth or reality. Hiding or not telling the truth in general norms or in standard ethics is really unethical. The purpose maybe good but the fact of concealing the truth whatever the purpose may is it is really unethical practice of an employee.
2. In December 2004, CA appointed Patrick J. Gnazzo as senior chief compliance officer to demonstrate to the government and shareholders that the firm would take measures to operate ethically. Gnazzo served in this role at United Technologies for 10 years and had been a member of the board of directors of the Ethics Officers Association. Gnazzo reported to a new executive vice president and general counsel at CA as well as the board’s Compliance Committee. Outline some of the actions Gnazzo might have taken in his first six months on the job.
Answer:
Work experience of Gnazzo for over years will speak itself that he is competent enough to take responsibility of his new acquired job. As formality sake, being required by most of the company as guidelines in hiring procedure. Gnazzo, had undergone screening process, and evaluation enough to make or to prove himself for over a period of six (6) months that he can take responsibility and have acquired their trust. Performance and attitude is the primary basis of appointment where Gnazzo would have it all. He took the challenges and responsibility in line ti his job and surpass all those hitches that come in his way.
3. John Swainson, a 26-year veteran of IBM, joined CA in November 2004 as CEO and president. His first few months with the firm were rough—major customers threatened to dump the firm; some products were behind schedule and were of poor quality; executives had to be fired for breaking company rules; accountants continued to find past mistakes; and many newly hired executives had to be brought on board. What sort of leadership could he have demonstrated to show that he was determined to avoid future scandals at CA?
Answer:
In the year 1990’s CA has been hit with numerous scandals. These scandals raise questions and company down almost 2billion pesos was lost to their shares. How successful the firm might have been if not for the amount of time its executives had to spend on these distractions. Compare the revenue growth and stock price of CA to that of some of its competitors over the time period 2004–2008. But the CA’s is very strong they didn’t lost hope and they continue to operate.
4. CA has been hit with numerous scandals since the late 1990s. These scandals raise questions about how successful the firm might have been if not for the amount of time its executives had to spend on these distractions. Compare the revenue growth and stock price of CA to that of some of its competitors over the time period 2004–2008. (Be sure to use CA’s corrected figures!) Can you detect any impact of these scandals on CA’s performance? What else might explain the difference in performance?
Ans:
The CA’s scandal is the big effect to their company. Because if you see the performance CA’s they are the top investors compare to other investor knowing that they had total revenue of $ 4.3 billion in the year 2008.Cases and failures appear side by side and an executive becomes focus on fixing this problem. Since Wang retired, the chairman and CEO afraid to become to put in jail. But his doubt came true he found guilty and sentence in 12years in jail. A lot of money is spent because for the scandal and less revenue comes in on the next succeeding year. But whatever happen the company CA’s doesn’t stop to operate to recover again.
sauldarb 