Valeant Critical Thinking.docx - Valeant The Pharmaceutical...

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Valeant: The Pharmaceutical Enron 1. The first example of poor corporate governance in this case is that they took poor responsibility for their actions. The fact that Valeant shares went from being traded at as high as $262 per share in August 2015 to only $27 by March 2016 shows the poor decision making that they made. The improper accounting procedures and allegations of predatory pricing also led to this downfall. The second example is the decision to not create a code of ethics for the company. The decision to not do so was because some of the employees found it necessary to sign company operations using fake aliases. The third example is that they did not track transactions that are ongoing within the organization. 2. 3. 4. Yes, the release of negative research information by a company that is actively shorting the shares of that company is an unethical business practice. It is considered unethical because when a company that is shorting shares releases negative information the stock will look less appealing to investors and that leads to a loss of investment for the

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