SHARE Although studying creativity is considered a legitimate scientific discipline nowadays, it is still a very young one. In the early s, a psychologist named J. Guilford was one of the first academic researchers who dared to conduct a study of creativity. He challenged research subjects to connect all nine dots using just four straight lines without lifting their pencils from the page.
Inthe Securities and Exchange Commission SEC filed a complaint against the company, accusing it of "perpetrating a massive financial fraud lasting more than five years. The company headquarters managed the fraud and recorded topside entries.
For most corporations, organizational transformation is a continuous process that enables adaptation to an ever-changing global business environment and encourages advances in technology, science, competition, customer demand and government regulation.
The most common form of change is corporate restructuring outsourcing, offshoring, etc. The most complicated, dramatic and challenging form of change is mergers and acquisitions. Change is inevitable, but it exposes companies to significant financial, occupational and compliance fraud risks — as Waste Management Inc.
In some instances, senior managers Sunbeam fraud triangle used restructuring or mergers and acquisitions as vehicles to commit fraud. Public Companiesexamined U. The study identified "the need to meet internal or external earnings expectations" and "the need to bolster financial performance for pending equity or debt financing" as the most commonly cited fraud motivations.
A transition can pressurize senior management to meet or exceed objectives or financial targets. They often try to hit such financial targets as increased or sustained profitability, revenue, positive cash flow generation and cost reduction — all while maintaining high levels of quality and productivity.
Employees also might be subject to personal financial pressure because of excessive debt due to living beyond their means, gambling or addiction problems.
Also, worsening general economic conditions might induce pressure. Periods of change might weaken internal control systems and make management oversight and monitoring of the internal control systems ineffective. Employees might perform controls less diligently because they lack care, focus, engagement or loyalty towards the company.
Supervision might become ineffective as managers leave the company. With reduced supervision, in some extreme instances, employees might collude to override controls for personal gain. Fraudsters generally are able to rationalize misconduct, regardless of organizational conditions.
However, a merger or acquisition might induce other employees, who are normally honest during normal circumstances, to commit crimes. Some might attribute their declining loyalty to changes of position or loss of jobs.
Some might believe that change leads to discrimination and unfair practices. Others might focus on entitlement because they feel underpaid or underappreciated.
With this mix of pressures, increased opportunities to commit a crime and easy rationalizations, fraudsters might find themselves in a prime position to commit fraud. Failing companies always feel pressure from shareholders to boost earnings.
Sunbeam-Oster is a classic case of a new top pressurized boss fudging the figures to illegally prop up a stumbling firm. InSunbeam, maker of Sunbeam electric blankets and Oster blenders, announced a corporate restructuring, recorded a significant accounting charge and hired Al Dunlap as chairman and CEO to turn everything around.
That same year, the company took a huge write-off as it closed plants and laid off employees. However, its reported profits soared in Accuses Former Sunbeam Official of Fraudby Floyd Norris on May, 16,Dunlap told analysts in a earnings conference call, "We are winning in every aspect of our business.
According to The New York Times article, the suit stated that Sunbeam "orchestrated a fraudulent scheme to create the illusion of a successful restructuring of Sunbeam and facilitate the sale of the company at an inflated price.
Three acquisitions, announced inmasked the fraud: Dunlap felt pressured to turn Sunbeam around. He used his position as an opportunity to commit the fraud. And according to, Sunbeam Corporation: Here are some points of action that management and boards in changing organizations should heed: Maintain effective corporate governance and periodically communicate key governance activities to employees to remind them that despite the transition, the corporation continues to implement internal controls and it requires compliance with them.
Governance activities could include audit committee meetings to review internal controls, including interactions with external and internal auditors.Since the early days of cinema, Rhode Island has been a prime filming location. Things were a little slow around here filmwise during the s and '60s, but the '90s made up for that, earning our state the sobriquet "Hollywood of the East.".
Jul 31, · An Online Tagalog - English Dictionary Learn Tagalog or Filipino Language for free. Mercedes E4V. I am offering my Mercedes E for sale at offers over £ This model is showing as only one of six from on the leslutinsduphoenix.com original features including safety triangle, tool kit, security stickers and first aid leslutinsduphoenix.com inspection welcome.A very nice clean example of this model and leslutinsduphoenix.com Change is inevitable, but it exposes companies to significant financial, occupational and compliance fraud risks — as Waste Management Inc.
Robert Carson was born on June 8, in Carman, Manitoba, Canada as Robert Samuel Carson. He was an actor, known for The Ten Commandments (), Red Snow () and Hawaiian Eye ().
He died on June 2, in Atascadero, California, USA. Mercedes-Benz (W) SOLD, £ Mercedes-Benz (W) Body colour: White Trim colour: Blue Mileage: KM , Price.