Initial Posting: Waste Management Inc Fraud
Initial Posting: Waste Management Inc Fraud
How SEC assist in preventing fraud: They assist in preventing fraud by ensuring the market is operated in fair and orderly manner, the professionals in the securities industry deals with their clients fairly, and that corporations make public information and materials about their businesses proper for investor’s judgment and decision making. They are “watch dog” of Country’s Corporation by overseeing operations of security regulatory organization and setting rules to protect the securities market.
Significant to the effectiveness of SEC is the enforcement of authority, and bringing civil enforcement and action against individuals and companies that violate the securities law.
Why Waste Management executives perpetrated the fraud: The perpetrators motivation was driven by greed and it involved enriching themselves, preserved their corporate position and status in the business and social community. The incentive involved includes bonuses, stocks options and retirement benefits which are based on the performance of the company.
Actions to be taken when there is high expectations in meeting sales targets: When unrealistic sales target is been set by the management, there are three factors to be considered which are, the sales person, executives and the company itself. In many cases management knows that these goals can’t be reached but they continue to push the sales team and themselves more thinking this will motivate them, in which end up in failure. In this situation ethical code and conduct plays a significant role to an employee’s integrity and company’s reputation as well. Rather than violating the ethical standard and involving in fraud to meet these goals, I will implement new sales strategies to motivate my team in achieving their goal.
Financial statement fraud usually an expensive type of fraud: Yes I agree, and